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The Influence of Family-Owned Businesses, by Share of GDP

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The Influence of Family-Owned Businesses, by Share of GDP

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Family-Owned Businesses, by Share of GDP

In many ways, the engine of global economic growth is hidden in plain sight.

Family-owned businesses, which make up 90% of global enterprises, have driven job creation and entrepreneurship over history. While the majority of these are mom-and-pop shops, some of the world’s largest companies, from Walmart to Ford, are family-run.

This graphic shows the economic influence of family businesses in select countries, with analysis from Tharawat.

Family Businesses and the World Economy

Below, we show the economic contribution of family businesses around the world:

CountryFamily Business
Share of GDP
GDP 2023Estimated Contribution
to GDP
🇮🇳 India79%$3,737B$2,952B
🇪🇸 Spain70%$1,492B$1,044B
🇲🇽 Mexico70%$1,663B$1,164B
🇮🇹 Italy68%$2,170B$1,476B
🇬🇧 UK67%$3,159B$2,117B
🇵🇹 Portugal67%$268B$180B
🇨🇦 Canada60%$2,090B$1,254B
🇺🇸 U.S.54%$26,855B$14,502B
🇨🇳 China51%$19,374B$9,881B
🇩🇪 Germany49%$4,309B$2,111B
🇪🇨 Ecuador40%$121B$48B
🇦🇪 UAE40%$499B$200B
🇳🇱 Netherlands25%$1,081B$270B
🇮🇩 Indonesia10%$1,392B$139B

As the above table shows, 79% of India’s economic output is fueled by family-owned businesses, the highest across the dataset.

Reliance Industries is the largest family enterprise in the country, and the 10th-largest globally. Founded in 1973, it is run by the Ambani family and has a $204 billion market capitalization as of December 2023.

Following India are Spain and Mexico, with family businesses making up 70% of GDP and contributing over $1 trillion to these economies each year.

In the U.S., an estimated 32.4 million businesses are family-owned that collectively generate $14.5 trillion in GDP. The largest of these enterprises are Walmart, Berkshire Hathaway, and Cargill.

Family Offices in Private Capital Markets

Just as family businesses have significant influence over global GDP, family offices also own a large portion of global assets.

Family Offices as a Share of Private Capital Markets

In fact, they make 27% of private capital markets globally, with $6.1 trillion in assets under management—more than doubling over the last decade.

While the majority of family office assets are invested in funds, there is a growing trend of investing directly in target companies, such as tech start-ups.

By 2027, Ernst & Young projects that private markets will expand considerably, facing a similar trend seen over the last decade—with family offices playing a key role in driving this growth.

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U.S. Debt Interest Payments Reach $1 Trillion

U.S. debt interest payments have surged past the $1 trillion dollar mark, amid high interest rates and an ever-expanding debt burden.

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This line chart shows U.S. debt interest payments over modern history.

U.S. Debt Interest Payments Reach $1 Trillion

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The cost of paying for America’s national debt crossed the $1 trillion dollar mark in 2023, driven by high interest rates and a record $34 trillion mountain of debt.

Over the last decade, U.S. debt interest payments have more than doubled amid vast government spending during the pandemic crisis. As debt payments continue to soar, the Congressional Budget Office (CBO) reported that debt servicing costs surpassed defense spending for the first time ever this year.

This graphic shows the sharp rise in U.S. debt payments, based on data from the Federal Reserve.

A $1 Trillion Interest Bill, and Growing

Below, we show how U.S. debt interest payments have risen at a faster pace than at another time in modern history:

DateInterest PaymentsU.S. National Debt
2023$1.0T$34.0T
2022$830B$31.4T
2021$612B$29.6T
2020$518B$27.7T
2019$564B$23.2T
2018$571B$22.0T
2017$493B$20.5T
2016$460B$20.0T
2015$435B$18.9T
2014$442B$18.1T
2013$425B$17.2T
2012$417B$16.4T
2011$433B$15.2T
2010$400B$14.0T
2009$354B$12.3T
2008$380B$10.7T
2007$414B$9.2T
2006$387B$8.7T
2005$355B$8.2T
2004$318B$7.6T
2003$294B$7.0T
2002$298B$6.4T
2001$318B$5.9T
2000$353B$5.7T
1999$353B$5.8T
1998$360B$5.6T
1997$368B$5.5T
1996$362B$5.3T
1995$357B$5.0T
1994$334B$4.8T
1993$311B$4.5T
1992$306B$4.2T
1991$308B$3.8T
1990$298B$3.4T
1989$275B$3.0T
1988$254B$2.7T
1987$240B$2.4T
1986$225B$2.2T
1985$219B$1.9T
1984$205B$1.7T
1983$176B$1.4T
1982$157B$1.2T
1981$142B$1.0T
1980$113B$930.2B
1979$96B$845.1B
1978$84B$789.2B
1977$69B$718.9B
1976$61B$653.5B
1975$55B$576.6B
1974$50B$492.7B
1973$45B$469.1B
1972$39B$448.5B
1971$36B$424.1B
1970$35B$389.2B
1969$30B$368.2B
1968$25B$358.0B
1967$23B$344.7B
1966$21B$329.3B

Interest payments represent seasonally adjusted annual rate at the end of Q4.

At current rates, the U.S. national debt is growing by a remarkable $1 trillion about every 100 days, equal to roughly $3.6 trillion per year.

As the national debt has ballooned, debt payments even exceeded Medicaid outlays in 2023—one of the government’s largest expenditures. On average, the U.S. spent more than $2 billion per day on interest costs last year. Going further, the U.S. government is projected to spend a historic $12.4 trillion on interest payments over the next decade, averaging about $37,100 per American.

Exacerbating matters is that the U.S. is running a steep deficit, which stood at $1.1 trillion for the first six months of fiscal 2024. This has accelerated due to the 43% increase in debt servicing costs along with a $31 billion dollar increase in defense spending from a year earlier. Additionally, a $30 billion increase in funding for the Federal Deposit Insurance Corporation in light of the regional banking crisis last year was a major contributor to the deficit increase.

Overall, the CBO forecasts that roughly 75% of the federal deficit’s increase will be due to interest costs by 2034.

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