The U.S., Canada, and Mexico generate 31.7%, almost 1/3, of the world’s total GDP.
Goldman Sachs Research has issued a report on global GDP (Global Domestic Product) based on currency values. I have listed the GDP for the top 10 below. Beneath that, I offer some insights.
United States – 27.8%
China – 19.5%
Eurozone – 14.7%
Japan – 4.5%
India – 3.7%
United Kingdom – 3.3%
Canada – 2.3%
Russia – 2.2%
Brazil – 2%
Australia and South Korea – 1.8%
We in North America worry so much about being overtaken by China that we miss the fact that the U.S., Canada, and Mexico (1.6%) generate 31.7%, almost 1/3, of the world’s GDP.
China may be in second, but it is a powerhouse. It generates 5% more than the entire Eurozone. It will be interesting to see if China can maintain its share as it continues to stifle its entrepreneurial class.
India, which looks to pick up manufacturing at China’s expense, has a GDP (3.7%) that is one-fifth the size of China’s. It is difficult to see India making a serious run on China as the world’s manufacturing hub any time soon.
Former British colonies are known to have thriving economies. The reason given is that they inherited British Common Law with its heavy private property protections. I added the GDP for all the former colonies, and it amounted to 38.3% of global GDP.
Here is how it breaks out: Hong Kong (0.4%), the United States (27.8%), India (3.7%), Canada (2.3%), Australia (1.8%), Israel (0.6%), New Zealand (0.3%), Singapore (0.5%), Nigeria (0.5%), and South Africa (0.4%) account for 38.3% of global GDP.