How big is the world’s economy? - October 28, 2018

How big is the world’s economy?

The GDP of the world totals up to $80 trillion. Unsurprisingly, the vast majority of this production is centered around important hubs on every continent. Some changes may come to the leaders, but the giants are holding their places. But how much money is $80 trillion? It would take Apple more than 300 years to have that much sales.

According to the latest numbers of the World Bank, the economy of the world adds up to a whopping $80 trillion. This huge sum isn’t evenly distributed around the globe but more around centers on every continent.

The biggest economies of the World

The main centers of economical production aren’t that surprising. The USA not only tops its continent’s list, but it also leads the global chart. The United States is followed by Asia’s leader: China. What’s surprising, though, is that the top 2 have a breathtaking lead over the rest, as it can be seen from our chart that compares the size of the biggest economies to each other. Together they represent almost 40% of the global GDP.

Top 20 Biggest World Economies by GDP

Click on the image to see it in full resolution

Japan also has a leading role in Asia, while Germany, the United Kingdom and France leads Europe’s top list. It’s important to see though, that the European Union’s combined GDP is above $17 trillion, which makes the union a global leader, beating China. If the numbers don’t change significantly in the near future, the EU could hold its lead before China after the Brexit, but not by much.

Will the ranks change?

The list always changes year by year. HowMuch.net visualized the biggest economies, too. They do this every year and found interesting things: "India’s economy surpassed France to become the 6th biggest in the world. The UK was the only economy to shrink among the top ten, dropping from $2.86 trillion to $2.62 trillion”, they wrote.

They also mention that the US is still the biggest and they also managed to grow their share of global economy by 0.8%. China also managed to do the same, they are "accounting for 15.4% of the world’s GDP, up from 14.84%”. “In short and in general, the world’s heavyweight economies continue to reign supreme”, they conclude from the year by year data.

Although the list isn’t changing rapidly, the trade war between the USA and the rest of the world (mostly China) can have serious effects on the economic output of the world in the future.

How much is $80 trillion?

Reading about these huge numbers, it’s hard to see how much this value is that the world produces in a single year. To understand this better, we compared the $80 trillion world GDP to the sales of the biggest publicly traded companies of the world according to Forbes’ Global 2000 list. The world GDP would be 100% on this chart and the sales of the companies are compared to that.

Sales of the biggest publicly traded companies compared to the GDP of the World

Click on the image to see it in full resolution

We can see from Forbes’ list that the top 2000 company on their list adds $39.1 trillion to the global GDP. The top 10 (seen on our chart) adds 1.88% of the global production. But to put $80 trillion to a better context: it would take Apple 323 years to create the world GDP alone. The Apple that is the biggest company of the world and it hit the $1 trillion market capitalization not long ago.

Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.