Gross world product facts for kids
The Gross World Product (GWP) is like adding up all the money earned by every country in the world. It's the total value of all the goods and services produced by all countries. Think of it as the world's total income!
Because what one country exports, another country imports, when you look at the whole world, imports and exports cancel each other out. This means the GWP is also the same as the total global gross domestic product (GDP).
What is Gross World Product?
The Gross World Product (GWP) measures the total value of everything produced globally. This includes all the goods, like cars and food, and all the services, like teaching or healthcare. It's a way to see how much the world's economy is growing.
How GWP is Measured
GWP is often measured in US dollars. There are a few ways to look at these numbers:
- Nominal GWP: This is the GWP measured using current market prices. It doesn't adjust for changes in prices over time (like inflation).
- Purchasing Power Parity (PPP): This way of measuring GWP tries to compare economies more fairly. It adjusts for the fact that money can buy different amounts of goods and services in different countries. For example, a dollar might buy more in one country than in another. PPP helps us compare the real "buying power" across the world.
GWP Numbers Over Time
The GWP changes each year as the world economy grows.
- In 2013, the nominal GWP was about US$75.59 trillion. A trillion is a very big number – it's a 1 followed by 12 zeros!
- By 2017, the nominal GWP had grown to around US$80.27 trillion.
- In terms of purchasing power parity (PPP), the GWP in 2017 was even higher, about 127.8 trillion international dollars. This shows the true buying power of the world's economy.
GWP Per Person
We can also look at the GWP per capita. "Per capita" means "per person." This tells us the average amount of GWP for each person on Earth.
- In 2017, the GWP per person, using the PPP method, was about Int$17,500. This gives us an idea of the average economic output per person globally.
