A country’s Gross Domestic Product (GDP) is a general gauge of its economic health. Let’s take a look at the $100 trillion global economy, all in one chart.
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The global economy has now reached a new milestone by exceeding the $100 trillion threshold.
Avery Koop of Visual Capitalist previously wrote about this subject when the world’s GDP was $88 trillion in 2020, then $94 trillion in 2021. As of the time of this writing, the IMF’s most recent projections predict that the global economy will reach nearly $104 trillion in nominal value by the end of 2022.
The recovery that was anticipated in the post-pandemic period appears strained, despite the fact that growth is still heading upward. Global economic estimates are being lowered as a result of recent conflicts, supply chain obstructions, and the ensuing inflation.
Prior to being revised, the first estimate for 2022’s global annual GDP growth was 4.4 percent; the new estimate is 3.6 percent.
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A country’s Gross Domestic Product (GDP) is a general gauge of its economic health. It calculates the entire monetary value of products and services generated in the private and public sectors over a specific period of time.
The 50 Largest Economies in the World
With a $25.3 trillion GDP, the United States remains the world’s largest economy and accounts for almost a quarter of the world’s global economy. China comes in second place with $19.9 trillion. Here are the top 10 nations in the world by GDP:
Germany is the leader in Europe with a $4.3 trillion economy, followed by the UK. One notable development since the previous statistics has been that Brazil has surpassed South Korea to break into the top 10. With a $1.8 trillion GDP, Russia comes in barely outside the top 10, at 11th place.
The U.S. will lose its position as the world’s economic leader by 2030, despite the fact that China’s GDP growth has fallen in recent years.
Thanks to increasing oil prices—Iraq and Saudi Arabia in particular are spearheading this charge—the Middle East and North Africa are one region that is also anticipated to enjoy growth in the near future. In 2022, the region’s GDP growth is anticipated to be approximately 5%.
The 50 Smallest Economies in the World
As a consequence of the pandemic and the accompanying inflation and food supply shortages brought on by the war in Ukraine, several of the world’s smallest economies were particularly heavily hit.
Here are the nations with the lowest GDPs in the world as of 2022:
Tuvalu, with a $66 million economy, has the smallest economy in the world according to the IMF rankings. The majority of the bottom 50 nations are regarded as emerging/developing nations with low to moderate incomes. The World Bank predicts that by 2022, per capita income in emerging nations will be around 5% lower than pre-pandemic patterns.
In certain nations, notably emerging and developing economies in Europe, GDP growth is actually expected to be negative this year.
For instance, the GDP growth rate for Russia is predicted to be -8.5 percent in 2022, however it is yet unclear how the cost of the conflict and the more severe international sanctions would affect the nation’s economic prospects.
Inflation, Stagflation, Recession – How Bad is it?
Even if estimates for global economic growth have already been revised downward, things could yet become worse. Stagflation risks, according to organizations like the World Bank, are increasing. An economy with growing inflation and stagnating economic output is known as stagflation, which has not happened since the 1970s.
Consumer price inflation is currently estimated to be 7 percent worldwide. As central banks around the world attempt to handle the situation, purchasing daily necessities is becoming more and more challenging, and interest rates are rising. Economic volatility poses a particular risk to low-income countries, as the recent events in Sri Lanka have shown.