World GDP Share:Emerging Economies Surpass US
The chart above was created using World GDP data from the IMF, U.S. GDP data from the BEA via FRED, and 2008 forecasts from the IMF for world GDP and U.S. GDP. The U.S. share of world GDP fell below 26% in 2007 for the first time since 1996, and is expected to fall below 25% in 2008 (24.76%) for the first time since 1980.
Reason? The significant growth in the emerging market economies, especially in the last five years. The emerging economies surpassed the U.S. in 2007 for share of world GDP (see chart below): U.S. share fell to just below 26% vs. the emerging economies' share of 27.4%.