The world economy is in a never-ending state of flux.
The fact is that billions of variables - both big and small - factor into any calculation of overall economic productivity, and these inputs are changing all of the time.
Buying this week’s groceries or filling up your car with gas may seem like a rounding error when we are talking about trillions of dollars, but every microeconomic decision or set of preferences can add up in aggregate.
And as consumer preferences, technology, trade relationships, interest rates, and currency valuations change - so does the final composition of the world’s $86 trillion economies.
Today’s visualization comes to us from HowMuch.net, and it charts the most recent composition of the global economic landscape.
It should be noted that the diagram uses nominal GDP to measure economic output, which is different than using GDP adjusted for purchasing power parity (PPP).
The data in the graphic (below) and table above comes from the World Bank’s latest update, published in July 2019.
The above 15 economies represent a whopping 75% of total global GDP, which added up to $85.8 trillion in 2018 according to the World Bank.
Most interestingly, the gap between China and the United States is narrowing - and in nominal terms, China’s economy is now 66.4% the size.
Sources: The World’s $86 Trillion Economy Visualized in One Chart | The World Bank
The World Bank also provides a regional breakdown of global GDP, which helps to give additional perspective:
The organization breaks it down by income levels, as well:
The low-income countries - which have a combined population of about 705 million people - add up to only 0.6% of Global Gross Domestic Products (GDP).
For more on the world economy and predictions on country GDPs on a forward-looking basis, we suggest looking at our animation on the Biggest Economies in 2030.
It is worth mentioning, however, that the animation uses GDP (PPP) calculations instead of the nominal ones above.
Source: Visual Capitalist
Related Article: Defining Industries for the Global Supply Chain Economy
Supply Chain Management: Beyond the (Economic) Horizon White Papers
Managing the Complexity Paradigm
This paper offers insight into managing the supply chain and product complexity by providing background into the complexity’s sources, a framework for understanding its drivers, and methods to manage it Download Now!
Supply Chain Issues: What’s Keeping Supply Chain Managers Awake at Night?
Although some of the themes presented in this paper may not be surprising, it is valuable to note that the executives interviewed, who represented more than 50 different firms, shared a common perspective about issues disrupting their businesses. Download Now!
Creating Value Through Procurement and Sourcing Efforts in Integrated Supply Chains
As part of the ongoing collaboration between Michigan State University’s Eli Broad College of Business and APICS Supply Chain Council, the Beyond the Horizon research project is investigating how the supply chain management discipline is evolving into the future. Download Now!
Realizing Supply Chain Success
This white paper presents initial research insights from the Beyond the Horizons project and introduces a conceptual model, named the bridge model, which can guide supply chain strategy development and decision making. Download Now!
More Resources from Association for Supply Chain Management ASCM