Markets
Top Heavy: Countries by Share of the Global Economy
Countries by Share of the Global Economy
As 2022 comes to a close we can recap many historic milestones of the year, like the Earth’s population hitting 8 billion and the global economy surpassing $100 trillion.
In this chart, we visualize the world’s GDP using data from the IMF, showcasing the biggest economies and the share of global economic activity that they make up.
The GDP Heavyweights
The global economy can be thought of as a pie, with the size of each slice representing the share of global GDP contributed by each country. Currently, the largest slices of the pie are held by the United States, China, Japan, Germany, and India, which together account for more than half of global GDP.
Here’s a look at every country’s share of the world’s $101.6 trillion economy:
Rank | Country | GDP (Billions, USD) |
---|---|---|
#1 | 🇺🇸 United States | $25,035.2 |
#2 | 🇨🇳 China | $18,321.2 |
#3 | 🇯🇵 Japan | $4,300.6 |
#4 | 🇩🇪 Germany | $4,031.1 |
#5 | 🇮🇳 India | $3,468.6 |
#6 | 🇬🇧 United Kingdom | $3,198.5 |
#7 | 🇫🇷 France | $2,778.1 |
#8 | 🇨🇦 Canada | $2,200.4 |
#9 | 🇷🇺 Russia | $2,133.1 |
#10 | 🇮🇹 Italy | $1,997.0 |
#11 | 🇮🇷 Iran | $1,973.7 |
#12 | 🇧🇷 Brazil | $1,894.7 |
#13 | 🇰🇷 South Korea | $1,734.2 |
#14 | 🇦🇺 Australia | $1,724.8 |
#15 | 🇲🇽 Mexico | $1,424.5 |
#16 | 🇪🇸 Spain | $1,389.9 |
#17 | 🇮🇩 Indonesia | $1,289.4 |
#18 | 🇸🇦 Saudi Arabia | $1,010.6 |
#19 | 🇳🇱 Netherlands | $990.6 |
#20 | 🇹🇷 Turkey | $853.5 |
#21 | 🇹🇼 Taiwan | $828.7 |
#22 | 🇨🇭 Switzerland | $807.4 |
#23 | 🇵🇱 Poland | $716.3 |
#24 | 🇦🇷 Argentina | $630.7 |
#25 | 🇸🇪 Sweden | $603.9 |
#26 | 🇧🇪 Belgium | $589.5 |
#27 | 🇹🇭 Thailand | $534.8 |
#28 | 🇮🇱 Israel | $527.2 |
#29 | 🇮🇪 Ireland | $519.8 |
#30 | 🇳🇴 Norway | $504.7 |
#31 | 🇳🇬 Nigeria | $504.2 |
#32 | 🇦🇪 United Arab Emirates | $503.9 |
#33 | 🇪🇬 Egypt | $469.1 |
#34 | 🇦🇹 Austria | $468.0 |
#35 | 🇧🇩 Bangladesh | $460.8 |
#36 | 🇲🇾 Malaysia | $434.1 |
#37 | 🇸🇬 Singapore | $423.6 |
#38 | 🇻🇳 Vietnam | $413.8 |
#39 | 🇿🇦 South Africa | $411.5 |
#40 | 🇵🇭 Philippines | $401.7 |
#41 | 🇩🇰 Denmark | $386.7 |
#42 | 🇵🇰 Pakistan | $376.5 |
#43 | 🇭🇰 Hong Kong SAR | $368.4 |
#44 | 🇨🇴 Colombia | $342.9 |
#45 | 🇨🇱 Chile | $310.9 |
#46 | 🇷🇴 Romania | $299.9 |
#47 | 🇨🇿 Czech Republic | $295.6 |
#48 | 🇮🇶 Iraq | $282.9 |
#49 | 🇫🇮 Finland | $281.4 |
#50 | 🇵🇹 Portugal | $255.9 |
#51 | 🇳🇿 New Zealand | $242.7 |
#52 | 🇵🇪 Peru | $239.3 |
#53 | 🇰🇿 Kazakhstan | $224.3 |
#54 | 🇬🇷 Greece | $222.0 |
#55 | 🇶🇦 Qatar | $221.4 |
#56 | 🇩🇿 Algeria | $187.2 |
#57 | 🇭🇺 Hungary | $184.7 |
#58 | 🇰🇼 Kuwait | $183.6 |
#59 | 🇲🇦 Morocco | $142.9 |
#60 | 🇦🇴 Angola | $124.8 |
#61 | 🇵🇷 Puerto Rico | $118.7 |
#62 | 🇪🇨 Ecuador | $115.5 |
#63 | 🇰🇪 Kenya | $114.9 |
#64 | 🇸🇰 Slovakia | $112.4 |
#65 | 🇩🇴 Dominican Republic | $112.4 |
#66 | 🇪🇹 Ethiopia | $111.2 |
#67 | 🇴🇲 Oman | $109.0 |
#68 | 🇬🇹 Guatemala | $91.3 |
#69 | 🇧🇬 Bulgaria | $85.0 |
#70 | 🇱🇺 Luxembourg | $82.2 |
#71 | 🇻🇪 Venezuela | $82.1 |
#72 | 🇧🇾 Belarus | $79.7 |
#73 | 🇺🇿 Uzbekistan | $79.1 |
#74 | 🇹🇿 Tanzania | $76.6 |
#75 | 🇬🇭 Ghana | $76.0 |
#76 | 🇹🇲 Turkmenistan | $74.4 |
#77 | 🇱🇰 Sri Lanka | $73.7 |
#78 | 🇺🇾 Uruguay | $71.2 |
#79 | 🇵🇦 Panama | $71.1 |
#80 | 🇦🇿 Azerbaijan | $70.1 |
#81 | 🇭🇷 Croatia | $69.4 |
#82 | 🇨🇮 Côte d'Ivoire | $68.6 |
#83 | 🇨🇷 Costa Rica | $68.5 |
#84 | 🇱🇹 Lithuania | $68.0 |
#85 | 🇨🇩 Democratic Republic of the Congo | $63.9 |
#86 | 🇷🇸 Serbia | $62.7 |
#87 | 🇸🇮 Slovenia | $62.2 |
#88 | 🇲🇲 Myanmar | $59.5 |
#89 | 🇺🇬 Uganda | $48.4 |
#90 | 🇯🇴 Jordan | $48.1 |
#91 | 🇹🇳 Tunisia | $46.3 |
#92 | 🇨🇲 Cameroon | $44.2 |
#93 | 🇧🇭 Bahrain | $43.5 |
#94 | 🇧🇴 Bolivia | $43.4 |
#95 | 🇸🇩 Sudan | $42.8 |
#96 | 🇵🇾 Paraguay | $41.9 |
#97 | 🇱🇾 Libya | $40.8 |
#98 | 🇱🇻 Latvia | $40.6 |
#99 | 🇪🇪 Estonia | $39.1 |
#100 | 🇳🇵 Nepal | $39.0 |
#101 | 🇿🇼 Zimbabwe | $38.3 |
#102 | 🇸🇻 El Salvador | $32.0 |
#103 | 🇵🇬 Papua New Guinea | $31.4 |
#104 | 🇭🇳 Honduras | $30.6 |
#105 | 🇹🇹 Trinidad and Tobago | $29.3 |
#106 | 🇰🇭 Cambodia | $28.3 |
#107 | 🇮🇸 Iceland | $27.7 |
#108 | 🇾🇪 Yemen | $27.6 |
#109 | 🇸🇳 Senegal | $27.5 |
#110 | 🇿🇲 Zambia | $27.0 |
#111 | 🇨🇾 Cyprus | $26.7 |
#112 | 🇬🇪 Georgia | $25.2 |
#113 | 🇧🇦 Bosnia and Herzegovina | $23.7 |
#114 | 🇲🇴 Macao SAR | $23.4 |
#115 | 🇬🇦 Gabon | $22.2 |
#116 | 🇭🇹 Haiti | $20.2 |
#117 | 🇬🇳 Guinea | $19.7 |
#118 | West Bank and Gaza | $18.8 |
#119 | 🇧🇳 Brunei | $18.5 |
#120 | 🇲🇱 Mali | $18.4 |
#121 | 🇧🇫 Burkina Faso | $18.3 |
#122 | 🇦🇱 Albania | $18.3 |
#123 | 🇧🇼 Botswana | $18.0 |
#124 | 🇲🇿 Mozambique | $17.9 |
#125 | 🇦🇲 Armenia | $17.7 |
#126 | 🇧🇯 Benin | $17.5 |
#127 | 🇲🇹 Malta | $17.2 |
#128 | 🇬🇶 Equatorial Guinea | $16.9 |
#129 | 🇱🇦 Laos | $16.3 |
#130 | 🇯🇲 Jamaica | $16.1 |
#131 | 🇲🇳 Mongolia | $15.7 |
#132 | 🇳🇮 Nicaragua | $15.7 |
#133 | 🇲🇬 Madagascar | $15.1 |
#134 | 🇬🇾 Guyana | $14.8 |
#135 | 🇳🇪 Niger | $14.6 |
#136 | 🇨🇬 Republic of Congo | $14.5 |
#137 | 🇲🇰 North Macedonia | $14.1 |
#138 | 🇲🇩 Moldova | $14.0 |
#139 | 🇹🇩 Chad | $12.9 |
#140 | 🇧🇸 The Bahamas | $12.7 |
#141 | 🇳🇦 Namibia | $12.5 |
#142 | 🇷🇼 Rwanda | $12.1 |
#143 | 🇲🇼 Malawi | $11.6 |
#144 | 🇲🇺 Mauritius | $11.5 |
#145 | 🇲🇷 Mauritania | $10.1 |
#146 | 🇹🇯 Tajikistan | $10.0 |
#147 | 🇰🇬 Kyrgyzstan | $9.8 |
#148 | 🇽🇰 Kosovo | $9.2 |
#149 | 🇸🇴 Somalia | $8.4 |
#150 | 🇹🇬 Togo | $8.4 |
#151 | 🇲🇪 Montenegro | $6.1 |
#152 | 🇲🇻 Maldives | $5.9 |
#153 | 🇧🇧 Barbados | $5.8 |
#154 | 🇫🇯 Fiji | $4.9 |
#155 | 🇸🇸 South Sudan | $4.8 |
#156 | 🇸🇿 Eswatini | $4.7 |
#157 | 🇸🇱 Sierra Leone | $4.1 |
#158 | 🇱🇷 Liberia | $3.9 |
#159 | 🇩🇯 Djibouti | $3.7 |
#160 | 🇧🇮 Burundi | $3.7 |
#161 | 🇦🇼 Aruba | $3.5 |
#162 | 🇦🇩 Andorra | $3.3 |
#163 | 🇸🇷 Suriname | $3.0 |
#164 | 🇧🇹 Bhutan | $2.7 |
#165 | 🇧🇿 Belize | $2.7 |
#166 | 🇱🇸 Lesotho | $2.5 |
#167 | 🇨🇫 Central African Republic | $2.5 |
#168 | 🇹🇱 Timor-Leste | $2.4 |
#169 | 🇪🇷 Eritrea | $2.4 |
#170 | 🇬🇲 The Gambia | $2.1 |
#171 | 🇨🇻 Cabo Verde | $2.1 |
#172 | 🇸🇨 Seychelles | $2.0 |
#173 | 🇱🇨 St. Lucia | $2.0 |
#174 | 🇦🇬 Antigua and Barbuda | $1.7 |
#175 | 🇬🇼 Guinea-Bissau | $1.6 |
#176 | 🇸🇲 San Marino | $1.6 |
#177 | 🇸🇧 Solomon Islands | $1.6 |
#178 | 🇰🇲 Comoros | $1.2 |
#179 | 🇬🇩 Grenada | $1.2 |
#180 | 🇰🇳 St. Kitts and Nevis | $1.1 |
#181 | 🇻🇺 Vanuatu | $1.0 |
#182 | 🇻🇨 St. Vincent and the Grenadines | $1.0 |
#183 | 🇼🇸 Samoa | $0.83 |
#184 | 🇩🇲 Dominica | $0.60 |
#185 | 🇸🇹 São Tomé and Príncipe | $0.51 |
#186 | 🇹🇴 Tonga | $0.50 |
#187 | 🇫🇲 Micronesia | $0.43 |
#188 | 🇲🇭 Marshall Islands | $0.27 |
#189 | 🇵🇼 Palau | $0.23 |
#190 | 🇰🇮 Kiribati | $0.21 |
#191 | 🇳🇷 Nauru | $0.13 |
#192 | 🇹🇻 Tuvalu | $0.06 |
#193 | 🇺🇦 Ukraine | Data not available |
Total World GDP | $101,559.3 |
Just five countries make up more than half of the world’s entire GDP in 2022: the U.S., China, Japan, India, and Germany. Interestingly, India replaced the UK this year as a top five economy.
Adding on another five countries (the top 10) makes up 66% of the global economy, and the top 25 countries comprise 84% of global GDP.
The World’s Smallest Economies
The rest of the world — the remaining 167 nations — make up 16% of global GDP. Many of the smallest economies are islands located in Oceania.
Here’s a look at the 20 smallest economies in the world:
Country | GDP (Billions, USD) |
---|---|
🇹🇻 Tuvalu | $0.06 |
🇳🇷 Nauru | $0.13 |
🇰🇮 Kiribati | $0.21 |
🇵🇼 Palau | $0.23 |
🇲🇭 Marshall Islands | $0.27 |
🇫🇲 Micronesia | $0.43 |
🇹🇴 Tonga | $0.50 |
🇸🇹 São Tomé and Príncipe | $0.51 |
🇩🇲 Dominica | $0.60 |
🇼🇸 Samoa | $0.83 |
🇻🇨 St. Vincent and the Grenadines | $0.95 |
🇻🇺 Vanuatu | $0.98 |
🇰🇳 St. Kitts and Nevis | $1.12 |
🇬🇩 Grenada | $1.19 |
🇰🇲 Comoros | $1.24 |
🇸🇧 Solomon Islands | $1.60 |
🇸🇲 San Marino | $1.62 |
🇬🇼 Guinea-Bissau | $1.62 |
🇦🇬 Antigua and Barbuda | $1.69 |
🇱🇨 St. Lucia | $1.97 |
Tuvalu has the smallest GDP of any country at just $64 million. Tuvalu is one of a dozen nations with a GDP of less than one billion dollars.
The Global Economy in 2023
Heading into 2023, there is much economic uncertainty. Many experts are anticipating a brief recession, although opinions differ on the definition of “brief”.
Some experts believe that China will buck the trend of economic downturn. If this prediction comes true, the country could own an even larger slice of the global GDP pie in the near future.
See what hundreds of experts are predicting for 2023 with our Global Forecast Series.
Where does this data come from?
Source: IMF (International Monetary Fund)
Data note: Due to conflict and other issues, some countries are not included in this data set (e.g. Ukraine, Syria, Afghanistan). Major sources for GDP data differ widely on the size of Iran’s economy. It’s worth noting that this data from IMF ranks Iran’s GDP much higher than World Bank or the UN.
Markets
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Small- and mid-cap stocks have historically outperformed large caps. What are the opportunities and risks to consider?
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Over the last 35 years, small- and mid-cap stocks have outperformed large caps, making them an attractive choice for investors.
According to data from Yahoo Finance, from February 1989 to February 2024, large-cap stocks returned +1,664% versus +2,062% for small caps and +3,176% for mid caps.
This graphic, sponsored by New York Life Investments, explores their return potential along with the risks to consider.
Higher Historical Returns
If you made a $100 investment in baskets of small-, mid-, and large-cap stocks in February 1989, what would each grouping be worth today?
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Starting value (February 1989) | $100 | $100 | $100 |
Ending value (February 2024) | $2,162 | $3,276 | $1,764 |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Mid caps delivered the strongest performance since 1989, generating 86% more than large caps.
This superior historical track record is likely the result of the unique position mid-cap companies find themselves in. Mid-cap firms have generally successfully navigated early stage growth and are typically well-funded relative to small caps. And yet they are more dynamic and nimble than large-cap companies, allowing them to respond quicker to the market cycle.
Small caps also outperformed over this timeframe. They earned 23% more than large caps.
Higher Volatility
However, higher historical returns of small- and mid-cap stocks came with increased risk. They both endured greater volatility than large caps.
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Total Volatility | 18.9% | 17.4% | 14.8% |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Small-cap companies are typically earlier in their life cycle and tend to have thinner financial cushions to withstand periods of loss relative to large caps. As a result, they are usually the most volatile group followed by mid caps. Large-cap companies, as more mature and established players, exhibit the most stability in their stock prices.
Investing in small caps and mid caps requires a higher risk tolerance to withstand their price swings. For investors with longer time horizons who are capable of enduring higher risk, current market pricing strengthens the case for stocks of smaller companies.
Attractive Valuations
Large-cap stocks have historically high valuations, with their forward price-to-earnings ratio (P/E ratio) trading above their 10-year average, according to analysis conducted by FactSet.
Conversely, the forward P/E ratios of small- and mid-cap stocks seem to be presenting a compelling entry point.
Small Caps/Large Caps | Mid Caps/Large Caps | |
---|---|---|
Relative Forward P/E Ratios | 0.71 | 0.75 |
Discount | 29% | 25% |
Source: Yardeni Research (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Looking at both groups’ relative forward P/E ratios (small-cap P/E ratio divided by large-cap P/E ratio, and mid-cap P/E ratio divided by large-cap P/E ratio), small and mid caps are trading at their steepest discounts versus large caps since the early 2000s.
Discovering Small- and Mid-Cap Stocks
Growth-oriented investors looking to add equity exposure could consider incorporating small and mid caps into their portfolios.
With superior historical returns and relatively attractive valuations, small- and mid-cap stocks present a compelling opportunity for investors capable of tolerating greater volatility.
Explore more insights from New York Life Investments
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