Chart of the Day: World Shares of GDP
The USDA recently updated its international macroeconomic data set with world and country GDP data estimates for 2011. Here are some observations:
1. The chart above of world GDP shares (data here) from 1969 to 2011 shows America's amazingly stable share of world output, which has remained at about 26% for more than forty years, with only a gradual decline in recent years. The U.S. share of world GDP in 2011 (26%) was actually higher than in 1982 (25.8%).
2. It's also interesting to note that: a) the shares of world GDP in 2011 were almost exactly the same for the U.S. (25.9%), the EU-15 (26.2%) and Asia/Oceania (26.9%). For both of the last two years (2010 and 2011), Asia/Oceania's share of world GDP has been slightly higher than both the EU15 and the USA. The combined GDP of Latin America, Middle East and Africa has also been relatively stable at about 10%, with recent increases to above 12% in the last two years.
3. The biggest changes over time have been the gradual decline in the EU-15's share of world GDP from almost 36% in 1969 to roughly 26% by 2011, while Asia/Oceania's share has increased from less than 15% in 1969 to almost 27% in 2011. The fact that America's share of world GDP has remained constant over time is a testament to how America's dynamism, resiliency, and culture of innovation and entrepreneurship have enabled us to continue to be productive and competitive in a "tough world." In contrast, the EU-15's declining share of the world economy demonstrates the failure of anti-growth, European-style socialism with high taxes and excessive regulations that have created a culture of dependency and entitlement.
4. For the first time ever, real world GDP (in 2005 dollars) exceeded $50 trillion in 2011, a new record high level of world output, and 2.7% above last year. At the global level, there's been a complete recovery from the worldwide slowdown in 2008 and 2009 with world output now at an all-time high.