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World economy facts for kids

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World GDP per capita 1500 to 2003
World GDP per person between 1500 and 2003

The world economy or global economy is like a giant network of all the money-related activities happening on Earth. It includes everything people do to make, buy, sell, and manage goods and services across all countries. Think of it as all the jobs, businesses, and trading that connect everyone around the globe.

Sometimes, people talk about the "international economy" to mean how countries trade with each other. But the "world economy" usually means adding up all the economies of every single country. It's a huge system that is connected to our planet's geography and ecology.

We usually measure the world economy using money. Even for things that don't have a clear price, like goods sold illegally, economists try to estimate their value. When comparing different countries, economists don't just use the official exchange rate (how much one country's money is worth in another). Instead, they use something called purchasing power parity (PPP). This helps them compare how much people can actually buy with their money in different places. For example, a dollar might buy more in one country than another.

For a long time, countries like China and India had the biggest economies. India was the world's largest economy for over 1,700 years! But then, the Industrial Revolution in Europe and North America changed things, and Western countries became more powerful economically. As of 2024, many countries have very large economies, including the United States, China, Germany, Japan, and India.

In 2020, the global economy actually shrank by 3.4% because of the COVID-19 pandemic. Cities, which produce a lot of the world's wealth, were hit especially hard. But in 2021, the world economy started to grow again, bouncing back by about 5.5%.

How the World Economy Works

The world economy is made up of many different parts. We can look at it by grouping countries together or by continents.

Countries Grouped by Economy Size

Countries are often grouped by how developed their economies are. Here's a look at some major groups and their economic size in 2024:


Country group GDP (nominal)
in 2024
GDP (PPP)
in 2024
Number of
countries
Major economies
Value
(in millions of US$)
Share of
Global GDP
Value
(in millions of US$)
Share of
Global GDP
Major advanced economies (G7)
(Continents: Europe, North America and Asia)
48,678,121 44.5% 55,025,255 29.6% 7  United States
 Japan
 Germany
 United Kingdom
 France
 Italy
 Canada
Emerging and developing Asia
(Continents: Asia and Oceania)
26,686,077 24.4% 63,318,654 34.1% 30  China
 India
 Indonesia
 Thailand
 Bangladesh
 Vietnam
 Philippines
 Malaysia
Other advanced economies
(advanced economies excluding the G7)
(Continents: Europe, Asia, Oceania and North America)
15,134,208 13.8% 20,390,379 11.0% 34  South Korea
 Spain
 Taiwan
 Australia
 Netherlands
 Switzerland
 Belgium
 Singapore
 Sweden
 Ireland
 Norway
 Austria
Latin America and the Caribbean
(Continents: South America and North America)
7,004,688 6.4% 13,364,843 7.2% 33  Brazil
Flag of Mexico.svg Mexico
 Argentina
 Colombia
Emerging and developing Europe
(Continents: Europe and Asia)
5,164,278 4.7% 13,793,802 7.4% 15  Russia
 Turkey
 Poland
 Romania
Middle East and Central Asia
(Continents: Asia and Africa)
4,965,982 4.5% 13,933,205 7.5% 32  Saudi Arabia
 Egypt
 Iran
 Pakistan
 United Arab Emirates
 Algeria
 Kazakhstan
Sub-Saharan Africa
(Continent: Africa)
1,895,862
(peaked at 2,011,398 in 2022)
1.7% 5,850,984 3.2% 45  Nigeria
 South Africa
World 109,529,216 100.0% 185,677,122 100.0% 196

World Economy by Continent

The economy of the world can also be broken down by continents. This shows how much each continent contributes to different types of economic activities like farming (agricultural), making things (industrial), and providing services (service).

Continent Agricultural Industrial Service
World 7,908.260 38,354.363 81,575.461
Asia 5,105.362 20,858.549 32,939.397
North America 292.467 5,008.594 18,426.200
Europe 838.199 8,175.402 20,598.902
South America 539.510 2,014.140 5,024.223
Africa 1,076.690 1,941.037 3,559.579
Oceania 56.032 356.641 1,027.160

Largest Economies in the World

Here are the top economies based on their GDP (the total value of goods and services produced) in different ways.

Top Economies by Nominal GDP

This table shows the 25 largest economies based on their nominal GDP, which is measured using current market prices.

The 25 largest economies by GDP (nominal) and by GDP (PPP) as of 2024.
List of the 25 largest economies
by GDP (nominal) at their peak level as of 2024 in million US$
List of the 25 largest economies
by GDP (PPP) at their peak level as of 2024 in million Int$
List of the 28 economies by highest
GDP (nominal) per capita at their peak level as of 2024 in US$
List of the 28 economies by highest
GDP (PPP) per capita at their peak level as of 2024 in Int$'
Rank Country Value Peak year
World 109,529,216 2024
1  United States 28,781,083 2024
 European Union 19,226,235 2008
2  China 18,532,633 2024
3  Japan 6,272,363 2012
4  Germany 4,591,100 2024
5  India 3,937,011 2024
6  United Kingdom 3,495,261 2024
7  France 3,130,014 2024
 African Union 2,980,015 2022
8  Brazil 2,616,156 2011
9  Italy 2,408,655 2008
10  Russia 2,292,470 2013
11  Canada 2,242,182 2024
12 Flag of Mexico.svg Mexico 2,017,025 2024
13  South Korea 1,818,432 2021
14  Australia 1,790,348 2024
15  Spain 1,647,114 2024
16  Indonesia 1,475,690 2024
17  Netherlands 1,142,513 2024
18  Turkey 1,113,561 2024
19  Saudi Arabia 1,108,572 2022
20  Switzerland 938,458 2024
21  Poland 844,623 2024
22  Taiwan 802,958 2024
23  Belgium 655,192 2024
24  Argentina 654,892 2023
25  Iran 644,036 2012
Rank Country Value Peak year
World 185,677,122 2024
1  China 35,291,015 2024
2  United States 28,781,083 2024
 European Union 26,308,203 2024
3  India 14,594,460 2024
 African Union 9,490,335 2024
4  Japan 6,720,962 2024
5  Germany 5,686,531 2024
6  Russia 5,472,880 2024
7  Indonesia 4,720,542 2024
8  Brazil 4,273,668 2024
9  United Kingdom 4,029,438 2024
10  France 3,987,911 2024
11  Turkey 3,831,533 2024
12 Flag of Mexico.svg Mexico 3,434,224 2024
13  Italy 3,347,103 2024
14  South Korea 3,057,995 2024
15  Spain 2,516,376 2024
16  Canada 2,472,227 2024
17  Saudi Arabia 2,354,392 2024
18  Egypt 1,898,538 2024
19  Iran 1,854,845 2024
20  Poland 1,800,540 2024
21  Taiwan 1,792,349 2024
22  Australia 1,791,358 2024
23  Thailand 1,644,322 2024
24  Pakistan 1,642,572 2024
25  Bangladesh 1,619,803 2024
Rank Country Value Peak year
1  Monaco 240,862 2022
2  Liechtenstein 197,505 2021
3  Luxembourg 134,925 2021
4  Bermuda 118,775 2022
5  Ireland 106,059 2024
6  Norway 108,729 2022
7  Switzerland 105,669 2024
8  Qatar 101,933 2012
9  Cayman Islands 99,625 2022
10  Isle of Man 91,881 2014
11  Macau 90,874 2014
12  Singapore 88,447 2024
13  United States 85,373 2024
14  Iceland 84,594 2024
15  San Marino 79,110 2008
16 Channel Islands Channel Islands 75,148 2022
17  Denmark 69,467 2021
18 Flag of the Faroe Islands.svg 69,108 2021
19  Australia 68,486 2012
20  Netherlands 63,750 2024
21  Sweden 61,418 2021
22  Austria 59,225 2024
23  Greenland 57,116 2021
24  Canada 55,613 2022
25  Kuwait 55,596 2008
26  Belgium 55,536 2024
27  Finland 55,127 2024
28  Israel 54,931 2022
Rank Country Value Peak year
1  Qatar 169,698 2012
2  Macau 149,422 2013
3  Luxembourg 146,457 2022
4  Ireland 133,895 2024
5  Singapore 133,737 2024
6  Norway 121,259 2022
7  United Arab Emirates 110,213 2004
8  Bermuda 95,869 2022
9  Switzerland 91,932 2024
10  Kuwait 91,485 2007
11  Brunei 88,312 2012
12  San Marino 86,989 2024
13  United States 85,373 2024
14  Cayman Islands 84,280 2022
15  Guyana 80,137 2024
16  Denmark 77,954 2022
17  Taiwan 76,858 2024
18  Hong Kong 75,128 2024
19  Netherlands 74,542 2022
20  Iceland 73,784 2024
21  Austria 70,976 2022
22  Saudi Arabia 70,333 2024
23  Sweden 69,177 2024
24  Andorra 69,146 2024
25  Belgium 68,253 2022
26  Malta 67,682 2024
27  Germany 67,245 2024
28  Australia 66,627 2024

Twenty Largest Economies Over Time (Nominal GDP)

This table shows how the top 20 largest economies (by nominal GDP) have changed over the years.

The following is a list of the twenty largest economies by nominal GDP at peak value as of the specific year, according to the International Monetary Fund.
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2029
1  United States  United States  United States  United States  United States  United States  United States  United States  United States  United States  United States
2  Japan  Japan  Japan  Japan  Japan  Japan  China  China  China  China  China
3  Soviet Union  Soviet Union  West Germany  Germany  Germany  Germany  Japan  Japan  Japan  Japan  India
4  West Germany  West Germany  France  France  United Kingdom  United Kingdom  Germany  Germany  Germany  Germany  Japan
5  France  France  United Kingdom  United Kingdom  France  China  United Kingdom  United Kingdom  United Kingdom  India  Germany
6  United Kingdom  United Kingdom  Soviet Union  Italy  Italy  France  France  France  France  United Kingdom  United Kingdom
7  Italy  Italy  Italy  Brazil  China  Italy  Italy  Brazil  India  France  France
8  China  Canada  Canada  China  Brazil  Canada  Brazil  Italy  Brazil  Brazil  Brazil
9  Canada  China  Iran  Spain  Canada  Spain  Russia  Russia  Italy  Italy  Canada
10 Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico  Spain  Canada Flag of Mexico.svg Mexico  South Korea  India  India  Russia  Canada  Italy
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2029
11  Argentina  Argentina  Brazil  Iran  Spain Flag of Mexico.svg Mexico  Spain  Canada  Canada  Russia Flag of Mexico.svg Mexico
12  Spain  India  China  South Korea  South Korea  Brazil  Canada  Spain  South Korea Flag of Mexico.svg Mexico  Russia
13  Netherlands  Spain  Australia  Russia  Iran  India  Australia  Australia  Australia  Australia  Australia
14  India  Brazil  Netherlands Flag of Mexico.svg Mexico  Russia  Russia  South Korea  South Korea  South Korea  South Korea  Indonesia
15  Saudi Arabia  Australia Flag of Mexico.svg Mexico  Netherlands  India  Australia Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico  Spain  South Korea
16  Australia  Netherlands  India  Australia  Netherlands  Netherlands  Netherlands  Turkey  Indonesia  Indonesia  Spain
17  Brazil  Saudi Arabia  South Korea  India  Australia  Iran  Turkey  Netherlands  Turkey  Netherlands  Saudi Arabia
18  Sweden  Iran  Switzerland  Switzerland  Switzerland  Turkey  Indonesia  Indonesia  Netherlands  Saudi Arabia  Netherlands
19  Belgium  Nigeria  Sweden  Argentina  Argentina  Switzerland  Switzerland  Saudi Arabia  Saudi Arabia  Turkey  Turkey
20  Switzerland  Sweden  Argentina  Belgium  Taiwan  Sweden  Iran  Switzerland  Switzerland  Switzerland  Switzerland

Twenty Largest Economies Over Time (PPP)

This table shows the top 20 largest economies based on purchasing power parity (PPP), which gives a better idea of how much people can actually buy in different countries.

List of twenty largest economies by GDP based on purchasing power parity at peak value as of the specific year according to the International Monetary Fund and the CIA World Factbook.
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2029
1  United States  United States  United States  United States  United States  United States  United States  United States  China  China  China
2  Soviet Union  Soviet Union  Soviet Union  Japan  China  China  China  China  United States  United States  United States
3  Japan  Japan  Japan  China  Japan  Japan  India  India  India  India  India
4  West Germany  West Germany  West Germany  Germany  Germany  India  Japan  Japan  Japan  Japan  Japan
5  Italy  Italy  Italy  Russia  India  Germany  Germany  Germany  Germany  Germany  Indonesia
6  France  France  China  India  France  Russia  Russia  Russia  Russia  Russia  Germany
7  Brazil  Brazil  France  Italy  Italy  France  Brazil  Brazil  France  Indonesia  Russia
8  United Kingdom  United Kingdom  India  France  Russia  Brazil  France  United Kingdom  United Kingdom  Brazil  Brazil
9 Flag of Mexico.svg Mexico  India  United Kingdom  Brazil  United Kingdom  United Kingdom  United Kingdom  France  Indonesia  United Kingdom  Turkey
10  Saudi Arabia  China  Brazil  United Kingdom  Brazil  Italy  Italy  Indonesia  Brazil  France  United Kingdom
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2029
11  India Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico  Indonesia Flag of Mexico.svg Mexico  Italy  Turkey  France
12  China  Saudi Arabia  Spain  Indonesia  Indonesia  Indonesia Flag of Mexico.svg Mexico  Italy Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico Flag of Mexico.svg Mexico
13  Spain  Canada  Canada  Spain  Spain  Spain  South Korea  Turkey  Turkey  Italy  Italy
14  Canada  Spain  Indonesia  Saudi Arabia  Canada  South Korea  Spain  South Korea  South Korea  South Korea  South Korea
15  Iran  Iran  Saudi Arabia  Canada  South Korea  Canada  Saudi Arabia  Saudi Arabia  Spain  Spain  Saudi Arabia
16  Indonesia  Indonesia  Turkey  South Korea  Saudi Arabia  Saudi Arabia  Iran  Spain  Canada  Canada  Spain
17  Argentina  Turkey  Iran  Turkey  Turkey  Iran  Canada  Canada  Saudi Arabia  Saudi Arabia  Canada
18  Poland  Australia  South Korea  Iran  Iran  Turkey  Turkey  Iran  Iran  Egypt  Egypt
19  Netherlands  Netherlands  Australia  Australia  Australia  Australia  Australia  Egypt  Australia  Iran  Bangladesh
20  Turkey  Argentina  Netherlands  Thailand  Netherlands  Thailand  Taiwan  Australia  Poland  Poland  Vietnam

Key Economic Measures

Money and Wealth

Map of countries by GDP (PPP) per capita in 2021
Countries or territories by GDP (PPP) per capita in 2021.
     >$60,000      $50,000 – $60,000      $40,000 – $50,000      $30,000 – $40,000      $20,000 – $30,000      $10,000 – $20,000      $5,000 – $10,000      $2,500 – $5,000      $1,000 – $2,500      <$1,000      No data
Countries by total wealth (trillions USD), Credit Suisse
Countries by total wealth (trillions USD), Credit Suisse
  • GDP (GWP) (Gross World Product): This is the total value of all goods and services produced by every country in the world combined. It's like adding up the GDP of all countries. In 2017, the GWP was about $80.27 trillion.
  • GDP per person (PPP): This measures the average economic output for each person, adjusted for purchasing power. In 2017, it was about $17,500 per person.
  • GDP Growth Rate: This shows how fast economies are growing.

* Developed Economies: These are countries with strong economies and advanced technology. Their GDP growth was expected to be around 2.0% in 2018. * Developing Countries: These countries are still building their industries and improving their living standards. Their GDP growth was expected to rise to 4.6% in 2018. * Least Developed Countries (LDCs): These are countries with the lowest levels of development. Their GDP growth was predicted to improve to 5.4% in 2018.

  • Inflation Rate: Inflation means that prices for goods and services are generally going up over time. This means your money buys less than it used to.

* Globally, inflation was around 2.6% in 2017. * In developed countries, inflation is usually low (1% to 4%). * In developing countries, it can be much higher (5% to 60%). * For the least developed countries, inflation was 11.4% in 2017.

  • Global Aid: This is money given by richer countries to help poorer ones. In 2022, about $204 billion was given as international aid.

Jobs and Work

World GDP Per Capita 1500 to 2000, Log Scale
World GDP per person between 1500 and 2000 (log scale)
World GDP per capita 1500 to 2003
World GDP per person between 1500 and 2003
Gdp accumulated change
GDP increase, 1990–1998 and 1990–2006, in major countries
  • Unemployment Rate: This is the percentage of people who want to work but cannot find a job. In 2009, the world unemployment rate was estimated at 8.7%. In many non-industrialized countries, unemployment and underemployment (not enough work) combined could be as high as 30%.

Energy Use

Global primary energy consumption, OWID
Global primary energy consumption, measured in terawatt-hours (TWh) per year
  • Electricity Production: The world produced about 21,080,878 GWh of electricity in 2011.
  • Oil Production and Consumption: In 2003, the world produced about 79.65 million barrels of oil per day and consumed about 80.1 million barrels per day.
  • Natural Gas: In 2012, the world produced about 3,366 cubic kilometers of natural gas.

Global Trade

  • Exports: In 2009, countries around the world exported goods and services worth about $12.4 trillion.
  • Imports: In the same year, countries imported goods and services worth about $12.29 trillion.
  • External Debt: This is the total amount of money that countries owe to foreign lenders. In 2009, this debt was estimated at $56.9 trillion.

Communication and Travel

  • Telephones: In 2007, there were over 843 million landline phones and 3.3 billion mobile phones in use worldwide.
  • Internet Users: By the end of 2014, over 3 billion people were using the internet.
  • Airports: In 2013, there were 41,821 airports around the world.
  • Roads: In 2002, there were over 32 million kilometers of roads globally, with about 19.4 million kilometers paved.
  • Railways: The world has over 1.1 million kilometers of railway tracks.

Military Spending

Military Expenditures by Country 2019
A pie chart showing global military expenditures by country for 2019, in US$ billions, according to SIPRI.
  • In 2018, the world spent an estimated $1.822 trillion on military expenses. This was about 2% of the total world economy in 1999.

Science and Research

Scientific and technical journal publications per million residents, OWID
Number of scientific or technical journal article publications per million residents as of 2013.

Countries invest in research and development (R&D) to create new technologies and ideas. In 2015, R&D spending was about 2.2% of the global GDP. The United States, China, and the UK are among the top countries for scientific research papers.

Resources and the Environment

8000 BCE+ Loss of forest and grassland to grazing and crops
Since 1950, humans have greatly changed the natural world. By 2018, about 30% of forests and 68% of grasslands were lost to farming and raising animals.

Our economic activities have a big impact on the Earth's natural resources and environment.

  • Forests: Forests are important for absorbing carbon and providing wood. As of 2021, about 10 billion trees are lost each year. Between 2015 and 2020, 10 million hectares of forest were lost annually.
  • Soil: Healthy soil is vital for growing food. However, about 36 billion tons of soil were lost to erosion by water in 2012. This soil loss can cost about $8 billion in lost farm production each year.
  • Plastic Pollution: Around 380 million tonnes of plastic are made worldwide every year. A lot of this plastic ends up in landfills or pollutes our natural environment, including the oceans.
  • Air Pollution: Air pollution causes about 7 million deaths each year globally. The estimated cost of air pollution worldwide is $5 trillion annually.
  • Microplastic Pollution: Tiny plastic pieces, called microplastics, are found in our oceans. In 2014, the North Atlantic Ocean was estimated to have 15 to 51 trillion microplastic particles.

How the World Economy Has Changed

2010.09.27-LSE-Research-Danny.Quah-Map
Shift of the world's economic center of gravity since 1980 and projected until 2050

The world economy has grown a lot over thousands of years. Here's a look at how the world's population and economic output (GDP) have changed over time:

Estimations of world population and GDP from a 2020 research paper
Year Population
(million)
GDP per capita
($1990 in PPP)
GDP in billion
($1990 in PPP)
1000000 BCE 0.125 400 0.05
300000 BCE 1 400 0.40
25000 BCE 3.34 400 1.34
10000 BCE 4 400 1.60
5000 BCE 5 404 2.02
4000 BCE 7 409 2.87
3000 BCE 14 421 5.90
2000 BCE 27 433 11.7
1000 BCE 50 444 22.2
500 BCE 100 457 45.7
200 BCE 150 465 69.7
1 168 467 78.4
200 190 463 88.0
400 190 463 88.0
500 190 463 88.0
600 200 462 92.3
700 210 460 96.6
800 220 459 101
900 240 456 109
1000 265 453 120
1100 320 512 164
1200 360 551 198
1300 360 551 198
1400 350 541 190
1500 438 625 274
1600 556 629 350
1700 603 658 397
1820 1,042 712 741
1870 1,276 884 1,128
1900 1,563
1913 1,793 1,543 2,767
1920 1,863
1940 2,299 2,181 5,013
1950 2,528 2,104 5,318
1960 3,042 2,764 12,170
1970 3,691 3,725 13,751
1980 4,440 4,511 20,026
1990 5,269 5,149 27,133
2000 6,077 6,057 36,806
2010 6,873 7,814 53,704
2019 7,620 9,663 73,640

More About the World Economy

Many government groups and organizations study the world economy to help businesses trade internationally. They publish reports about different industries and countries.

See also

Regional economies:

  • Economy of Africa
  • Economy of Asia
  • Economy of Europe
  • Economy of North America
  • Economy of Oceania
  • Economy of South America

Events:

Lists:

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