Economic growth definition
A country’s economic growth is measured by Nominal and real GDP. Nominal GDP is the country’s total income in a year while Real GDP is adjusted for inflation.
The standard indicators used to measure economic growth are the Nominal and Real GDP. Nominal GDP is the total income of a country in a year. Real GDP is the total income of a country adjusted for inflation.
However, these indicators are lagging and since MacroVar aims to predict economic conditions leading indicators are analysed instead.
Global GDP is an especially important economic factor to predict since GDP growth affects corporate earnings growth which in turn affects all global financial markets including stock markets.
Total world GDP in 2018 was 85.931 trillion according to the World Bank.
| World GDP 2018 (World Bank) | |||
| Rank | Country | GDP (Millions, $USD) | % of World GDP |
| World GDP (2018 – World Bank) | 85,930,754,374,374 | ||
| 1 | United States | 20,544,343,456,937 | 23.91% |
| 2 | Euro area | 13,646,587,749,131 | 15.88% |
| 3 | China | 13,608,151,864,638 | 15.84% |
| 4 | Japan | 4,971,323,079,772 | 5.79% |
| 5 | Germany | 3,947,620,162,503 | 4.59% |
| 6 | United Kingdom | 2,855,296,731,522 | 3.32% |
| 7 | France | 2,777,535,239,278 | 3.23% |
| 8 | India | 2,718,732,231,258 | 3.16% |
| 9 | Italy | 2,083,864,259,623 | 2.43% |
| 10 | Brazil | 1,885,482,534,238 | 2.19% |
| 11 | Canada | 1,713,341,704,877 | 1.99% |
| 12 | Russian Federation | 1,657,554,647,150 | 1.93% |
| 13 | Korea, Rep. | 1,619,423,701,170 | 1.88% |
| 14 | Australia | 1,433,904,348,500 | 1.67% |
| 15 | Spain | 1,419,041,949,910 | 1.65% |
| 16 | Mexico | 1,220,699,479,846 | 1.42% |
| 17 | Indonesia | 1,042,173,300,626 | 1.21% |
| 18 | Netherlands | 913,658,465,709 | 1.06% |
| 19 | Saudi Arabia | 786,521,831,572 | 0.92% |
| 20 | Turkey | 771,350,330,455 | 0.90% |
| 21 | Switzerland | 705,140,354,166 | 0.82% |
| 22 | Poland | 585,663,814,824 | 0.68% |
| 23 | Sweden | 556,086,488,937 | 0.65% |
| 24 | Belgium | 542,761,092,103 | 0.63% |
| 25 | Argentina | 519,871,519,808 | 0.60% |
| 26 | Thailand | 504,992,757,705 | 0.59% |
| 27 | Austria | 455,285,818,035 | 0.53% |
| 28 | Norway | 434,166,615,432 | 0.51% |
| 29 | United Arab Emirates | 414,178,942,592 | 0.48% |
| 30 | Nigeria | 397,269,616,081 | 0.46% |
US GDP is estimated at $20 trillion and represents 23.91 per cent of the world GDP. The Euro Zone’s GDP is $13.6 trillion representing 15.88% of the world GDP. China GDP is estimated at $13.6 trillion and represents 15.84% of World GDP.
The economies of the United States, Eurozone and China represent 55.63% of World GDP. The United States has historically driven global GDP. It is the most important economy in the world.