In 2016, global GDP amounted to about 75.49 trillion U.S. dollars. Gross domestic product. Gross domestic product, also known as GDP, is the accumulated value of all finished goods and services produced in a country, often measured annually.
What is counted in GDP?
Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Only goods that are produced and sold legally, in addition, are included within our GDP. That means that goods produced illegally are not counted.
GDP (Nominal) Ranking 2018
|Rank||Country/economy||GDP per capita (Nominal) ($)|
Countries by GDP (nominal)
|Rank||Country||GDP (Millions of US$)|
The World's Top 10 Economies
- United States. The U.S. economy remains the largest in the world in terms of nominal GDP.
- China. China has transformed itself from a centrally-planned closed economy in the 1970s to a manufacturing and exporting hub over the years.
- United Kingdom.
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
The Eight Great Powers of 2017
- The United States of America. No surprise here: as it has for the last century, the United States remains the most powerful country on earth.
- China (tie)
- Japan (tie)
The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.
The Group of Seven (G7) is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
Russia has an abundance of oil, natural gas and precious metals, which make up a major share of Russia's exports. As of 2012 the oil-and-gas sector accounted for 16% of GDP, 52% of federal budget revenues and over 70% of total exports.
The gross world product (GWP) is the combined gross national product of all the countries in the world. The per capita PPP GWP in 2014 was approximately US$16,100 according to the World Factbook. According to the World Bank, the 2013 nominal GWP was approximately US$75.59 trillion.
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). Nominal value changes due to shifts in quantity and price.
GDP (Nominal) per capita Ranking 2018
Economy of the European Union
|GDP||$17.1 trillion (nominal; 2017) $20.9 trillion (PPP; 2017)|
|GDP growth||2.9% (2017)|
|GDP per capita||$36,700 (Nominal) (2017) $40,890 (PPP) (2017)|
|GDP by sector||Agriculture: 1.5% Industry: 24.5% Services: 70.7% (2016 est.)|
One way, called GDP at exchange rate, is when the currencies of all countries are converted into USD (United States Dollar). The second way is GDP (PPP) or GDP at Purchasing Power Parity (PPP).
The four components of gross domestic product are personal consumption, business investment, government spending and net exports. The formula to calculate the components of GDP is Y = C + I + G + X. That stands for: GDP = Consumption + Investment + Government + X (net exports, or imports minus exports.)
Does High GDP Mean Economic Prosperity? Economists traditionally use gross domestic product (GDP) to measure economic progress. If GDP is rising, the economy is in good shape, and the nation is moving forward. If GDP is falling, the economy is in trouble, and the nation is losing ground.
Purchasing power parity (PPP) is a neoclassical economic theory that states that the exchange rate between two countries is equal to the ratio of the currencies' respective purchasing power.
The global quantity of economic production observed within a given time frame. An increase in world output due to a generally favorable business environment can significantly boost the degree of international trade between countries as consumer demand also tends to increase globally.