A lot has happened to the world economy over the last 35 years, as a result of the effects of economic liberalisation, globalisation and the rise of multi-national corporations, as you can see in the lovely little video.
Video: In 20 Seconds Watch The World Economy Evolve As A Living Organism Since 1980
This fascinating video from HowMuch.net, an American cost comparison website, focuses on the evolution of the global gross domestic product broken down over the last 35 years. It illustrates changes to each country’s contribution using annual data from the International Monetary Fund.
It won’t surprise you to see China’s rise and eventual dominance in Asia. The time series starts with Japan as the biggest Asian economy by far, with output greater than all Asian countries combined. At the beginning of the Lost Two Decades (1991-2010), Japan is the second biggest economy in the world, reaching a height of 17.4 per cent of the global economy in 1994. By the end of this challenging period in Japanese history, it gets easily and clearly surpassed by the emerging Chinese giant.
Interestingly, North America has two separate peaks. The first is in 1985 when it peaks at 40.1 per cent of global output. It subsequently recedes to a trough of 28.1 per cent a decade later. Then, just after the Dotcom crash in 2001, it peaks again at 36.6 per cent of worldwide gross domestic product. Today, it sits at around 28 per cent.
Nearly $60 Trillion Of World Debt In A Single Illustration
The illustration above reveals the $59.7 trillion of world debt by country. The information comes from the International Monetary Fund and only covers public government debt. It excludes the debt of each country’s citizens and its businesses.
Here are four points that spring from the illustration:
- The United States constitutes 23.3 per cent of the world economy but it’s responsible for creating 29.1 per cent of world debt. Its debt-to-gross domestic product ratio is 103.4 per cent using International Monetary Fund figures, making it technically insolvent.
- Japan makes up only 6.18 per cent of total economic production, but has amounted 19.99 per cent of global debt.
- China, the world’s second largest economy (and largest by other measures), accounts for 13.9 per cent of production. It has only 6.25 per cent of world debt and a debt-to-gross domestic product ratio of 39.4 per cent.
- 7 of the 15 countries with the most total debt are European. Together, excluding Russia, the European continent holds over 26 per cent of total world debt.
Combining the debt of the United States, Japan, and Europe together accounts for 75 per cent of total world debt.
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