World GDP and the Future

Photo by David McBee

Gross Domestic Product (GDP) measures the monetary value of all products and goods produced within a country’s border in a specific period of time. It calculates the total output of a nation. There are different types of GDP, such as Nominal GDP, Real GDP, and GDP per capita.

1. Nominal GDP focuses on the raw GDP without considering the inflation, only current prices. Therefore, it may not be a hundred percent accurate and may include overstated or understated economic growth. 

2. Real GDP calculates the actual economic growth regardless of price changes. The inflation is adjusted by using constant prices from a base year. It is an effective method of learning about economic growth without the impact of price changes. 

3. GDP per capita is the GDP divided by the total population of a country. It measures the standard of living and average economic output per person in that nation. 

Our today’s focus is, however, not on any of the above types of GDP. Here we will explain the World GDP. What it is, which countries contributed the most, and what it is expected to be in the forthcoming years.

What is World GDP?

The World GDP is when all the GDPs of countries are combined. It measures the total economic output of countries in a period of time, mostly within a year. Most of the time the world GDP is presented in nominal GDP which uses the present market prices and is not adjusted in inflation. 

How much was world GDP in the last decade?

Chart taken from the World Bank national accounts data and OECD National Accounts Data.

According to the World Bank provided data, the world in the last decade has seen a great increase in GDP. In 2013 the world GDP was $77.87 trillion, while in 2023, the world GDP was estimated to be $106.17 trillion. The official data for 2024 is not available yet, however it is estimated to be approximately 110 trillion US Dollar. 

Which countries contribute the most in the world GDP?

Here is the list of ten countries having the most contribution to the world GDP in 2023, according to the World Economic Outlook (October 2024):

No.	Country	GDP in USD (billions)
1	United States	29,167.779
2	China	18,273.357
3	Germany	4,710.032
4	Japan	4,070.094
5	India	3,889.130
6	United Kingdom	3,587.545
7	France	3,174.099
8	Italy	2,376.510
9	Canada	2,214.796
10	Brazil	2,188.42

The United States had the most contribution to the world GDP in the recent decades, and other countries followed behind. 

What are the forthcoming years expected to look like?

According to Global Economic Prospects, the global economic growth has become stable and ‘steady’ at 2.7 percent and will continue to do so in 2025-26. Although the global economy is still growing, the rate of slow paced growth may not be efficient. Most of the low-income countries are not expected to enter middle-income status by 2050, reports Global Economic Prospects. Additionally, the process of extreme poverty reduction is not going as planned and it is assumed that many of the defined goals will not be achieved. 

Furthermore, many of the developing economies are estimated to encounter harsher weathers with the rising geopolitical tensions, weak growth and investment, and climate changes, says Intermit Gill, the World Bank Group Chief Economist and Senior Vice President. He also includes that the coming 25 years may be more challenging for the developing economies than the last 25 years. 
Considering the current conditions, the need for new plans and solutions is mandatory.  

Written by M. Nargis