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Mapped: The World’s Biggest Importers in 2018

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Mapped: The World's Biggest Importers

Mapped: The World’s Biggest Importers in 2018

If a country’s economy was entirely self-sufficient and independent, it wouldn’t ever need to import goods from elsewhere.

While the prospect of insulating yourself from the turbulence of global markets may sound alluring at first glance, it would come with considerable caveats, risks, and downsides.

Not only would it mean missing out on the world’s best foreign products, but it would likely translate to incredibly expensive goods domestically. Meanwhile, highly specialized products would be unavailable, and unforeseen events (natural disasters, labor strikes, droughts, etc.) would have the potential to disrupt supply chains in ways that lead to economic chaos.

For these reasons — along with many others — most economies opt to import in billions of dollars of goods each year from their international trading partners.

Which Countries Import the Most Goods?

Today’s map comes from HowMuch.net, and it resizes countries based on the value of their annual imports in 2018. The visualization is based on data from the World Trade Organization.

Let’s take a look at the 15 countries that are the world’s biggest importers:

Rank
Country
Imports (2018, $M)
Share of Global Total
#1🇺🇸 United States$2,614,32713.2%
#2🇨🇳 China$2,135,90510.8%
#3🇩🇪 Germany$1,285,6446.5%
#4🇯🇵 Japan$748,7353.8%
#5🇬🇧 United Kingdom$673,549
3.4%
#6🇫🇷 France$672,593
3.4%
#7🇳🇱 Netherlands$646,029
3.3%
#8🇭🇰 Hong Kong, China$627,517
3.2%
#9🇰🇷 Korea, Republic of$535,202
2.7%
#10🇮🇳 India$510,665
2.6%
#11🇮🇹 Italy$500,795
2.5%
#12🇲🇽 Mexico$476,569
2.4%
#13🇨🇦 Canada$469,000
2.4%
#14🇧🇪 Belgium$450,116
2.3%
#15🇪🇸 Spain$388,044
2.0%

In combination, economies around the world import a total of $19.9 trillion in goods each year.

The world’s largest single importer is the United States, with a 13.4% share of global imports equal to $2.6 trillion of goods. Following the U.S. are two other significant economies, each which import over $1 trillion in goods every year: China ($2.1 trillion), and Germany ($1.3 trillion).

Finally, it’s worth noting that if the numbers for the European Union (28) were combined into a single entity, it’d be the world’s biggest importer by far with nearly $6.5 trillion of imports.

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Economy

Top Countries by GDP and Economic Components (1970-2017)

This animation looks at the top countries in the world by GDP, while also showing the components that comprised economic activity at the time.

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Countries by GDP and Economic Components (1970-2017)

While looking at the top countries by GDP is a useful big picture measure, it can also be informative to look at the components that make up an economy as well.

Examining a country’s economic building blocks can tell us a lot about what stage of development the country is in, and where competitive advantages may exist.

Analyzing GDP by Sector

Today’s “horse race” bar chart, by Number Story, is an entertaining historical look at the ranking of top countries by GDP, including the parts that make up the whole.

Here is the latest data as of 2018, as well as the largest sector according to data from the United Nations’ industry classification database:

RankCountryGDP (2018)Top Sector (% of total)2nd Largest Sector (% of total)
1🇺🇸 United States$20.6TOther (55%)Mining/Manufacturing/Utilities (15%)
2🇨🇳 China$13.6TOther (36%)Mining/Manufacturing/Utilities (33%)
3🇯🇵 Japan$4.9TOther (43%)Mining/Manufacturing/Utilities (23%)
4🇩🇪 Germany$3.6TOther (48%)Mining/Manufacturing/Utilities (25%)
5🇬🇧 UK$2.5TOther (55%)Retail/Restaurant/Hotels (14%)
6🇮🇳 India$2.5TOther (36%)Mining/Manufacturing/Utilities (22%)
7🇫🇷 France$2.5TOther (56%)Mining/Manufacturing/Utilities (13%)
8🇮🇹 Italy$1.9TOther (49%)Mining/Manufacturing/Utilities (20%)
9🇧🇷 Brazil$1.6TOther (50%)Mining/Manufacturing/Utilities (16%)
10🇨🇦 Canada$1.6TOther (52%)Mining/Manufacturing/Utilities (18%)
11🇰🇷 South Korea$1.6TOther (42%)Mining/Manufacturing/Utilities (31%)
12🇷🇺 Russia$1.5TOther (36%)Mining/Manufacturing/Utilities (28%)
13🇦🇺 Australia$1.4TOther (53%)Mining/Manufacturing/Utilities (17%)
14🇪🇸 Spain$1.3TOther (47%)Retail/Restaurant/Hotels (19%)
15🇲🇽 Mexico$1.2TOther (34%)Mining/Manufacturing/Utilities (24%)

Why are “Other Activities” so dominant in this breakdown?

It’s because of the way GDP that components are classified as data in the UN industry classification system, which is laid out below:

  1. Agriculture, hunting, forestry, fishing (ISIC A-B)
  2. Mining, manufacturing, utilities (ISIC C-E)
  3. Construction (ISIC F)
  4. Wholesale, retail trade, restaurants and hotels (ISIC G-H)
  5. Transport, storage and communication (ISIC I)
  6. Other activities, such as finance, healthcare, real estate, and tech (ISIC J-P)

Although agriculture, construction, or manufacturing have been a bedrock for economies in the past, developed countries skew towards adding economic value in different ways today.

Given that finance, government spending (healthcare, education, defense, etc.) and technology — all important modern industries — are included in “Other”, this makes the possibly outdated classification the biggest (and least useful) category to examine here.

Nevertheless, there is still information we can glean from this animated breakdown of GDP, spanning a period of almost 50 years.

A More Granular Look at GDP

In the past, we’ve shown you high level visualizations that break down the world’s $86 trillion GDP by country, or even projections on the largest countries by GDP in 2030 in PPP terms.

However, the animated bar chart shows something more granular that is compelling in its own right. By observing the evolution of countries’ economic components over time, some interesting observations emerge that would normally be lost in the big picture.

Japan’s Manufacturing Boom

At points during Japan’s heyday of growth during the 1980’s, manufacturing comprised nearly 30% of economic activity. By the mid-90s, this single segment of Japan’s economy was so valuable that, on its own, it would’ve placed fifth in the global ranking.

America Leading the Pack

While other countries switch positions, reordering as economies boom and bust, the U.S. has handily remained in top position.

Japan was the country that narrowed the gap between the first and second spot the most, though the country’s Lost Decade in the 1990s cut that ascension short.

During the years between 1970 and 2017, the United States was at its most dominant in 2006 when its GDP was triple the size of Japan’s. Of course, in recent years China has narrowed the gap considerably.

A Star Rising in the East

As one would expect, the building blocks of China’s economy looked very different in the 1970s than today.

The communist systems of the USSR and China are both easy to spot in the visualization. Agriculture played an outsized role, and industries like finance, real estate, and retail were understated compared to the profiles of countries that operated under a capitalist system.

In 1980, as the first Special Economic Zones were being created, three-quarters of China’s economy was based on agriculture, resource extraction, and manufacturing. Even as recently as the early ’90s, China wasn’t in the top 10 despite being the world’s most populous country.

Of course, that situation changed drastically over the next two decades. By the dawn of the 21st century, China ranked fifth in the world, and a decade later, China surpassed Japan to become the second largest economy globally.

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Economy

Visualizing the Global Rise of Sustainable Investing

Total assets in sustainable investing reached nearly $31 trillion in 2018. What are the driving forces behind the global rise of sustainable investing?

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No matter where you look, climate change is at the centre of every conversation.

With a wide range of global sustainability challenges and complex risks on the rise, investors are starting to re-evaluate traditional portfolio approaches.

The ESG Boom

Today, many investors want their money to align with a higher purpose beyond profit. This infographic from iShares unpacks the prolific rise of sustainable investing, and how its trillion-dollar potential is sweeping across the world.

ESG Sustainability

What is Sustainable Investing?

Sustainable investing considers environmental, social, and governance (ESG) factors that create a lasting, positive impact on the world. As the term ‘ESG’ suggests, its scope goes well beyond environmental concerns alone. Examples include:

  • Environmental: Climate risks, resource scarcity, and clean energy
  • Social: Diversity, human rights, and cybersecurity
  • Governance: Business ethics, transparency, and anti-corruption

Simply put, it’s a force for good.

Although sustainable investing emerged in the 1970s, the movement has gained impressive traction in the last few years.

How Global Assets are Growing

Since 2012, total assets in sustainable investing have more than doubled:

Region2012 Assets2018 Assets
Total$13.3 trillion$30.7 trillion
Europe$8.8 trillion$14.1 trillion
U.S.$3.7 trillion$12.0 trillion
Japan$0.01 trillion$2.2 trillion
Canada$0.59 trillion$1.7 trillion
Australia and New Zealand$0.18 trillion$0.7 trillion

The U.S. and Europe are major players in this shift. In particular, specific legislation across European countries will continue driving ESG investment for years to come.

The European ESG Landscape

Across major economies in Europe, cultural shifts and new regulations are shaping the landscape of sustainable investing.

  • The UK has an ambitious net-zero greenhouse gas emissions target by 2050.
    Result: Most sectors will significantly ramp up their decarbonisation efforts to meet this goal.
  • As per France’s Article 173 (Energy Transition Law), investors must explain how they incorporate ESG factors into their investment strategies.
    Result: A majority of French institutional investors now manage their assets with ESG criteria in mind.
  • Nordic countries consider sustainability and social responsibility a cornerstone of their cultural mindset.
    Result: Nordic investors are increasingly integrating all three ESG aspects into their investments.

If Europe’s trajectory is any indication, sustainable investing will soon become second nature in other parts of the world too.

No Industry is Untouched

The rise of sustainable investing is a global phenomenon, and reaches a myriad of industries.

Here is a summary of just a few ESG efforts of some of the world’s most sustainable corporations:

CompanyIndustryCountryESG Efforts
Chr. Hansen A/SBioscience🇩🇰 Denmark• 100% green operations commitment by Apr 2020
• 82% of revenue directly supports UN Global Goals
AutodeskSoftware🇺🇸 U.S.• 100% renewable energy-run cloud services and offices
• 44% women on the Board
Banco do BrazilFinance🇧🇷 Brazil• $51 billion earmarked for green economy spending
• 99% adherence to Code of Ethics and Conduct Standards
City Developments LtdReal Estate🇸🇬 Singapore• S$100 million fully-allocated Green Bond
• 59% carbon emissions reduction target by 2030

The business world agrees: sustainable investing is smart investing.

How Can Investors Think Sustainably?

Many investment products allow investors to easily access sustainable investing, such as exchange-traded funds (ETFs) and index funds. These provide complete transparency—allowing investors to align their approach with the objectives that matter most to them.

Investors are able to:

  1. Screen out companies involved in controversial businesses
  2. Invest in companies with high ESG standards
  3. Advocate for specific issues like climate change

Not only this, but sustainable investing also has the potential to improve portfolio returns. In a 2015 paper covering ESG investing since the 1970s, 90% of ESG investing matched or overperformed traditional approaches.

The Bottom Line

Investors see a triple bottom line from sustainable investing: strong financial returns, and a lasting impact on both people and the planet.

As sustainable investing goes mainstream, it won’t simply act as a niche in a broader strategy—instead, it’ll be naturally integrated throughout a portfolio.

“With the impact of sustainability on investment returns increasing, we believe that sustainable investing is the strongest foundation for client portfolios going forward.

—Larry Fink, BlackRock Chairman and CEO

Sustainability is a global force that will continue to factor into everyday decisions.

Soon, sustainable investing will simply be considered “investing”.

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