Commodity Scoreboard: Uranium and Silver Led the Way in Q1 [Chart]
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
The overall commodities market (S&P GSCI) tanked -5.1% in Q1, weighed on by fossil fuels with oil and natural gas down -11.7% and -7.1% respectively. However, it was a different energy-related commodity that had the last laugh.
Uranium quietly led the pack in Q1 with an impressive 11.6% gain. It is trading close to the $40 per pound level, which is a sizable increase from the $30 level it was trading at last summer. JPMorgan sees the price averaging $42 this year, and moving to a spot price of $50 in 2016.
On the precious metals front, the gold/silver ratio fell to a low of 70 near the end of March, with silver up 5.7% on Q1 in total. Recent movement has brought this back to closer to the 73 level.
Gold had finished flat in the quarter in USD, but as many market commentators have noted, it is actually appreciating in value versus the majority of currencies. It is the relative strength of the USD that is concealing this stealth bull market in the yellow metal.
Oil, which struggled the most in Q1 and bottomed in early March, has seen some life recently as the decrease in rig count has started to “taper”. That said, there is still vast oversupply in especially the US market with production in America at its highest level since 1972.
Ranked: The World’s 50 Top Countries by GDP, by Sector Breakdown
This graphic shows GDP by country, broken down into three main sectors: services, industry, and agriculture.
Visualized: The Three Pillars of GDP, by Country
Over the last several decades, the service sector has fueled the economic activity of the world’s largest countries. Driving this trend has been changes in consumption, the easing of trade barriers, and rapid advancements in tech.
We can see this in the gross domestic product (GDP) breakdown of each country, which gets divided into three broad sectors: services, industry, and agriculture.
The above graphic from Pranav Gavali shows GDP by country, and how each sector contributes to an economy’s output, with data from the World Bank.
Drivers of GDP, by Country
As the most important and fastest growing component of GDP, services make up almost 60% of GDP in the world’s 50 largest countries. Following this is the industrial sector which includes the production of raw goods.
Below, we show how each sector contributes to GDP by country as of 2021:
|🇰🇷 South Korea||57.0||32.4||1.8||8.8||$1.8|
|🇸🇦 Saudi Arabia||46.5||44.7||2.7||6.1||$0.8|
|🇭🇰 Hong Kong||89.7||6.0||0.1||4.3||$0.4|
|🇿🇦 South Africa||63.0||24.5||2.5||10.0||$0.4|
Industrial sector includes construction. Agriculture sector includes forestry and fishing. *Data as of 2019.
In the U.S., services make up nearly 78% of GDP. Apart from Hong Kong, it comprises the highest share of GDP across the world’s largest economies. Roughly 80% of American jobs in the private sector are in services, spanning from healthcare and entertainment to finance and logistics.
Like America, a growing share of China’s GDP is from services, contributing to almost 54% of total economic output, up from 44% in 2010. This can be attributed to rising incomes and higher productivity in the sector as the economy has grown and matured, among other factors.
In a departure from the top 10 biggest countries globally, agriculture continues to drive a large portion of India’s GDP. India is the world’s second largest producer of wheat and rice, with agriculture accounting for 44% of the country’s employment.
While the services sector has grown in India, it makes up a greater share in other emerging economies such as Brazil (58%), Mexico (59%), and the Philippines (61%).
Services-led growth has risen faster than manufacturing across many developing nations, underpinned by productivity growth.
This structural shift is seen across economies. In many countries in Africa, for instance, jobs have increasingly moved from agriculture to services and trade, where it now accounts for 42% of jobs.
These growth patterns are supported by rising incomes in developing economies, while innovation in tech is lowering barriers to enabling service growth. As the industrial sector makes up a lower share of trade and economic activity, the service sector is projected to make up 77% of global GDP by 2035.
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