Global Religions

History

Religion has been a part of human history for as long as recorded history exists. It has
played a major role in shaping societies and cultures around the world. The world's five
major religions, Christianity, Islam, Hinduism, Buddhism, and Judaism, have all had a
profound impact on the course of human history.

Christianity is the world's largest religion, with over 2.4 billion adherents. It originated in
the Middle East in the 1st century CE and spread rapidly throughout the Roman Empire.
Christianity has been a major force in European and global history, and it continues to
play an important role in many societies around the world.

Islam is the world's second-largest religion, with over 1.9 billion adherents. It originated
in the Arabian Peninsula in the 7th century CE and spread rapidly throughout the Middle
East, North Africa, and Central Asia. Islam has had a major impact on the development
of Islamic law, culture, and art. It continues to play an important role in many societies
around the world.

Hinduism is the world's third-largest religion, with over 1.2 billion adherents. It originated
in India over 4,000 years ago and is one of the oldest religions in the world. Hinduism is
a diverse religion with a wide range of beliefs and practices. It has had a major impact
on Indian culture and society, and it continues to play an important role in the lives of
many Indians.

Buddhism is the world's fourth-largest religion, with over 500 million adherents. It
originated in India in the 6th century BCE and spread to other parts of Asia, including
China, Japan, and Korea. Buddhism is a diverse religion with a wide range of beliefs
and practices. It has had a major impact on Asian culture and society, and it continues
to play an important role in the lives of many Asians.

Judaism is the world's fifth-largest religion, with over 15 million adherents. It originated
in the Middle East in the 2nd millennium BCE and is one of the oldest religions in the
world. Judaism is a monotheistic religion that teaches that there is only one God. It has
had a major impact on the development of Western civilization, and it continues to play
an important role in the lives of many Jews.

Conflicts

Religion has also been a source of conflict throughout history. Religious wars have
been fought for centuries over issues such as control of holy sites, theological
differences, and political power. Some of the most notable religious conflicts in history
include the Crusades, the Thirty Years' War, and the Israeli-Palestinian conflict.
In recent years, there has been a rise in religious extremism and violence. This has
been fueled by a number of factors, including poverty, inequality, and political instability.
Religious extremist groups such as al-Qaeda and ISIS have carried out terrorist attacks
against civilian targets all over the world.

Role in Globalization

Globalization has had a significant impact on religion. In the past, religions were largely
confined to specific regions or cultures. However, globalization has made it easier for
people to travel and communicate across borders. This has led to a greater
intermingling of different religions and cultures.
Globalization has also led to the spread of religious ideas and practices to new parts of
the world. For example, Christianity and Islam have both grown rapidly in Africa in
recent decades. This has led to some challenges, as religious minorities have
sometimes faced discrimination and persecution.
Despite the challenges, globalization has also created new opportunities for religious
communities. Religious groups are now able to connect with each other more easily and
share resources. They are also able to reach a wider audience with their message.
Here are some specific examples of the role of global religions in globalization:

 Religious groups are often at the forefront of providing humanitarian aid and
disaster relief. For example, Catholic Relief Services and Islamic Relief USA are
two of the largest humanitarian aid organizations in the world.
 Religious groups are also involved in promoting peace and reconciliation. For
example, the Interfaith Center for Peace and Justice in New York City is a multi-
faith organization that works to promote interfaith dialogue and understanding.
 Religious groups are also involved in education and healthcare. For example, the
Jesuits operate schools and universities in over 100 countries around the world.
 Religious groups are also involved in business and finance. For example, Islamic
banks and investment funds are becoming increasingly popular around the world.

Overall, global religions play a complex and multifaceted role in globalization. They can
be a source of conflict and division, but they can also be a force for good in the world.
—--------------------------------------------------------------------------------------------------------------

Global Migration

Global migration is the movement of people from one country to another. It is a complex
phenomenon with a variety of causes, effects, and social changes.

Causes of Global Migration

There are many factors that can motivate people to migrate, including:

 Economic factors: People may migrate in search of better job opportunities, higher
wages, or a better standard of living.
  Political factors: People may migrate to escape persecution, violence, or war.
 Environmental factors: People may migrate to escape natural disasters or climate
change.
 Social factors: People may migrate to reunite with family and friends, or to pursue a
better education or career.

Effects of Global Migration

Global migration has both positive and negative effects on both origin and destination countries.

Positive effects:

 Economic benefits: Migrants can contribute to the economic growth of destination

countries by filling labor shortages, starting businesses, and paying taxes.
 Cultural diversity: Migrants can bring new ideas, perspectives, and traditions to
destination countries.
 Remittances: Migrants often send money back to their home countries, which can help
to reduce poverty and improve living standards.

Negative effects:

 Brain drain: When skilled workers migrate from origin countries, this can be a major loss
for those countries.
 Social tensions: Migration can sometimes lead to social tensions in destination
countries, as migrants may be seen as competing with locals for jobs and resources.
 Xenophobia and discrimination: Migrants may face xenophobia and discrimination in
destination countries, which can make it difficult for them to integrate into society.

Social Change

Global migration can also lead to social change in both origin and destination countries.

Social change in origin countries:

 Changes in family structure: When migrants leave their home countries, this can lead to
changes in family structure. For example, children may be left behind to be raised by
grandparents or other relatives.
 Changes in gender roles: Migration can also lead to changes in gender roles. For
example, women in origin countries may have to take on more responsibilities, such as
running the household and raising children.
 Changes in cultural values: Migration can also lead to changes in cultural values. For
example, migrants may adopt new values and practices from the destination country.

Social change in destination countries:

  Changes in ethnic and religious diversity: Migration can lead to changes in ethnic and
religious diversity in destination countries. This can lead to new challenges and
opportunities for social integration.
 Changes in labor markets: Migration can also lead to changes in labor markets in
destination countries. For example, migrants may fill labor shortages in certain sectors,
such as agriculture and healthcare.
 Changes in political and social movements: Migration can also lead to changes in
political and social movements in destination countries. For example, migrant
communities may organize to advocate for their rights and interests.

Conclusion

Global migration is a complex phenomenon with a variety of causes, effects, and social
changes. It can have both positive and negative effects on both origin and destination countries.
It is important to understand the different factors that drive migration and the impact that it has
on societies.

Here are some additional thoughts on the social change that can be brought about by global
migration:

 Migration can lead to the formation of new social and cultural identities. Migrants often
have to blend their own cultural identities with those of the destination country. This can
lead to the creation of new hybrid identities.
 Migration can also lead to the transformation of existing social and cultural institutions.
For example, migrant communities may establish their own schools, churches, and
mosques. This can help to preserve their cultural identity and traditions.
 Migration can also promote social cohesion and understanding between different
cultures. By interacting with people from different backgrounds, migrants can learn about
different cultures and perspectives. This can help to build bridges between different
groups and promote social cohesion.

Overall, global migration is a powerful force for social change. It can lead to the formation of
new identities, the transformation of existing institutions, and the promotion of social cohesion.

____________________________________________________________________________

Global Cities

Global cities today:

 More connected and more diverse: Global cities today are more connected to
each other and more diverse than they were 20 years ago. This is due to
advances in transportation and communication technology, as well as increased
globalization.
 More powerful and influential: Global cities today are also more powerful and
influential than they were 20 years ago. This is due to their economic, political,
and cultural clout.
  More concentrated: Global cities are becoming more concentrated, with a smaller
number of cities dominating the global economy. This is due to the increasing
importance of knowledge-based industries, which are concentrated in a few key
cities.

Here are some specific examples of these changes:

 Connectivity: In 2003, there were only 216 million internet users worldwide. Today, there
are over 4.6 billion internet users worldwide. This has made it easier for global cities to
stay connected to each other and to the rest of the world.
 Diversity: The population of global cities is becoming more diverse. For example, in
2003, the population of London was 7.4 million. Today, it is over 9 million. Of that
population, over 37% are foreign-born.
 Power and influence: Global cities are playing an increasingly important role in the global
economy. In 2003, the top 10 global cities accounted for 14% of global GDP. Today,
they account for over 20% of global GDP.
 Concentration: The gap between global cities and other cities is growing wider. In 2003,
the top 10 global cities produced 25% of global GDP. Today, they produce over 30% of
global GDP.

Global cities 20 years ago:

 Less connected and less diverse: Global cities 20 years ago were less connected to
each other and less diverse than they are today. This was due to less advanced
transportation and communication technology, as well as less globalization.
 Less powerful and influential: Global cities 20 years ago were also less powerful and
influential than they are today. This was due to less economic, political, and cultural
clout.
 Less concentrated: Global cities were less concentrated 20 years ago, with a larger
number of cities sharing the global economic stage. This was due to the less important
role of knowledge-based industries.

Here are some specific examples of these differences:

 Connectivity: In 2003, there were only 216 million internet users worldwide. This means
that only a small fraction of the world's population was able to connect to the internet.
 Diversity: The population of global cities 20 years ago was less diverse. For example, in
2003, the population of London was 7.4 million. Of that population, only 28% were
foreign-born.
 Power and influence: Global cities were playing a less important role in the global
economy 20 years ago. In 2003, the top 10 global cities accounted for 14% of global
GDP.
 Concentration: The gap between global cities and other cities was less wide 20 years
ago. In 2003, the top 10 global cities produced 25% of global GDP.
Here are 10 examples of global cities, with images:

1. New York City, USA

2. London, UK

3. Tokyo, Japan
4. Paris, France

5. Singapore

6. Hong Kong, China

7. Shanghai, China

8. Sydney, Australia

9. Los Angeles, USA

 10. Seoul, South Korea

These cities are considered to be global cities because they are highly connected to
each other and to the rest of the world, and they play an important role in the global
economy. They are also home to a large number of multinational corporations and
financial institutions, and they attract people from all over the world to live, work, and
study.
Global cities are important because they are the engines of the global economy. They
are where innovation happens and where new businesses are born. They are also
where people from all over the world come together to share ideas and cultures.

Conclusion:
Global cities today are more connected, more diverse, more powerful, and more concentrated
than they were 20 years ago. This is due to advances in technology, globalization, and the
increasing importance of knowledge-based industries.

What Is Gross Domestic Product (GDP)?

Gross domestic product (GDP) is the total monetary or market value of all the finished
goods and services produced within a country’s borders in a specific time period. As a
broad measure of overall domestic production, it functions as a comprehensive
scorecard of a given country’s economic health.

Though GDP is typically calculated on an annual basis, it is sometimes calculated on a

quarterly basis as well. In the U.S., for example, the government releases
an annualized GDP estimate for each fiscal quarter and also for the calendar year. The
individual data sets included in this report are given in real terms, so the data is
adjusted for price changes and is, therefore, net of inflation.
KEY TAKEAWAYS

 Gross domestic product is the monetary value of all finished goods and services
made within a country during a specific period.
 GDP provides an economic snapshot of a country, used to estimate the size of
an economy and its growth rate.
 GDP can be calculated in three ways, using expenditures, production, or
incomes and it can be adjusted for inflation and population to provide deeper
insights.
 Real GDP takes into account the effects of inflation while nominal GDP does
not.
 Though it has limitations, GDP is a key tool to guide policymakers, investors,
and businesses in strategic decision-making.

Investopedia / Zoe Hansen

Understanding Gross Domestic Product (GDP)

The calculation of a country’s GDP encompasses all private and public consumption,
government outlays, investments, additions to private inventories, paid-in construction
costs, and the foreign balance of trade. Exports are added to the value and imports are
subtracted.

Of all the components that make up a country’s GDP, the foreign balance of trade is
especially important. The GDP of a country tends to increase when the total value of
goods and services that domestic producers sell to foreign countries exceeds the total
value of foreign goods and services that domestic consumers buy. When this situation
occurs, a country is said to have a trade surplus.

If the opposite situation occurs—that is, if the amount that domestic consumers spend
on foreign products is greater than the total sum of what domestic producers are able
to sell to foreign consumers—it is called a trade deficit. In this situation, the GDP of a
country tends to decrease.

GDP can be computed on a nominal basis or a real basis, the latter accounting for
inflation. Overall, real GDP is a better method for expressing long-term national
economic performance since it uses constant dollars.

Let's say one country had a nominal GDP of $100 billion in 2012. By 2022, its nominal
GDP grew to $150 billion. Prices also rose by 100% over the same period. In this
example, if you looked solely at its nominal GDP, the country's economy appears to be
performing well. However, the real GDP (expressed in 2012 dollars) would only be $75
billion, revealing that an overall decline in real economic performance actually occurred
during this time.
5.2%
The annual rate of increase for U.S. GDP in the third quarter of 2023. U.S. GDP
recorded a 2.1% increase during the second quarter of 2023.

Types of Gross Domestic Product

GDP can be reported in several ways, each of which provides slightly different
information.

Nominal GDP
Nominal GDP is an assessment of economic production in an economy that includes
current prices in its calculation. In other words, it doesn’t strip out inflation or the pace
of rising prices, which can inflate the growth figure.

All goods and services counted in nominal GDP are valued at the prices that those
goods and services are actually sold for in that year. Nominal GDP is evaluated in
either the local currency or U.S. dollars at currency market exchange rates to compare
countries’ GDPs in purely financial terms.

Nominal GDP is used when comparing different quarters of output within the same
year. When comparing the GDP of two or more years, real GDP is used. This is
because, in effect, the removal of the influence of inflation allows the comparison of the
different years to focus solely on volume.

Real GDP
Real GDP is an inflation-adjusted measure that reflects the number of goods and
services produced by an economy in a given year, with prices held constant from year
to year to separate out the impact of inflation or deflation from the trend in output over
time. Since GDP is based on the monetary value of goods and services, it is subject to
inflation.

Rising prices tend to increase a country’s GDP, but this does not necessarily reflect
any change in the quantity or quality of goods and services produced. Thus, by looking
just at an economy’s nominal GDP, it can be difficult to tell whether the figure has risen
because of a real expansion in production or simply because prices rose.

Economists use a process that adjusts for inflation to arrive at an economy’s real GDP.
By adjusting the output in any given year for the price levels that prevailed in a
reference year, called the base year, economists can adjust for inflation’s impact. This
way, it is possible to compare a country’s GDP from one year to another and see if
there is any real growth.

Real GDP is calculated using a GDP price deflator, which is the difference in prices
between the current year and the base year. For example, if prices rose by 5% since
the base year, then the deflator would be 1.05. Nominal GDP is divided by this deflator,
yielding real GDP. Nominal GDP is usually higher than real GDP because inflation is
typically a positive number.

Real GDP accounts for changes in market value and thus narrows the difference
between output figures from year to year. If there is a large discrepancy between a
nation’s real GDP and nominal GDP, this may be an indicator of significant inflation or
deflation in its economy.

GDP Per Capita

GDP per capita is a measurement of the GDP per person in a country’s population. It
indicates that the amount of output or income per person in an economy can indicate
average productivity or average living standards. GDP per capita can be stated in
nominal, real (inflation-adjusted), or purchasing power parity (PPP) terms.

At a basic interpretation, per-capita GDP shows how much economic production value
can be attributed to each individual citizen. This also translates to a measure of overall
national wealth since GDP market value per person also readily serves as a prosperity
measure.

Per-capita GDP is often analyzed alongside more traditional measures of GDP.

Economists use this metric for insight into their own country’s domestic productivity and
the productivity of other countries. Per-capita GDP considers both a country’s GDP and
its population. Therefore, it can be important to understand how each factor contributes
to the overall result and is affecting per-capita GDP growth.

If a country’s per-capita GDP is growing with a stable population level, for example, it
could be the result of technological progressions that are producing more with the
same population level. Some countries may have a high per-capita GDP but a small
population, which usually means they have built up a self-sufficient economy based on
an abundance of special resources.

GDP Growth Rate

The GDP growth rate compares the year-over-year (or quarterly) change in a country’s
economic output to measure how fast an economy is growing. Usually expressed as a
percentage rate, this measure is popular for economic policymakers because GDP
growth is thought to be closely connected to key policy targets such as inflation and
unemployment rates.

If GDP growth rates accelerate, it may be a signal that the economy is overheating and
the central bank may seek to raise interest rates. Conversely, central banks see a
shrinking (or negative) GDP growth rate (i.e., a recession) as a signal that rates should
be lowered and that stimulus may be necessary.

GDP Purchasing Power Parity (PPP)

While not directly a measure of GDP, economists look at PPP to see how one country’s
GDP measures up in international dollars using a method that adjusts for differences in
local prices and costs of living to make cross-country comparisons of real output, real
income, and living standard.

GDP Formula

GDP can be determined via three primary methods. All three methods should yield the
same figure when correctly calculated. These three approaches are often termed the
expenditure approach, the output (or production) approach, and the income approach.

The Expenditure Approach

The expenditure approach, also known as the spending approach, calculates spending
by the different groups that participate in the economy. The U.S. GDP is primarily
measured based on the expenditure approach. This approach can be calculated using
the following formula:

GDP=C+G+I+NXwhere:C=ConsumptionG=Government spendingI=InvestmentNX=Net
exportsGDP=C+G+I+NXwhere:C=ConsumptionG=Government
spendingI=InvestmentNX=Net exports

All of these activities contribute to the GDP of a country. Consumption refers to private
consumption expenditures or consumer spending. Consumers spend money to acquire
goods and services, such as groceries and haircuts. Consumer spending is the biggest
component of GDP, accounting for more than two-thirds of the U.S. GDP.

Consumer confidence, therefore, has a very significant bearing on economic growth. A

high confidence level indicates that consumers are willing to spend, while a low
confidence level reflects uncertainty about the future and an unwillingness to spend.

Government spending represents government consumption expenditure and gross

investment. Governments spend money on equipment, infrastructure, and payroll.
Government spending may become more important relative to other components of a
country’s GDP when consumer spending and business investment both decline
sharply. (This may occur in the wake of a recession, for example.)

Investment refers to private domestic investment or capital expenditures. Businesses

spend money to invest in their business activities. For example, a business may buy
machinery. Business investment is a critical component of GDP since it increases the
productive capacity of an economy and boosts employment levels.

The net exports formula subtracts total exports from total imports (NX = Exports -
Imports). The goods and services that an economy makes that are exported to other
countries, less the imports that are purchased by domestic consumers, represent a
country’s net exports. All expenditures by companies located in a given country, even if
they are foreign companies, are included in this calculation.
The Production (Output) Approach
The production approach is essentially the reverse of the expenditure approach.
Instead of measuring the input costs that contribute to economic activity, the production
approach estimates the total value of economic output and deducts the cost
of intermediate goods that are consumed in the process (like those of materials and
services). Whereas the expenditure approach projects forward from costs, the
production approach looks backward from the vantage point of a state of completed
economic activity.

The Income Approach

The income approach represents a kind of middle ground between the two other
approaches to calculating GDP. The income approach calculates the income earned by
all the factors of production in an economy, including the wages paid to labor, the rent
earned by land, the return on capital in the form of interest, and corporate profits.

The income approach factors in some adjustments for those items that are not
considered payments made to factors of production. For one, there are some taxes,
such as sales taxes and property taxes, that are classified as indirect business taxes.

In addition, depreciation, which is a reserve that businesses set aside to account for
the replacement of equipment that tends to wear down with use, is also added to the
national income. All of this together constitutes a nation’s income.

GDP vs. GNP vs. GNI

Although GDP is a widely used metric, there are other ways of measuring the
economic growth of a country. While GDP measures the economic activity within the
physical borders of a country (whether the producers are native to that country or
foreign-owned entities), gross national product (GNP) is a measurement of the overall
production of people or corporations native to a country, including those based abroad.
GNP excludes domestic production by foreigners.

Gross national income (GNI) is another measure of economic growth. It is the sum of
all income earned by citizens or nationals of a country (regardless of whether the
underlying economic activity takes place domestically or abroad). The relationship
between GNP and GNI is similar to the relationship between the production (output)
approach and the income approach used to calculate GDP.

GNP uses the production approach, while GNI uses the income approach. With GNI,
the income of a country is calculated as its domestic income, plus its indirect business
taxes and depreciation (as well as its net foreign factor income ). The figure for net
foreign factor income is calculated by subtracting all payments made to foreign
companies and individuals from all payments made to domestic businesses.

In an increasingly global economy, GNI has been put forward as a potentially

better metric for overall economic health than GDP. Because certain countries have
most of their income withdrawn abroad by foreign corporations and individuals, their
GDP figure is much higher than the figure that represents their GNI.

For example, in 2019, Luxembourg had a significant difference between its GDP and
GNI, mainly due to large payments made to the rest of the world via foreign
corporations that did business in Luxembourg, attracted by the tiny nation’s favorable
tax laws. On the contrary, GNI and GDP in the U.S. do not differ substantially. U.S.
GDP was $27.64 trillion as of Q3-2023 while its GNI was about $25.84 trillion at the
end of 2022.

Adjustments to GDP

A number of adjustments can be made to a country’s GDP to improve the usefulness of

this figure. For economists, a country’s GDP reveals the size of the economy but
provides little information about the standard of living in that country. Part of the reason
for this is that population size and cost of living are not consistent around the world.
Economists can use tax-to-GDP to get a better understanding of how a nation's tax
revenue impacts its economy and its people.

For example, comparing the nominal GDP of China to the nominal GDP of Ireland
would not provide much meaningful information about the realities of living in those
countries because China has approximately 300 times the population of Ireland.

To help solve this problem, statisticians sometimes compare GDP per capita between
countries. GDP per capita is calculated by dividing a country’s total GDP by its
population, and this figure is frequently cited to assess the nation’s standard of living.
Even so, the measure is still imperfect.

Suppose China has a GDP per capita of $1,500, while Ireland has a GDP per capita of
$15,000. This doesn’t necessarily mean that the average Irish person is 10 times better
off than the average Chinese person. GDP per capita doesn’t account for how
expensive it is to live in a country.

PPP attempts to solve this problem by comparing how many goods and services an
exchange-rate-adjusted unit of money can purchase in different countries—comparing
the price of an item, or basket of items, in two countries after adjusting for the
exchange rate between the two, in effect.

Real per-capita GDP, adjusted for purchasing power parity, is a heavily refined statistic
to measure true income, which is an important element of well-being. An individual in
Ireland might make $100,000 a year, while an individual in China might make $50,000
a year. In nominal terms, the worker in Ireland is better off. But if a year’s worth of food,
clothing, and other items costs three times as much in Ireland as in China, however,
then the worker in China has a higher real income.

How to Use GDP Data

Most nations release GDP data every month and quarter. In the U.S., the Bureau of
Economic Analysis (BEA) publishes an advance release of quarterly GDP four weeks
after the quarter ends, and a final release three months after the quarter ends. The
BEA releases are exhaustive and contain a wealth of detail, enabling economists and
investors to obtain information and insights on various aspects of the economy.

GDP’s market impact is generally limited since it is backward-looking, and a substantial

amount of time has already elapsed between the quarter-end and GDP data release.
However, GDP data can have an impact on markets if the actual numbers differ
considerably from expectations.

Because GDP provides a direct indication of the health and growth of the economy,
businesses can use GDP as a guide to their business strategy. Government entities,
such as the Fed in the U.S., use the growth rate and other GDP stats as part of their
decision process in determining what type of monetary policies to implement.

If the growth rate is slowing, they might implement an expansionary monetary policy to
try to boost the economy. If the growth rate is robust, they might use monetary policy to
slow things down to try to ward off inflation.

Real GDP is the indicator that says the most about the health of the economy. It is
widely followed and discussed by economists, analysts, investors, and policymakers.
The advance release of the latest data will almost always move markets, although that
impact can be limited, as noted above.

GDP and Investing

Investors watch GDP since it provides a framework for decision-making. The corporate
profits and inventory data in the GDP report are a great resource for equity investors,
as both categories show total growth during the period; corporate profits data also
displays pre-tax profits, operating cash flows, and breakdowns for all major sectors of
the economy.

Comparing the GDP growth rates of different countries can play a part in asset
allocation, aiding decisions about whether to invest in fast-growing economies abroad
and if so, which ones.

One interesting metric that investors can use to get a sense of the valuation of an
equity market is the ratio of total market capitalization to GDP , expressed as a
percentage. The closest equivalent to this in terms of stock valuation is a company’s
market cap to total sales (or revenues), which in per-share terms is the well-
known price-to-sales ratio.

Just as stocks in different sectors trade at widely divergent price-to-sales ratios,

different nations trade at market-cap-to-GDP ratios that are literally all over the map.
For example, according to the World Bank, the U.S. had a market-cap-to-GDP ratio of
193.3% for 2020, while China had a ratio of just over 83.2% and Hong Kong had a ratio
of 1,777.2%.

However, the utility of this ratio lies in comparing it to historical norms for a particular
nation. As an example, the U.S. had a market-cap-to-GDP ratio of 141.6% at the end of
2006, which dropped to 78.5% by the end of 2008.In retrospect, these represented
zones of substantial overvaluation and undervaluation, respectively, for U.S. equities.

The biggest downside of this data is its lack of timeliness; investors only get one
update per quarter, and revisions can be large enough to significantly alter the
percentage change in GDP.

History of GDP

The concept of GDP was first proposed in 1937 in a report to the U.S. Congress in
response to the Great Depression, conceived of and presented by an economist at
the National Bureau of Economic Research (NBER) , Simon Kuznets.

At the time, the preeminent system of measurement was GNP. After the Bretton
Woods conference in 1944, GDP was widely adopted as the standard means for
measuring national economies; however, the U.S. continued to use GNP as its official
measure of economic welfare until 1991, after which it switched to GDP.

Beginning in the 1950s, however, some economists and policymakers began to

question GDP. Some observed, for example, a tendency to accept GDP as an absolute
indicator of a nation’s failure or success, despite its failure to account for health,
happiness, (in)equality, and other constituent factors of public welfare. In other words,
these critics drew attention to a distinction between economic progress and social
progress.

Most authorities, like Arthur Okun, an economist for President John F. Kennedy’s
Council of Economic Advisers, held firm to the belief that GDP is an absolute indicator
of economic success, claiming that for every increase in GDP, there would be a
corresponding drop in unemployment.

Criticisms of GDP

There are, of course, drawbacks to using GDP as an indicator. In addition to the lack of
timeliness, some criticisms of GDP as a measure are:

 It ignores the value of informal or unrecorded economic activity. GDP relies on

recorded transactions and official data, so it does not take into account the
extent of informal economic activity. GDP fails to account for the value of under-
the-table employment, underground market activity, or unremunerated volunteer
work, which can all be significant in some nations and cannot account for the
 value of leisure time or household production, which are ubiquitous conditions of
human life in all societies.
 It is geographically limited in a globally open economy. GDP does not take into
account profits earned in a nation by overseas companies that are remitted back
to foreign investors. This can overstate a country’s actual economic output. For
example, Ireland had a GDP of $529.24 billion and GNI of $383.48 billion in
2022, the difference of about $145.76 billion (or over 28% of GDP) largely being
due to profit repatriation by foreign companies based in Ireland.
 It emphasizes material output without considering overall well-being. GDP
growth alone cannot measure a nation’s development or its citizens’ well-being,
as noted above. For instance, a nation may be experiencing rapid GDP growth,
but this may impose a significant cost to society in terms of environmental
impact and an increase in income disparity.
 It ignores business-to-business activity. GDP considers only final goods
production and new capital investment and deliberately nets out intermediate
spending and transactions between businesses. By doing so, GDP overstates
the importance of consumption relative to production in the economy and is less
sensitive as an indicator of economic fluctuations compared to metrics that
include business-to-business activity.
 It counts costs and waste as economic benefits. GDP counts all final private and
government spending as additions to income and output for society, regardless
of whether they are actually productive or profitable. This means that obviously
unproductive or even destructive activities are routinely counted as economic
output and contribute to growth in GDP. For example, this includes spending
directed toward extracting or transferring wealth between members of society
rather than producing wealth (such as the administrative costs of taxation or
money spent on lobbying and rent-seeking); spending on investment projects for
which the necessary complementary goods and labor are not available or for
which actual consumer demand does not exist (such as the construction of
empty ghost cities or bridges to nowhere, unconnected to any road network);
and spending on goods and services that are either themselves destructive or
only necessary to offset other destructive activities, rather than to create new
wealth (such as the production of weapons of war or spending on policing and
anti-crime measures).

Global Sources for Country GDP Data

The World Bank hosts one of the most reliable web-based databases. It has one of the
best and most comprehensive lists of countries for which it tracks GDP data.
The International Money Fund (IMF) also provides GDP data through its multiple
databases, such as World Economic Outlook and International Financial Statistics.

Another highly reliable source of GDP data is the Organization for Economic
Cooperation and Development (OECD) . The OECD not only provides historical data
but also forecasts GDP growth. The disadvantage of using the OECD database is that
it tracks only OECD member countries and a few nonmember countries.
In the U.S., the Fed collects data from multiple sources, including a country’s statistical
agencies and The World Bank. The only drawback to using a Fed database is a lack of
updating in GDP data and an absence of data for certain countries.

The BEA is a division of the U.S. Department of Commerce. It issues its own analysis
document with each GDP release, which is a great investor tool for analyzing figures
and trends and reading highlights of the very lengthy full release.

What Is a Simple Definition of GDP?

Gross domestic product is a measurement that seeks to capture a country’s economic

output. Countries with larger GDPs will have a greater amount of goods and services
generated within them, and will generally have a higher standard of living. For this
reason, many citizens and political leaders see GDP growth as an important measure
of national success, often referring to GDP growth and economic growth
interchangeably. Due to various limitations, however, many economists have argued
that GDP should not be used as a proxy for overall economic success, much less the
success of a society.

Which Country Has the Highest GDP?

The countries with the two highest GDPs in the world are the United States and China.
However, their ranking differs depending on how you measure GDP. Using nominal
GDP, the United States comes in first with a GDP of $25.46 trillion as of 2022,
compared to $17.96 trillion in China.

Many economists argue that it is more accurate to use purchasing power parity GDP
as a measure of national wealth. By this metric, China is actually the world leader with
a 2022 PPP GDP of $30.33 trillion, followed by $25.46 trillion in the United States.

Is a High GDP Good?

Most people perceive a higher GDP to be a good thing because it is associated with
greater economic opportunities and an improved standard of material well-being. It is
possible, however, for a country to have a high GDP and still be an unattractive place
to live, so it is important to also consider other measurements.

For example, a country could have a high GDP and a low per-capita GDP, suggesting
that significant wealth exists but is concentrated in the hands of very few people. One
way to address this is to look at GDP alongside another measure of economic
development, such as the Human Development Index (HDI)

The Bottom Line

In their seminal textbook Economics, Paul Samuelson and William Nordhaus neatly
sum up the importance of the national accounts and GDP. They liken the ability of GDP
to give an overall picture of the state of the economy to that of a satellite in space that
can survey the weather across an entire continent.31

GDP enables policymakers and central banks to judge whether the economy is
contracting or expanding, whether it needs a boost or restraint, and if a threat such as
a recession or inflation looms on the horizon. Like any measure, GDP has its
imperfections. In recent decades, governments have created various nuanced
modifications in attempts to increase GDP accuracy and specificity. Means of
calculating GDP have also evolved continually since its conception to keep up with
evolving measurements of industry activity and the generation and consumption of
new, emerging forms of intangible assets.

SPONSORED
Buy, Trade, and Hold 350+ Cryptocurrencies
Join 120 million registered users exchanging the world's most popular
cryptocurrencies. Purchase and trade Bitcoin, Ethereum, or BNB, Binance's native
coin. Whether you're a beginner trader, crypto enthusiast, or professional, you'll benefit
from access to the global crypto markets while enjoying some of the lowest fees in the
business. Plus, tools and guides that make it easy to safely and securely sell, buy and
convert NFTs on the Binance app.
What are the Sustainable Development Goals?
The Sustainable Development Goals (SDGs), also known as the
Global Goals, were adopted by the United Nations in 2015 as a
universal call to action to end poverty, protect the planet, and ensure
that by 2030 all people enjoy peace and prosperity.

The 17 SDGs are integrated—they recognize that action in one area

will affect outcomes in others, and that development must balance
social, economic and environmental sustainability.

Countries have committed to prioritize progress for those who're

furthest behind. The SDGs are designed to end poverty, hunger,
AIDS, and discrimination against women and girls.

The creativity, knowhow, technology and financial resources from all

of society is necessary to achieve the SDGs in every context.
Goal 1

NO POVERTY
Eradicating poverty in all its forms remains one of the greatest
challenges facing humanity. While the number of people living in
extreme poverty dropped by more than half between 1990 and 2015,
too many are still struggling for the most basic human needs.

As of 2015, about 736 million people still lived on less than US$1.90 a
day; many lack food, clean drinking water and sanitation. Rapid
growth in countries such as China and India has lifted millions out of
poverty, but progress has been uneven. Women are more likely to be
poor than men because they have less paid work, education, and own
less property.

Progress has also been limited in other regions, such as South Asia
and sub-Saharan Africa, which account for 80 percent of those living
in extreme poverty. New threats brought on by climate change, conflict
and food insecurity, mean even more work is needed to bring people
out of poverty.

The SDGs are a bold commitment to finish what we started, and end
poverty in all forms and dimensions by 2030. This involves targeting
the most vulnerable, increasing basic resources and services, and
supporting communities affected by conflict and climate-related
disasters.

million
736 million people still live in extreme poverty.
percent
10 percent of the world’s population live in extreme poverty, down
from 36 percent in 1990.
billion
Some 1.3 billion people live in multidimensional poverty.
percent
Half of all people living in poverty are under 18.
in 10
One person in every 10 is extremely poor.

Goal targets
 By 2030, reduce at least by half the proportion of men, women
and children of all ages living in poverty in all its dimensions
according to national definitions
 Implement nationally appropriate social protection systems and
measures for all, including floors, and by 2030 achieve
substantial coverage of the poor and the vulnerable
 By 2030, ensure that all men and women, in particular the poor
and the vulnerable, have equal rights to economic resources, as
well as access to basic services, ownership and control over
land and other forms of property, inheritance, natural resources,
appropriate new technology and financial services, including
microfinance
 By 2030, build the resilience of the poor and those in vulnerable
situations and reduce their exposure and vulnerability to climate-
 related extreme events and other economic, social and
environmental shocks and disasters
 Ensure significant mobilization of resources from a variety of
sources, including through enhanced development cooperation,
in order to provide adequate and predictable means for
developing countries, in particular least developed countries, to
implement programmes and policies to end poverty in all its
dimensions
 Create sound policy frameworks at the national, regional and
international levels, based on pro-poor and gender-sensitive
development strategies, to support accelerated investment in
poverty eradication actions
Goal 1

NO POVERTY
Eradicating poverty in all its forms remains one of the greatest
challenges facing humanity. While the number of people living in
extreme poverty dropped by more than half between 1990 and 2015,
too many are still struggling for the most basic human needs.

As of 2015, about 736 million people still lived on less than US$1.90 a
day; many lack food, clean drinking water and sanitation. Rapid
growth in countries such as China and India has lifted millions out of
poverty, but progress has been uneven. Women are more likely to be
poor than men because they have less paid work, education, and own
less property.

Progress has also been limited in other regions, such as South Asia
and sub-Saharan Africa, which account for 80 percent of those living
in extreme poverty. New threats brought on by climate change, conflict
and food insecurity, mean even more work is needed to bring people
out of poverty.

The SDGs are a bold commitment to finish what we started, and end
poverty in all forms and dimensions by 2030. This involves targeting
the most vulnerable, increasing basic resources and services, and
supporting communities affected by conflict and climate-related
disasters.

736
million
736 million people still live in extreme poverty.
10
percent
10 percent of the world’s population live in extreme poverty, down
from 36 percent in 1990.

1.3
billion
Some 1.3 billion people live in multidimensional poverty.

50
percent
Half of all people living in poverty are under 18.

1
in 10
One person in every 10 is extremely poor.
Goal targets
 By 2030, reduce at least by half the proportion of men, women
and children of all ages living in poverty in all its dimensions
according to national definitions
 Implement nationally appropriate social protection systems and
measures for all, including floors, and by 2030 achieve
substantial coverage of the poor and the vulnerable
 By 2030, ensure that all men and women, in particular the poor
and the vulnerable, have equal rights to economic resources, as
well as access to basic services, ownership and control over
land and other forms of property, inheritance, natural resources,
appropriate new technology and financial services, including
microfinance
 By 2030, build the resilience of the poor and those in vulnerable
situations and reduce their exposure and vulnerability to climate-
related extreme events and other economic, social and
environmental shocks and disasters
 Ensure significant mobilization of resources from a variety of
sources, including through enhanced development cooperation,
in order to provide adequate and predictable means for
developing countries, in particular least developed countries, to
implement programmes and policies to end poverty in all its
dimensions
 Create sound policy frameworks at the national, regional and
international levels, based on pro-poor and gender-sensitive
development strategies, to support accelerated investment in
poverty eradication actions
Goal 2

ZERO HUNGER
The number of undernourished people has dropped by almost half in
the past two decades because of rapid economic growth and
increased agricultural productivity. Many developing countries that
used to suffer from famine and hunger can now meet their nutritional
needs. Central and East Asia, Latin America and the Caribbean have
all made huge progress in eradicating extreme hunger.

Unfortunately, extreme hunger and malnutrition remain a huge barrier

to development in many countries. There are 821 million people
estimated to be chronically undernourished as of 2017, often as a
direct consequence of environmental degradation, drought and
biodiversity loss. Over 90 million children under five are dangerously
underweight. Undernourishment and severe food insecurity appear to
be increasing in almost all regions of Africa, as well as in South
America.

The SDGs aim to end all forms of hunger and malnutrition by 2030,
making sure all people–especially children–have sufficient and
nutritious food all year. This involves promoting sustainable
agricultural, supporting small-scale farmers and equal access to land,
technology and markets. It also requires international cooperation to
ensure investment in infrastructure and technology to improve
agricultural productivity.

agricultural productivity.

millon
The number of undernourished people reached 821 million in 2017.
percent
In 2017 Asia accounted for nearly two thirds, 63 percent, of the world’s
hungry.
percent
Nearly 151 million children under five, 22 percent, were still stunted in
2017.
in 8
More than 1 in 8 adults is obese.
1 in 3 women of reproductive age is anemic.
percent
26 percent of workers are employed in agriculture.

Goal targets
 By 2030, end all forms of malnutrition, including achieving, by
2025, the internationally agreed targets on stunting and wasting
in children under 5 years of age, and address the nutritional
needs of adolescent girls, pregnant and lactating women and
older persons
 By 2030, double the agricultural productivity and incomes of
small-scale food producers, in particular women, indigenous
peoples, family farmers, pastoralists and fishers, including
through secure and equal access to land, other productive
resources and inputs, knowledge, financial services, markets
and opportunities for value addition and non-farm employment
 By 2030, ensure sustainable food production systems and
implement resilient agricultural practices that increase
productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme
weather, drought, flooding and other disasters and that
progressively improve land and soil quality
 By 2020, maintain the genetic diversity of seeds, cultivated
plants and farmed and domesticated animals and their related
wild species, including through soundly managed and diversified
seed and plant banks at the national, regional and international
levels, and promote access to and fair and equitable sharing of
benefits arising from the utilization of genetic resources and
associated traditional knowledge, as internationally agreed
 Increase investment, including through enhanced international
cooperation, in rural infrastructure, agricultural research and
extension services, technology development and plant and
livestock gene banks in order to enhance agricultural productive
capacity in developing countries, in particular least developed
countries
 Correct and prevent trade restrictions and distortions in world
agricultural markets, including through the parallel elimination of
all forms of agricultural export subsidies and all export measures
with equivalent effect, in accordance with the mandate of the
Doha Development Round
 Adopt measures to ensure the proper functioning of food
commodity markets and their derivatives and facilitate timely
 access to market information, including on food reserves, in
order to help limit extreme food price volatility.
Goal 3

GOOD HEALTH AND WELL-BEING

We have made great progress against several leading causes of
death and disease. Life expectancy has increased dramatically; infant
and maternal mortality rates have declined, we’ve turned the tide on
HIV and malaria deaths have halved.

Good health is essential to sustainable development and the 2030

Agenda reflects the complexity and interconnectedness of the two. It
takes into account widening economic and social inequalities, rapid
urbanization, threats to the climate and the environment, the
continuing burden of HIV and other infectious diseases, and emerging
challenges such as noncommunicable diseases. Universal health
coverage will be integral to achieving SDG 3, ending poverty and
reducing inequalities. Emerging global health priorities not explicitly
included in the SDGs, including antimicrobial resistance, also demand
action.

But the world is off-track to achieve the health-related SDGs. Progress

has been uneven, both between and within countries. There’s a 31-
year gap between the countries with the shortest and longest life
expectancies. And while some countries have made impressive gains,
national averages hide that many are being left behind. Multisectoral,
rights-based and gender-sensitive approaches are essential to
address inequalities and to build good health for all.

million
At least 400 million people have no basic healthcare, and 40 percent
lack social protection.
billion
More than 1.6 billion people live in fragile settings where protracted
crises, combined with weak national capacity to deliver basic health
services, present a significant challenge to global health.
million
By the end of 2017, 21.7 million people living with HIV were receiving
antiretroviral therapy. Yet more than 15 million people are still waiting
for treatment.
seconds
Every 2 seconds someone aged 30 to 70 years dies prematurely from
noncommunicable diseases - cardiovascular disease, chronic
respiratory disease, diabetes or cancer.
million
7 million people die every year from exposure to fine particles in
polluted air.
in 3
More than one of every three women have experienced either physical
or sexual violence at some point in their life resulting in both short-
and long-term consequences for their physical, mental, and sexual
and reproductive health.

Goal targets
 By 2030, reduce the global maternal mortality ratio to less than
70 per 100,000 live births
 By 2030, end preventable deaths of newborns and children
under 5 years of age, with all countries aiming to reduce
neonatal mortality to at least as low as 12 per 1,000 live births
and under-5 mortality to at least as low as 25 per 1,000 live
births
 By 2030, end the epidemics of AIDS, tuberculosis, malaria and
neglected tropical diseases and combat hepatitis, water-borne
diseases and other communicable diseases
 By 2030, reduce by one third premature mortality from non-
communicable diseases through prevention and treatment and
promote mental health and well-being
 Strengthen the prevention and treatment of substance abuse,
including narcotic drug abuse and harmful use of alcohol
  By 2020, halve the number of global deaths and injuries from
road traffic accidents
 By 2030, ensure universal access to sexual and reproductive
health-care services, including for family planning, information
and education, and the integration of reproductive health into
national strategies and programmes
 Achieve universal health coverage, including financial risk
protection, access to quality essential health-care services and
access to safe, effective, quality and affordable essential
medicines and vaccines for all
 By 2030, substantially reduce the number of deaths and
illnesses from hazardous chemicals and air, water and soil
pollution and contamination
 Strengthen the implementation of the World Health Organization
Framework Convention on Tobacco Control in all countries, as
appropriate
 Support the research and development of vaccines and
medicines for the communicable and noncommunicable
diseases that primarily affect developing countries, provide
access to affordable essential medicines and vaccines, in
accordance with the Doha Declaration on the TRIPS Agreement
and Public Health, which affirms the right of developing countries
to use to the full the provisions in the Agreement on Trade
Related Aspects of Intellectual Property Rights regarding
flexibilities to protect public health, and, in particular, provide
access to medicines for all
 Substantially increase health financing and the recruitment,
development, training and retention of the health workforce in
developing countries, especially in least developed countries and
small island developing States
 Strengthen the capacity of all countries, in particular developing
countries, for early warning, risk reduction and management of
national and global health risks
Goal 4

QUALITY EDUCATION
Since 2000, there has been enormous progress in achieving the target
of universal primary education. The total enrollment rate in developing
regions reached 91 percent in 2015, and the worldwide number of
children out of school has dropped by almost half. There has also
been a dramatic increase in literacy rates, and many more girls are in
school than ever before. These are all remarkable successes.

Progress has also been tough in some developing regions due to high
levels of poverty, armed conflicts and other emergencies. In Western
Asia and North Africa, ongoing armed conflict has seen an increase in
the number of children out of school. This is a worrying trend. While
Sub-Saharan Africa made the greatest progress in primary school
enrollment among all developing regions – from 52 percent in 1990,
up to 78 percent in 2012 – large disparities still remain. Children from
the poorest households are up to four times more likely to be out of
school than those of the richest households. Disparities between rural
and urban areas also remain high.

Achieving inclusive and quality education for all reaffirms the belief
that education is one of the most powerful and proven vehicles for
sustainable development. This goal ensures that all girls and boys
complete free primary and secondary schooling by 2030. It also aims
to provide equal access to affordable vocational training, to eliminate
gender and wealth disparities, and achieve universal access to a
quality higher education.

percent
Enrollment in primary education in developing countries has reached
91 percent.
million
Still, 57 million primary-aged children remain out of school, more than
half of them in sub-Saharan Africa.
in 4
In developing countries, one in four girls is not in school.
percent
About half of all out-of-school children of primary school age live in
conflict-affected areas.million
103 million youth worldwide lack basic literacy skills, and more than 60
percent of them are women.
of 10
6 out of 10 children and adolescents are not achieving a minimum
level of proficiency in reading and math.

Goal targets
 By 2030, ensure that all girls and boys complete free, equitable
and quality primary and secondary education leading to relevant
and Goal-4 effective learning outcomes
 By 2030, ensure that all girls and boys have access to quality
early childhood development, care and preprimary education so
that they are ready for primary education
 By 2030, ensure equal access for all women and men to
affordable and quality technical, vocational and tertiary
education, including university
 By 2030, substantially increase the number of youth and adults
who have relevant skills, including technical and vocational skills,
for employment, decent jobs and entrepreneurship
 By 2030, eliminate gender disparities in education and ensure
equal access to all levels of education and vocational training for
the vulnerable, including persons with disabilities, indigenous
peoples and children in vulnerable situations
 By 2030, ensure that all youth and a substantial proportion of
adults, both men and women, achieve literacy and numeracy
 By 2030, ensure that all learners acquire the knowledge and
skills needed to promote sustainable development, including,
among others, through education for sustainable development
and sustainable lifestyles, human rights, gender equality,
promotion of a culture of peace and non-violence, global
citizenship and appreciation of cultural diversity and of culture’s
contribution to sustainable development
 Build and upgrade education facilities that are child, disability
and gender sensitive and provide safe, nonviolent, inclusive and
effective learning environments for all
 By 2020, substantially expand globally the number of
scholarships available to developing countries, in particular least
developed countries, small island developing States and African
countries, for enrolment in higher education, including vocational
training and information and communications technology,
technical, engineering and scientific programmes, in developed
countries and other developing countries
 By 2030, substantially increase the supply of qualified teachers,
including through international cooperation for teacher training in
developing countries, especially least developed countries and
small island developing states