The coronavirus recession is dramatically shrinking the global economy. According to the World Bank, we are currently in the worst recession since World War II.
This snapshot reveals at a high level the grand narrative over the last 40 years, which is the emergence of Asian economic power and the relative decline of the Western industrialised world.
Interesting to note:
– 2020 marks the start of the first decade where the U.S. does not have the largest economy in the world ($22.32T). First place belongs to China by a long shot ($29.47T)
– Before this decade, the U.S. consistently had the largest economy in the world for the last 40 years, growing from $2.86T in 1980 to a projected $23.18T next year.
– Over the last few decades, many Asian countries have seen their economies grow significantly, including China ($29.47T), India ($12.36T), Japan ($5.89T) and Indonesia ($4.01T).
– Asian countries reached the top of the rankings, and Western European countries declined. Italy is no longer in the top 10, and Germany, France and the U.K. have all fallen further down the ranking.
The IMF recently found that the cumulative loss of economic output due to the coronavirus will total about $9T through 2021. And although a lot remains unknown about the virus, the largest economies in the world will look very different as a result.
The coronavirus is scrambling the world economy. Here are the countries with the largest economies over the last 40 years.
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