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:
|Rank||Country||GDP (2018)||Top Sector (% of total)||2nd Largest Sector (% of total)|
|1||🇺🇸 United States||$20.6T||Other (55%)||Mining/Manufacturing/Utilities (15%)|
|2||🇨🇳 China||$13.6T||Other (36%)||Mining/Manufacturing/Utilities (33%)|
|3||🇯🇵 Japan||$4.9T||Other (43%)||Mining/Manufacturing/Utilities (23%)|
|4||🇩🇪 Germany||$3.6T||Other (48%)||Mining/Manufacturing/Utilities (25%)|
|5||🇬🇧 UK||$2.5T||Other (55%)||Retail/Restaurant/Hotels (14%)|
|6||🇮🇳 India||$2.5T||Other (36%)||Mining/Manufacturing/Utilities (22%)|
|7||🇫🇷 France||$2.5T||Other (56%)||Mining/Manufacturing/Utilities (13%)|
|8||🇮🇹 Italy||$1.9T||Other (49%)||Mining/Manufacturing/Utilities (20%)|
|9||🇧🇷 Brazil||$1.6T||Other (50%)||Mining/Manufacturing/Utilities (16%)|
|10||🇨🇦 Canada||$1.6T||Other (52%)||Mining/Manufacturing/Utilities (18%)|
|11||🇰🇷 South Korea||$1.6T||Other (42%)||Mining/Manufacturing/Utilities (31%)|
|12||🇷🇺 Russia||$1.5T||Other (36%)||Mining/Manufacturing/Utilities (28%)|
|13||🇦🇺 Australia||$1.4T||Other (53%)||Mining/Manufacturing/Utilities (17%)|
|14||🇪🇸 Spain||$1.3T||Other (47%)||Retail/Restaurant/Hotels (19%)|
|15||🇲🇽 Mexico||$1.2T||Other (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:
- Agriculture, hunting, forestry, fishing (ISIC A-B)
- Mining, manufacturing, utilities (ISIC C-E)
- Construction (ISIC F)
- Wholesale, retail trade, restaurants and hotels (ISIC G-H)
- Transport, storage and communication (ISIC I)
- 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
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.
Visualizing Layoffs at Prominent Startups Triggered by COVID-19
As unemployment levels rise, we navigate the fallout of COVID-19 as layoffs ripple across the once-thriving startup ecosystem.
Layoffs at Prominent Startups Triggered by COVID-19
As the pandemic reverberates through almost every industry imaginable, tech startups are also feeling the pain.
Since mid-March, countless startups and unicorns have undergone layoffs.
Today’s infographic pulls data from Layoffs.fyi, and navigates the cascading layoffs across 30 of the most recognizable startups in America. Each of the companies have slashed over 250 employees between March 11 and May 26, 2020—capturing a snapshot of the continuing fallout of COVID-19.
Silicon Valley Takes a Hit
Closing 45 offices, Uber has laid off 6,700 employees since mid-March. Uber CEO Dara Khosrowshahi, who was granted a $45M earnings package in 2018, announced he will also waive his $1M base salary for the remainder of the year.
|Company||# Layoffs||% of Employees||Industry|
*Layoffs reported between March 11-May 26, 2020
Meanwhile, as room bookings dropped by over 40% across several countries, Airbnb laid off a quarter of its workforce. The tech darling is anticipating a $2.4B revenue shortfall in 2020.
Like many other big names—including Lyft, Uber, and WeWork—Airbnb is struggling to achieve profitability. In the first nine months of 2019, it lost $322M at the height of the market cycle.
Until 2021, gig-economy revenues are projected to drop by at least 30%.
International Startups Struggling
Startups in the U.S. aren’t the only ones scrambling to conserve cash and cut costs.
Brazil-based unicorn Stone has let go of 20% of its workforce. The rapidly growing digital payments company includes Warren Buffett as a major stakeholder, holding an 8% share as of March 2020.
At the same time, India-based ride-hailing Ola has witnessed revenue declines of 95% since mid-March. It laid off 1,400 employees as bookings drastically declined.
|Company||# Layoffs||% of Employees||Location|
Similarly, Uber India has rivaled Ola in dominance across India’s $10B ride-hailing market since launching three years after Ola, in 2013. Now, almost 25% of the Uber India workforce have been laid off.
Of course, these reports do not fully take into account the growing impact of COVID-19, but help paint a picture as the cracks emerge.
While the job market remains murky, what startups are looking to hire?
Coursera, an online education startup, listed 60 openings in May. By the end of the year, the company plans to hire 250 additional staff. Within the peak of widespread global lockdowns, the platform attracted 10M new users.
Meanwhile, Canva, an Australia-based graphic design unicorn, is seeking to fill 100 positions worldwide. In partnership with Google for Education, Canva offers project-based learning tools designed for classrooms, in addition to free graphic design resources.
At the same time, tech heavyweights Facebook and Amazon reported openings. Booming startups such as Plaid, Zoom, and Pinterest are also listing new positions as shifting consumer demand continues to shape unpredictable and historic hiring markets.
The Road to Recovery: Which Economies are Reopening?
We look at mobility rates as well as COVID-19 recovery rates for 41 economies, to see which countries are reopening for business.
The Road to Recovery: Which Economies are Reopening?
COVID-19 has brought the world to a halt—but after months of uncertainty, it seems that the situation is slowly taking a turn for the better.
Today’s chart measures the extent to which 41 major economies are reopening, by plotting two metrics for each country: the mobility rate and the COVID-19 recovery rate:
- Mobility Index
This refers to the change in activity around workplaces, subtracting activity around residences, measured as a percentage deviation from the baseline.
- COVID-19 Recovery Rate
The number of recovered cases in a country is measured as the percentage of total cases.
Data for the first measure comes from Google’s COVID-19 Community Mobility Reports, which relies on aggregated, anonymous location history data from individuals. Note that China does not show up in the graphic as the government bans Google services.
COVID-19 recovery rates rely on values from CoronaTracker, using aggregated information from multiple global and governmental databases such as WHO and CDC.
Reopening Economies, One Step at a Time
In general, the higher the mobility rate, the more economic activity this signifies. In most cases, mobility rate also correlates with a higher rate of recovered people in the population.
Here’s how these countries fare based on the above metrics.
|Country||Mobility Rate||Recovery Rate||Total Cases||Total Recovered|
Mobility data as of May 21, 2020 (Latest available). COVID-19 case data as of May 29, 2020.
In the main scatterplot visualization, we’ve taken things a step further, assigning these countries into four distinct quadrants:
1. High Mobility, High Recovery
High recovery rates are resulting in lifted restrictions for countries in this quadrant, and people are steadily returning to work.
New Zealand has earned praise for its early and effective pandemic response, allowing it to curtail the total number of cases. This has resulted in a 98% recovery rate, the highest of all countries. After almost 50 days of lockdown, the government is recommending a flexible four-day work week to boost the economy back up.
2. High Mobility, Low Recovery
Despite low COVID-19 related recoveries, mobility rates of countries in this quadrant remain higher than average. Some countries have loosened lockdown measures, while others did not have strict measures in place to begin with.
Brazil is an interesting case study to consider here. After deferring lockdown decisions to state and local levels, the country is now averaging the highest number of daily cases out of any country. On May 28th, for example, the country had 24,151 new cases and 1,067 new deaths.
3. Low Mobility, High Recovery
Countries in this quadrant are playing it safe, and holding off on reopening their economies until the population has fully recovered.
Italy, the once-epicenter for the crisis in Europe is understandably wary of cases rising back up to critical levels. As a result, it has opted to keep its activity to a minimum to try and boost the 65% recovery rate, even as it slowly emerges from over 10 weeks of lockdown.
4. Low Mobility, Low Recovery
Last but not least, people in these countries are cautiously remaining indoors as their governments continue to work on crisis response.
With a low 0.05% recovery rate, the United Kingdom has no immediate plans to reopen. A two-week lag time in reporting discharged patients from NHS services may also be contributing to this low number. Although new cases are leveling off, the country has the highest coronavirus-caused death toll across Europe.
The U.S. also sits in this quadrant with over 1.7 million cases and counting. Recently, some states have opted to ease restrictions on social and business activity, which could potentially result in case numbers climbing back up.
Over in Sweden, a controversial herd immunity strategy meant that the country continued business as usual amid the rest of Europe’s heightened regulations. Sweden’s COVID-19 recovery rate sits at only 13.9%, and the country’s -93% mobility rate implies that people have been taking their own precautions.
COVID-19’s Impact on the Future
It’s important to note that a “second wave” of new cases could upend plans to reopen economies. As countries reckon with these competing risks of health and economic activity, there is no clear answer around the right path to take.
COVID-19 is a catalyst for an entirely different future, but interestingly, it’s one that has been in the works for a while.
Without being melodramatic, COVID-19 is like the last nail in the coffin of globalization…The 2008-2009 crisis gave globalization a big hit, as did Brexit, as did the U.S.-China trade war, but COVID is taking it to a new level.
—Carmen Reinhart, incoming Chief Economist for the World Bank
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