- The Financial Times – Seven charts that show how the developed world is losing its edge
What is happening to the world economy? Here are some answers, in seven charts. They reveal a world undergoing profound changes. The most important transformation of recent decades has been the declining weight of the high-income countries in global economic activity. The “great divergence” of the 19th and early 20th centuries, when today’s high-income economies leapt ahead of the rest of the world in terms of wealth and power, has gone into remarkably rapid reverse. Where once there was divergence, we now see a “great convergence”. Yet it is also a limited convergence. The change is all about the rise of Asia and, most importantly, of China.
Comment
The interactive charts below offer a look at the rise of emerging market economies on the world stage. The first chart shows that, while the U.S. still accounts for the largest portion of world GDP, China is quickly closing in.
The second chart shows that, on a regional basis, East Asia & the Pacific actually account for a larger share of world GDP than Europe and North America.
Finally, the last chart shows a breakdown of contribution to world GDP based on income groups. High income economies still account for over 60% of world GDP.