WORLD ECONOMY : GROWTH . IN LAST 25 YEARS & FUTURE AHEAD

The World Economy has grown in the last twenty five years from 1990 to 2015 from  USD 23.7 Trillion to USD 73 T +.

If we divide this economic growth into buckets of the Top 20 Economies , Next 50 Economies , Bottom 20 Economies , Next Last 50 and the reaming Middle 80 ( Total countries being 220)

we see that in 1990 the Top 20 is worth 84 % of the Total world Economy whereas the Bottom 20 is worth only 0.01 % .

 There is some improvement in this in 2010 and 2015 when Top 20 comprises of 79 % of the world economy but still the Bottom 20 is worth 0.16 % only.

If we look at some of  the World's Top Economies , from 1970 to 2015 and the expected future 1n 2050 the world economy is expected to double to USD 146 T by 2050 and the Top 20 economies would be constituting 85 % of the total economy.

The top economies and their rankings and GDPs from 1970 to 2050 as follows

United Sates which was number 1 from 1970 would be displace to No 3 in 2050 with China and India expected to world's number 1 and 2 economies.

The biggest losers are Australia and Netherlands which are falling out of this list .

However in terms of GDP per Capita  India and China are still number 22 and 26 th and USA is also number 4th in 2015 which shows that either their are countries which are using their resources more productively ( theoretically ) or have population better employed into higher employment generating better value additing jobs.

Another co-relation was found about FDI investments where FDIs also made most of their investments in TOP 20 in 1990 ( 84% ) and in Next 50 (12%) .

However in the next 5 years terms they started investing in other countries as well but still 90 % of their investments were parked in Top 70 destinations only .

It is a known fact that Economies wherever FDI money has been invested has grown . But for FDI money to come in the Local Government needs to take lot of initiatives in terms of opeing up the economy and whichever economies have done that have got that benefit.

Looking at Country wise USA has retained it's No 1 position as the richest Economy with a growth of USD 10.3 T over 25 years.

China has grown same as USA during this period over a much smaller base of USD 737 Million and has become the second largest Economy of the World from 8th .

Japan is the only country among the Top 50 which has shown a reduction is GDP between 2015 & 1990 by USD 1 Trillion.

Success Stories : Benchmark : Minimum 5 Rank & 300 M improvement

( Ranking & Increase in GDP in Bracket )

Other Success stories are

India                 8 & 1700 M
Indonesia          6 & 625 M
Saudi Arabia    9 & 510 M
Turkey             5 & 490 M
 Nigeria          27 & 446 M
UAE               15 & 305 M

Now in we look at Country wise FDI investments and ranking their also USA is number 1 with highest investment both up to 1990 and till 2015 .

The second highest investment however is in Netherlands which in GDP terms is ranked 17th .

Also few locations which are  Tax Free Zones are also attracting FDI for routing investments like Luxembourg , Cayman Island , Britsh Virgin Island etc. but they do not featire in GDP as they are just used as investment destination. 

Most of the countries wherever FDI has come has grown with few exception


Countries which have grown without FDI

Republic of Korea
Iran
Venezuela
Egypt
Vietnam


Countries which could not grow even with FDI

Netherland FDI of USD 3.2 T , GDP Growth of only USD 300 Mln ( between 2015 to 1995)

Belgium FDI of USD 771M , GDP Growth of only USD 166 Mln ( between 2015 to 1995)

and many other like Chile , Hungary , Cyprus etc.

One other common point which all the countries which has grown exponentially their GDP has moved their resources from Agriculture towards Manufacturing