Category: us gdp

The $100 Trillion Global Economy in One Chart

This post is by Avery Koop from Visual Capitalist

This infographic visualizes the 100 trillion global economy by country GDP

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Visualizing the $100 Trillion Global Economy in One Chart

Surpassing the $100 trillion mark is a new milestone for global economic output.

We’ve covered this topic in the past when the world’s GDP was $88 trillion (2020) and then $94 trillion (2021), and now according to the latest projections, the IMF expects the global economy to reach nearly $104 trillion in nominal value by the end of 2022.

Although growth keeps trending upwards, the recovery that was expected in the post-pandemic period is looking strained. Because of recent conflicts, supply chain bottlenecks, and subsequent inflation, global economic projections are getting revised downwards.

Global annual GDP growth for 2022 was initially projected to be 4.4% as of January, but this has since been adjusted to 3.6%.

Note: This data from the IMF represents the most recent nominal projections for end of year as of April 2022.

ℹ Gross Domestic Product (GDP) is a broad indicator of the economic activity within a country. It measures the total value of economic output—goods (Read more...)

Visualizing the $94 Trillion World Economy in One Chart

This post is by Dorothy Neufeld from Visual Capitalist

View the expanded version of this infographic.

Global GDP by Country 2021

The $94 Trillion World Economy in One Chart

View the expanded version of this infographic.

Just four countries—the U.S., China, Japan, and Germany—make up over half of the world’s economic output by gross domestic product (GDP) in nominal terms. In fact, the GDP of the U.S. alone is greater than the combined GDP of 170 countries.

How do the different economies of the world compare? In this visualization we look at GDP by country in 2021, using data and estimates from the International Monetary Fund (IMF).

An Overview of GDP

GDP serves as a broad indicator for a country’s economic output. It measures the total market value of final goods and services produced in a country in a specific timeframe, such as a quarter or year. In addition, GDP also takes into consideration the output of services provided by the government, such as money spent on defense, healthcare, or education.

Generally speaking, when GDP is increasing in a country, it is a sign of greater economic activity that benefits workers and businesses (while the reverse is true for a decline).

The World Economy: Top 50 Countries

Who are the biggest contributors to the global economy? Here is the ranking of the 50 largest countries by GDP in 2021:

RankCountryGDP ($T)% of Global GDP
1?? U.S.$22.924.4%
2?? China$16.917.9%
3?? Japan$5.15.4%
4?? Germany$4.24.5%
5?? UK$3.13.3%
6?? India$2.9 (Read more...)

The Buffett Indicator at All-Time Highs: Is This Cause for Concern?

This post is by Carmen Ang from Visual Capitalist

The Buffett Indicator - Stock Market Value to GDP

Buffett Indicator at All-Time Highs: A Cause for Concern?

In 2001, Warren Buffett famously described the stock market capitalization-to-GDP ratio as “the best single measure of where valuations stand at any given moment.”

This ratio, now commonly known as the Buffett Indicator, compares the size of the stock market to that of the economy. A high ratio indicates an overvalued market—and as of February 11, 2021, the ratio has reached all-time highs, indicating that the U.S. stock market is currently strongly overvalued.

Today’s graphic by Current Market Valuation (CMV) provides an overview of how the Buffett Indicator has changed since 1950. We’ll also explain how the ratio is calculated, and why things might not be as dire as seem.

The Buffet Indicator, Explained

Before diving into the data, let’s cover the basics—what is the Buffett Indicator, and how is its value calculated?

The Buffett Indicator is a ratio used by investors to gauge whether the market is undervalued, fair valued, or overvalued. The ratio is measured by dividing the collective value of a country’s stock market by the nation’s GDP.

Measuring Total Value

CMV used the Wilshire 5000 index, along with data from the Federal Reserve for historical data, to measure the collective value of the U.S. stock market. Here’s a look at the nation’s composite market value since 1950:

US Market Value since 1950

As the chart indicates, the market’s experienced steady growth since 2010. And as of February 11, 2021, its total value sits at $49.5T.

Measuring GDP

For the data on (Read more...)