Gross world product. Gross world product: concept, calculation, indicators. GDP and GMP Global GDP

How to identify countries with a strong economy among the huge number of countries in the world? To identify highly developed countries, let's pay attention to the ratings - the results of comparative studies made by international experts and organizations to rank countries according to various indicators. Every year, studies are published showing which country has risen to the TOP, which has fallen. Consider the main indicators that determine which countries in 2019 became the most influential in the economic field, have the highest standard of living, prosperity and freedom.

Level of economic development

The level of economic development assesses the efficiency and maturity of the country's economy. It is not for nothing that only countries with a high level of economic development are included in the group of developed countries, while the rest are called developing. This level is determined by various ratings.

Country ranking by GDP

The key indicator is the level of gross domestic product (GDP). This is the name of the total value of goods, services and other results of the activities of enterprises, firms, companies, institutions, organizations, individuals. This is the result of the work of all residents of the country in question during the year. It is calculated in two ways. The first is when all the income received during the year is added up: interest, profit, salary, and so on. The second is when expenses are summed up (government purchases, investments, consumption, export minus imports). The official source of such information is the World Bank database. The statistics are updated every year and published in autumn. The indicator is also kept by the International Monetary Fund and the UN.

The backbone of the world's GDP is produced by only a few countries, mostly large in territory and population.

If all goods and services produced in monetary terms (GDP) is an absolute value, then by comparing the gross domestic product with the population, we get a relative indicator indicating the well-being of citizens.

According to the World Bank and the IMF, the United States of America has the best GDP indicators. Based on countries, the first places in this indicator are occupied by:

The presented table with indicators is an actual value that does not take into account the difference in prices for homogeneous goods and services. As a consequence of this omission, the GDP of developed countries is often overstated, while that of developing countries is lower.

Since purchasing power parity is more important, as it gives an idea of ​​the quality of life in the countries of the world, another rating based on PPP is more credible.

According to the International Bank, the level of GDP at PPP for the countries of the world is:

The International Bank estimates all the economies of the world with the exception of Syria (due to active hostilities), Somalia (since the state actually broke up into several separate parts) and Venezuela (domestic politics is extremely closed, it is impossible to accurately estimate the level of GDP by PPP).

economic freedom

The most important indicator of a country's development is the level (or index) of economic freedom. Since 1995, it has been defined by the American research center "Heritage Foundation" and published annually on its website and in the Wall Street Journal.

Based on the theories of Adam Smith, experts at the Heritage Foundation define economic freedom as the level of non-intervention by the state in the process of production, distribution and consumption, except in situations where it is necessary to protect citizens.

The index is calculated according to the arithmetic mean of ten criteria of freedom - property, absence of corruption, the government's share in regulating the economy, freedom of trade, investment, labor, entrepreneurship, monetary, fiscal, financial. For each of them, an evaluation scale is developed from 0 to 100 points, which are summed up as a result. The higher the score, the higher the level of economic freedom.

Thus, Hong Kong, Singapore, New Zealand, Australia, Ireland and Switzerland are considered countries with a free economy (from 80 points and above) in 2019.

As for the countries of the former USSR, in most cases the level of economic freedom in them is weak. Most states are characterized by the active influence of the state on all spheres of life, which often creates some inconvenience and hinders the free development of the economy.

As an example, here are data from 2 studies conducted in 2016 and 2019 for comparison:

Prosperity Rating

The economic achievements of the countries of the world are also measured by the level of prosperity. This indicator is offered by the English analytical center Legatum Institute. He has been calculating it since 2006. This index is determined by the level of social well-being of countries in the field of economic development, entrepreneurship, governance, health, security, education, personal freedoms and social capital. Each of the eight criteria is calculated on the basis of statistical research by the United Nations, the World Bank, sociological data from the Gallup Institute and other authoritative centers. According to the results of comparative studies, a rating of states is published annually. In 2019, such results were published for 142 countries of the world.

Norway, Switzerland, Denmark, New Zealand, Sweden, Canada, Australia, and the Netherlands have the best indicators on the prosperity index.

Other indicators

There are other indicators by which the rating of a country's economic development is measured. This is the level of GDP per capita. It is not considered a strict characteristic, but is considered an important indicator.

Recent studies of the level of GDP per capita (nominal) according to World Bank estimates show the following results:

A more accurate characteristic is the level of the same indicator in terms of parity (the ratio of several currencies) of purchasing power per capita to a certain set of services or goods.

Here the first places are occupied by:

The Human Development Index, which has been published in the reports of the United Nations Development Program since 1990, is another traditional comparative indicator of living standards and the economy. Norway, Australia, Switzerland, Netherlands, USA, Germany, New Zealand, Canada, Singapore, Denmark have a very high human development rating, according to the latest 2014 report.

Based on all these indicators, the world's strongest and most efficient economies for 2019 are:

2. Hong Kong

3. Australia

4. Germany

5. Switzerland

7. Netherlands

8. New Zealand

9. Singapore

10. Japan

Corruption Perceptions Index

Since 1996, the rating of the level of corruption has been recognized as the most important indicator of the state of the country's economy. The official name is the Corruption Perceptions Index. It was introduced by the international non-governmental organization Transparency International. It takes into account how widespread corruption is in the public sector. This ranking is calculated by analyzing surveys and statistical data. Corruption in the framework of the study refers to any extraction of personal gain through abuse of office.

Interestingly, the study is not based on the statistics of criminal cases or sentences, but on the opinion of those who suffer from corruption or study this phenomenon.

To determine this index, we developed a scale from zero to one hundred, where 0 means the maximum level of corruption, and 100 - its absence. Although the methodology by which the rating is determined is the object of criticism, in general it is recognized by experts as relatively reliable.

The most difficult situation with corruption is observed in the following countries:

Credit ratings

The economic "health" of the country is also assessed by financial or credit ratings. They are calculated taking into account the financial history of the state, the size of its property and the ability and desire to pay debts. Such an index is needed in order to make it clear to potential creditors or investors how safe it is to deal with the country. Financial ratings are assessed by international agencies. Moody's, Standard and Poor's and Fitch have the most serious reputation. They work all over the world and help to distinguish reliable partners from unreliable ones. Each of them has its own naming system, but in general, countries with a high degree of obligation are designated by the letter A, medium and lower - Ba, risky - B, high risk and close to default - C.

Index with a "human face"

The last few years have demonstrated the importance of such an indicator of economic development as social progress. The previous indicators corresponded to economic theories, but they did not show how the growth of the economy affects people's lives. Therefore, in 2013, the Social Progress Index was developed as an alternative to economic indicators. Its author is Harvard University professor Michael Porter. This rating is calculated based on the analysis of sociological survey data, expert opinions and statistical information from international organizations. Determining the achievements of each country in this area, the researchers took into account more than fifty factors.

1. This is the satisfaction of basic needs - food, water and medical care, housing, a degree.
2. Then the fundamental foundations of well-being are taken into account - access to education and information, the level of literacy and communication.
3. And, finally, development opportunities are analyzed - the level of protection of civil and political rights and self-realization is determined.

From the results of the studies we analyzed, it is clear that there is a direct relationship between economic freedom, financial security, standard of living, and social progress. Countries such as New Zealand, Australia, Canada, Switzerland, Norway, the Netherlands lead among those who provide their citizens with dignity and at the same time respect civil and political rights, and also pay their bills honestly. Little Asian "tigers": Singapore or Hong Kong, as well as oil "millionaires" (UAE, Qatar) are "ahead of the rest" in terms of economic freedom and per capita income. But countries with a strong and efficient economy - the USA, China, Japan, Great Britain, Germany - are distributed in different positions in the ranking, because. far from always being able to provide the people living there with a high level of income and opportunities for development.

How did the GDP of the world change from 1970 to 2016 in nominal and constant prices relative to 1970. This and many other interesting information you can read in this article. Where there is no data for 2016, data for 2013 is indicated and there is a mention of this.

For the period 1970-2016. World GDP increased from 3398.7 to 75212.7 and increased by 71817 billion US dollars or 22.13 times; the change occurred due to the increase in the world population from 3692 to 7456 million people, i.e. the population grew by 3764 million people. or 2.02 times relative to 1970. It also grew due to an increase in the GDP per capita in the world, which in 1970 was $921, and already in 2016 it was $10,167. The average annual growth of world GDP in this period amounted to 1561.2 billion dollars.

During 1970-2016 GDP per capita in the world increased by $9246 or 11.04 times to $10167. The average annual increase in GDP per capita in the world during this period amounted to $201 per year.

At constant prices by 1970, the picture looks like this. Here it should be said what constant prices are.

Fixed prices: The usual set of prices used to estimate the output of a firm or the economy as a whole in successive periods. The change in the real volume of activity in an enterprise or economy is measured by estimating the value of annual real inputs and outputs at constant prices. In the role of constants are prices for a certain date or average prices over a period. It is rather difficult to single out an appropriate set of constant prices, since the type and quality of goods are constantly changing. It is impossible to find out the price of a product in 1980 if this product appeared on sale only in 1990, or, conversely, the price of a product in 1990 if its sale was stopped in 1980. The longer the period under consideration, the greater the share of the total the value of which one has to face difficulties of this kind, and the less reliable are comparisons of income or output at constant prices.

So, constant GDP relative to 1970 prices increased from 3398.7 billion dollars. $ to 13487.4 billion dollars. $ in 2016. The growth amounted to 10088.7 billion dollars. $ or it grew 3.97 times.

GDP per capita in the world at constant prices relative to 1970 increased from $921 to $1823 in 2016. The growth was $902 or it grew 1.98 times. This means that the purchasing power of one inhabitant of the planet has almost doubled in 46 years.

GDP nominal world, billion dollars, 1970-2016

GDP nominal per capita in the world, dollars, 1970-2016, current prices

GDP nominal in the world by region

Share of regions in GDP nominal world, %, 2013

Top 30 countries by world GDP 1970-2016 (nominal / PPP)

Leading countries in GDP nominal value of the world 1970-2016

According to experts, our contribution to the global economy is gradually decreasing and urgent measures must be taken to change this trend. Today we will consider the place of Russia in the global economy in 2018, estimate GDP per capita, find out what the country exports, in what volumes, and who are our key foreign trade partners.

But first, I would like to summarize the results for 2017. An important victory can be called the fact that the country finally curbed inflation. At the end of 2017, it amounted to 2.5%. This is a record. The country has never seen such a minimum level of inflation in its entire recent history.

At the same time, the plans of the Central Bank had an inflation target of 4%, however, as we can see, the bar was exceeded. Prior to this, record low inflation was recorded in 2011, when prices rose by only 6.1%.

A positive trend is that the Russian currency has reduced its dependence on oil prices. Until quite recently, the ruble almost completely repeated the movement of black gold, rising in price with an increase in the price of oil and weakening with their fall. However, today the relationship between these two values ​​has decreased by more than 2 times. There are periods when these assets move in different directions at all.

Experts note the impact of the new budget rule on these processes. Its essence is that the Ministry of Finance buys foreign currency with the windfall profits received at an oil price of $40 or more.

But the next result of the past year cannot be called optimistic. Real disposable incomes of the population have continued to decline for several years in a row. Over the past year, they have decreased by another 1.7%.

Economic growth
Let's hope that the growth of the economy will ensure the growth of incomes of the population, although here there are few grounds for joy. According to the results of 2017, officials estimate GDP growth at the level of 1.4-1.8%. For a developing economy, such growth rates cannot be called satisfactory. For comparison, preliminary estimates in the US show that last year's GDP growth amounted to 2.5%.

To understand Russia's place in the world economy, it is enough to assess the contribution that the country's economy makes to world GDP. There are few reasons for optimism here. Our share is getting smaller every year.

TOP 15 countries by GDP (World Bank data)

In terms of GDP in current dollars, the country's economy is in 12th place. Although, since 1990, Russia's GDP has doubled, this has not been enough to take a significant position in the global economy. The country's share of world GDP is close to 1.7%. The US accounts for almost a quarter of the global economy.

TOP 15 countries in terms of GNI at PPP (data from the World Bank)

True, the volume of GDP in current dollars is not an entirely objective indicator. An indicator such as gross national income at purchasing power parity gives a more realistic picture of the world than GDP at par. Here, Russia is already in 6th place in the world. The country's contribution to the world economy is estimated at 2.75%. However, this is still not so much compared to the leaders. China's contribution to the global economy is at the level of 17.5%, the US - at the level of 15%.

If you look at the GDP PPP per capita, then for Russia the figure is just over 23 thousand dollars in 2016. In Kazakhstan it exceeds 25 thousand dollars, in the USA it is 57.6 thousand dollars, in Luxembourg - 103.5 thousand dollars.

Export
Assessing Russia's place in the world economy, one cannot but pay attention to the structure of domestic exports. For example, according to the Federal Customs Service for 2016, the country exported goods and raw materials worth $287.6 billion.

As you might have guessed, a significant share of our exports is raw materials. For example, deliveries of fuel and energy products (oil, gas, coal) to non-CIS countries accounted for 62% of all exports. Another 10% fell on metals and products from them.

7.3% is the supply of machinery and equipment, 6% is the share of chemical products in exports. Food accounts for 5% of exports, timber and paper products for 3.3%.

Import
From far-abroad countries in 2016, the country most often imported machinery and equipment. Their share in the commodity structure amounted to 50.2%. In second place with a share of 19% is the products of the chemical industry. The share of food was 12.5%.

Textiles and footwear are also actively imported into the country. The share was 5.8%. The share of imported metals and products from them is at the level of 5.3%.

Key foreign trade partners
The top three partners of Russia in 2016 were China, Germany, and the Netherlands. Trade with these countries amounted to 66.1 billion, 40.7 billion and 32.3 billion dollars, respectively. The USA, Italy, Japan, Turkey, Republic of Korea, France, Poland also got into the top 10.

The EU, which is the country's largest economic partner, accounts for almost 43% of Russian trade. The APEC countries (China, Japan, Korea) account for 30% of trade.

While the Russian economy is trying to find its place in the world, the country's citizens are suffering from a fall in real incomes, which has been going on for 6 years. The situation is saved only, which can be taken in 5 minutes and repaid from the first pay.

Fresh overview of the state of Russia in 2019

Gross world product (GMP) is the most important indicator that assesses the state and dynamics of the development of the entire world economy. In addition, the GMP shows the role of individual national economies and entire regions in the total world production.

World Economy: General Provisions

The world economy (synonymous with the world economy) is an integral, but at the same time mobile and constantly changing system, which consists of national economies connected by political and economic relations. The functioning of this system is subject to its own rules, laws and regulations. They regulate relations between countries and transnational companies.

The world economy is a special area of ​​scientific knowledge. Its main goal is to study the development and change in the level of both general production and the production of individual countries, as well as trends in consumption, exchange and distribution of life's goods.

Gross world product and GDP

Gross world product is the sum of all final services and goods that were produced by all national economies in one year. In other words, it is the sum of all GDP (Gross Domestic Product). Therefore, in order to correctly calculate the GMP, one needs to know the national GDP, which is calculated on the basis of the system of national accounts (abbreviation SNA).

The SNA was developed in the 1950s by UN economists to bring together the economic performance of various countries into a single, understandable system. The SNA is a generally accepted calculation scheme that transparently and unified reflects all the main indicators of production, use and distribution of income of individual national economies. Based on the data of the system of national accounts, a list of countries by GDP is compiled.

All states that are members of the UN and are members of the World Bank and the IMF undertake to systematically submit data on GDP calculated on the basis of the principles of the SNA. The first steps to introduce Russia into this system were taken as early as 1988. The system of national accounts is constantly being improved, while its main indicator is GDP, the depth of understanding of the general state of the economy (both a separate country and the world) and the trend of its further development depends on the accuracy of its calculation.

The GMP indicator is determined by summing up national GDP, which are calculated in three main ways: by income, by production, by expenditure. The results obtained are linked to each other and are included in the SNA, so their values ​​are usually identical. GDP is calculated by quarters and for the year. For economists, not only the value of the gross product is important, but also the dynamics of its change: growth or decline. It helps to make short-term and long-term forecasts.

GDP by income

It is the mathematical sum of all the income that a country received from the production of services and products over a certain period. Income includes:

• wages of hired workers;
• private business income;
• corporate profits;
• income from loan capital (interest on capital that participated in the production of GDP);
• income from rent (rental of real estate, land);
• deductions for depreciation to compensate for the depreciation of funds involved in the creation of GDP;
• indirect taxes that the state uses to generate income (VAT, various excises, as well as customs duties).

GDP by expenditure

All expenses for the purchase of products that were produced by the national economy for the estimated period of time are summed up. Expenditure items include:

GDP by manufacturing or by industry

It is the summed value added of all industries (industries) of the country for a certain period of time.

The added value of a particular industry is the difference between the cost of manufactured products and the costs of its production: taxes, salaries, deductions for depreciation. This method of calculating GDP clearly and in detail illustrates the contribution of individual national industries to the creation of the country's GDP.

An alternative way to calculate the VMP

To unify the data and simplify the calculations of GDP and GMP, a single currency unit is used - the US dollar. But the data obtained in this way does not claim to be perfect. The fact is that in countries with a weak economy, their own currency is too low against the dollar. In addition, in such states, a large share of the economy is in the shadow and cannot be correctly accounted for in the national GDP.

To offset this error, economists have developed a mechanism for determining GDP based on the calculation of the purchasing power parity of national currencies. To paraphrase, it reveals how much you can buy certain products and services in the country under study. The parity is calculated according to the generally accepted basket, which includes eight hundred services and goods, about three hundred investment goods and twenty construction projects.

This method allows you to look at the list of countries by GDP differently. An example for comparison: when calculating at the current dollar rate, the share in the world economy of Japan is 15.7%, China - 4.4%, India - 1.5%, but when calculated at purchasing power parity, the figures change dramatically, the share of countries in the GMP next: Japan - 8.4%, China - 12%, India - 4.1%.

VMP development dynamics

As already mentioned, the gross world product is a key indicator for understanding macroeconomic processes in world production and distribution of goods. GMP indicators accurately characterize the state of individual economies, countries and regions. By the rate of growth or decline, one can easily determine when the world economy or national economies were in periods of prosperity or crisis.

GMP dynamics shows the following stable trends:

1. The global economy is constantly growing.
2. The growth of national economies is different: developed countries increase GDP much more slowly than developing ones.
3. The countries of the Asian region, North Africa and the Middle East are developing especially rapidly.
4. The world economy is periodically shaken by crises. Thus, during the crisis that occurred in 2008-2009, GDP growth slowed down significantly even in rapidly developing Asian countries, while in the euro area countries, Japan and the United States, GDP dynamics was completely negative.
5. Although the crisis has been partially overcome, the likelihood of a slowdown in the growth of the GMP remains.
6. There is a movement towards the globalization of the market, national economies are strengthening mutual influence and ties.

Leaders among countries

The first place in the gross world product is confidently occupied by the US economy. According to the IMF, in 2016, the top ten economies in terms of national GDP (in trillions of dollars) and contribution to the world economy look like this:

• USA - 17.34;
• China - 10.35;
• Japan - 4.6;
• Germany - 3.87;
• Great Britain - 2.95;
• France - 2.83;
• Brazil - 2.34;
• Italy - 2.14;
• India - 2.05;
• Russia - 1.86.

Trends in the development of the world economy

Although there are now significant macroeconomic problems in a number of countries, leading economists and analytical agencies are making optimistic forecasts for the growth of the global economy in the near future. Moreover, experts believe that the main factor for growth will be the economies of developing countries, which will serve as a kind of locomotive for temporarily slowed down national economies.

Thus, the IMF predicts the growth of the Chinese economy is 6.5% in 2017 and 6% in 2018. In the US, growth is also expected, but less significant: 2.3% and 2.5%, respectively, in 2017 and 2018. Russia is now experiencing serious economic difficulties, which are largely due to political factors, but even in these conditions, experts predict a small, but still growth of the Russian economy: 1.1% and 1.2% in 2017 and 2018. The total gross world product, according to the IMF, will grow in 2017-2018 by 3.4 and 3.6 percent.