The Economist produced a graph showing world GDP data and made the following points:
- India and China account for 65% of world growth
- Emerging markets contributions in 2016 were down to its lowest figure since 2008 – falling commodity prices would have been a factor
- Norway contributed less to global GDP with lower oil prices being prevalent.
- USA with increased government spending and greater export volumes improved its position
- Brazil has been in negative territory since mid 2014 – interesting point with significant government spending on hosting the Football World Cup and the Olympics.
Maybe a good starter for your classes asking the question who contributes most to world GDP?
The Economist produced an excellent graphic on the contribution to global growth over the last 5 years. Points to note:
- World economy grew by 2.7% in early 2016
- Brazil, Russia, India and China contribution to global growth rose from 1.4% t0 1.6% over the last year
- Although Britain has contributed the most to GDP growth in the EU, the decision to leave the EU has forecasters predict that GDP in the Union will be 1% lower in 2018
- Emerging economies continue to dominate world growth and are essential for jobs etc.
- From growth of around 4.5% in 2010 the global economy has stuttered along reaching just over 2.5% in the first half of 2016
Here is an image from The Economist which shows how the global economy is very reliant on China. Some key points from the graph:
* Since 2010 China has contributed 35% of global growth
* Developing economies overall have contributed over 70% of global growth during the same period.
* Developed economies are responsible for approximately 25%