world economy essay

Reimagining the global economy: Building back better in a post-COVID-19 world

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November 17, 2020

The COVID-19 global pandemic has produced a human and economic crisis unlike any in recent memory. The global economy is experiencing its deepest recession since World War II, disrupting economic activity, travel, supply chains, and more. Governments have responded with lockdown measures and stimulus plans, but the extent of these actions has been unequal across countries. Within countries, the most vulnerable populations have been disproportionately affected, both in regard to job loss and the spread of the virus.

The implications of the crisis going forward are vast. Notwithstanding the recent announcement of vaccines, much is unknown about how the pandemic will spread in the short term and beyond, as well as what will be its lasting effects. What is clear, however, is that the time is ripe for change and policy reform. The hope is that decisionmakers can rise to the challenge in the medium term to tackle the COVID-19 virus and related challenges that the pandemic has exacerbated—be it the climate crisis, rising inequality, job insecurity, or international cooperation.

In this collection of 12 essays, leading scholars affiliated with the Global Economy and Development program at Brookings present new ideas that are forward-looking, policy-focused, and that will guide policies and shape debates in a post-COVID-19 world.

Sustainable Development Goals

Authors: Homi Kharas , John W. McArthur

Some have questioned whether the pandemic has put attaining the already ambitious 17 Sustainable Development Goals (SDGs) out of reach, and whether they should be scaled back and deprioritized. In this essay, Homi Kharas and John McArthur argue that the SDGs remain as relevant as ever and that the goals can in fact provide a handrail for recovery policy.

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Leadership at the local level

Authors: Anthony F. Pipa , Max Bouchet

The pandemic has revealed the importance of good leadership at the local level. In this essay, Anthony F. Pipa and Max Bouchet explore the role that global cities can have in driving a sustainable recovery.

Multilateralism

Authors: Kemal Derviş

Given the global nature of the pandemic,  there have been  calls for greater international cooperation. In this essay, Kemal Derviş examines the state of  multilateralism  and presents lessons of caution as its future is reimagined.

Rebooting the climate agenda

Authors: Amar Bhattacharya

Shared recognition of the   climate agenda is central to global cooperation.  In this essay, Amar Bhattacharya explores  how   international action   can  pursue  a   recovery  that produces sustainable, inclusive, and resilient growth.  

The international monetary and financial system

Authors: Brahima Sangafowa Coulibaly , Eswar Prasad

The pandemic has exposed the weaknesses in the international financial system and the need to improve the financial safety net for emerging and developing countries. In this essay, Brahima Coulibaly and Eswar Prasad make the case for an international monetary and financial system that is fit for purpose to help countries better withstand shocks like a global pandemic.

The future of global supply chains

Authors: David Dollar

International trade has slowed, and existing trade challenges, including automation, new data flows, and the rise of protectionism, could accelerate post-COVID. In this essay, David Dollar discusses these challenges, the future of global supply chains, and the implications for international trade.

The global productivity slump

Authors: Alistair Dieppe , M. Ayhan Kose

COVID-19 could further accelerate the fall in global productivity, which has been slowing since the global financial crisis. Evidence from other recent pandemics such as SARS and Ebola show their negative impact on investment growth and productivity. In this essay, Alistair Dieppe and Ayhan Kose argue that policy approaches to boost productivity must be country-specific and well-targeted.

Dislocation of labor markets

Authors: Marcela Escobari , Eduardo Levy Yeyati

Throughout the world, the health and economic costs of the pandemic have been felt harder by less well-off populations. On the jobs front, the pandemic is affecting labor markets differently across and within advanced and developing countries as low-wage, high-contact jobs are disproportionally affected. In this essay, Marcela Escobari and Eduardo Levy Yeyati explore the future of work and policies for formalizing and broadening labor protections to bolster resiliency.

Tackling the inequality pandemic

Authors: Zia Qureshi

Technology, globalization, and weakening redistribution policies are leading to rising inequality in many countries. To tackle inequality, Zia Qureshi discusses policies to better harness technology for fostering inclusive economic growth.

The human costs of the pandemic

Authors: Carol Graham

Evidence suggests that the poor have been suffering higher emotional costs during the pandemic. In this essay, Carol Graham offers a look into well-being measurement and strategies to combat the effects of the lockdowns.

The complexity of managing COVID-19

Authors: Alaka M. Basu , Kaushik Basu , Jose Maria U. Tapia

From strict lockdowns to ensuring sufficient supplies of personal protective equipment to sending students home from school, governments around the world have enacted varying measures to respond to the virus. In this essay, Alaka M. Basu, Kaushik Basu, and Jose Maria U. Tapia examine how governments in emerging markets have managed the crisis so far, as they design governance strategies that both reduce the spread of infection and avoid prohibiting economic activity.

Global education

Authors: Emiliana Vegas , Rebecca Winthrop

COVID-19 disrupted education systems everywhere and has accelerated education inequality as seen through what service governments could provide: At one point during the pandemic, 1 in 4 low-income countries was able to provide remote education, while 9 in 10 high-income countries were able to. In this essay, Emiliana Vegas and Rebecca Winthrop present an aspirational vision for transforming education systems to better serve all children.

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Globalization and the World Economy Essay (Critical Writing)

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The current trends in the global economy development can be viewed as the foundation for considering the further political and financial changes on both the statewide and the global levels. Particularly, the fact that China, after years of being a manufacturing area, has developed enough to boost its economy and enter the global environment as a production leader deserves to be mentioned.

Therefore, it is desirable that global companies should consider expanding and redesigning their current supply chains so that room for partnerships with the identified companies could be created. Moreover, the competition issue deserves to be brought up as one of the scourges of the contemporary economic environment. Therefore, in the context of the present-day business environment, the emphasis must lie on developing a competitive advantage (CA) that would make an organization stand out as entrepreneurship among a range of similar companies.

While the focus on quality can be deemed an essential component of developing CA, it cannot be interpreted as a standalone tool that will propel a firm to the top of the economy. Instead, one must stress the significance of branding and create innovative approaches to addressing particular problems.

The significance of industrial upgrading, which has recently become especially important in the context of the global economy, can be viewed as the extension of the technological breakthrough that has been occurring over the past few decades. On a more basic level, the importance of networking in the online environment can be tracked even in everyday conversations. For instance, participation in sharing content via networks such as Facebook or Twitter can be deemed as a part and parcel of identifying, processing, and distributing information. Therefore, the application of the corresponding tools for managing both the internal and external processes of companies is crucial to their existence.

However, the expansion of the global network and the supply chains conflicts with the phenomenon of global income inequality. Although defining the subject matter is an admittedly complicated task, the fact that there is a significant gap in the average annual incomes of different social tiers is indisputable. At this point, the problem of low-income countries should be brought up. Specifically, the dilemma known as the development trap needs to be brought up.

Throwing a state several decades, if not centuries, back in its development, it blocks people from exploring their opportunities as it creates a unique socio-cultural environment, in which progress is barely possible. Therefore, it is imperative to make sure that awareness could be raised and that learning opportunities could be available to all those concerned. For these purposes, the issue of e-learning as the tool for distanced education must be mentioned.

Operating in the environment of the global economy is a challenging task. Moreover, some states cannot explore their options due to economic, political, legal, financial, sociocultural, environmental, and other restrictions. Thus, networking should be viewed as a tool for removing boundaries and helping people across the world join the global community to share knowledge, experience, and skills.

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Chapter 1. The economic impacts of the COVID-19 crisis

The COVID-19 pandemic sent shock waves through the world economy and triggered the largest global economic crisis in more than a century. The crisis led to a dramatic increase in inequality within and across countries. Preliminary evidence suggests that the recovery from the crisis will be as uneven as its initial economic impacts, with emerging economies and economically disadvantaged groups needing much more time to recover pandemic-induced losses of income and livelihoods . 1

In contrast to many earlier crises, the onset of the pandemic was met with a large, decisive economic policy response that was generally successful in mitigating its worst human costs in the short run. However, the emergency response also created new risks—such as dramatically increased levels of private and public debt in the world economy—that may threaten an equitable recovery from the crisis if they are not addressed decisively.

Worsening inequality within and across countries

The economic impacts of the pandemic were especially severe in emerging economies where income losses caused by the pandemic revealed and worsened some preexisting economic fragilities. As the pandemic unfolded in 2020, it became clear that many households and firms were ill-prepared to withstand an income shock of that scale and duration. Studies based on precrisis data suggest, for example, that more than 50 percent of households in emerging and advanced economies were not able to sustain basic consumption for more than three months in the event of income losses . 2 Similarly, the average business could cover fewer than 55 days of expenses with cash reserves . 3  Many households and firms in emerging economies were already burdened with unsustainable debt levels prior to the crisis and struggled to service this debt once the pandemic and associated public health measures led to a sharp decline in income and business revenue.

The crisis had a dramatic impact on global poverty and inequality. Global poverty increased for the first time in a generation, and disproportionate income losses among disadvantaged populations led to a dramatic rise in inequality within and across countries. According to survey data, in 2020 temporary unemployment was higher in 70 percent of all countries for workers who had completed only a primary education. 4   Income losses were also larger among youth, women, the self-employed, and casual workers with lower levels of formal education . 5   Women, in particular, were affected by income and employment losses because they were likelier to be employed in sectors more affected by lockdown and social distancing measures . 6

Similar patterns emerge among businesses. Smaller firms, informal businesses, and enterprises with limited access to formal credit were hit more severely by income losses stemming from the pandemic. Larger firms entered the crisis with the ability to cover expenses for up to 65 days, compared with 59 days for medium-size firms and 53 and 50 days for small and microenterprises, respectively. Moreover, micro-, small, and medium enterprises are overrepresented in the sectors most severely affected by the crisis, such as accommodation and food services, retail, and personal services.

The short-term government responses to the crisis

The short-term government responses to the pandemic were extraordinarily swift and encompassing. Governments embraced many policy tools that were either entirely unprecedented or had never been used on this scale in emerging economies. Examples are large direct income support measures, debt moratoria, and asset purchase programs by central banks. These programs varied widely in size and scope (figure 1.1), in part because many low-income countries were struggling to mobilize resources given limited access to credit markets and high precrisis levels of government debt. As a result, the size of the fiscal response to the crisis as a share of the gross domestic product (GDP) was almost uniformly large in high-income countries and uniformly small or nonexistent in low-income countries. In middle-income countries, the fiscal response varied substantially, reflecting marked differences in the ability and willingness of governments to spend on support programs.

Figure 1.1 Fiscal response to the COVID-19 crisis, selected countries, by income group

Similarly, the combination of policies chosen to confront the short-term impacts differed significantly across countries, depending on the availability of resources and the specific nature of risks the countries faced (figure 1.2). In addition to direct income support programs, governments and central banks made unprecedented use of policies intended to provide temporary debt relief, including debt moratoria for households and businesses. Although these programs mitigated the short-term liquidity problems faced by households and businesses, they also had the unintended consequence of obscuring the true financial condition of borrowers, thereby creating a new problem: lack of transparency about the true extent of credit risk in the economy.

Figure 1.2 Fiscal, monetary, and financial sector policy responses to the COVID-19 crisis, by country income group 

The large crisis response, while necessary and effective in mitigating the worst impacts of the crisis, led to a global increase in government debt that gave rise to renewed concerns about debt sustainability and added to the widening disparity between emerging and advanced economies. In 2020, 51 countries—including 44 emerging economies—experienced a downgrade in their government debt risk rating (that is, the assessment of a country’s creditworthiness) . 7

Emerging threats to an equitable recovery

Although households and businesses have been most directly affected by income losses stemming from the pandemic, the resulting financial risks have repercussions for the wider economy through mutually reinforcing channels that connect the financial health of households, firms, financial institutions, and governments (figure 1.3). Because of this interconnection, elevated financial risk in one sector can spill over and destabilize the economy as a whole. For example, if households and firms are under financial stress, the financial sector faces a higher risk of loan defaults and is less able to provide credit. Similarly, if the financial position of the public sector deteriorates (for example, as a result of higher government debt and lower tax revenue), the ability of the public sector to support the rest of the economy is weakened.

Figure 1.3 Conceptual framework: Interconnected balance sheet risks

This relationship is, however, not predetermined. Well-designed fiscal, monetary, and financial sector policies can counteract and reduce these intertwined risks and can help transform the links between sectors of the economy from a vicious doom loop into a virtuous cycle.

One example of policies that can make a critical difference are those targeting the links between the financial health of households, businesses, and the financial sector. In response to the first lockdowns and mobility restrictions, for example, many governments supported households and businesses using cash transfers and financial policy tools such as debt moratoria. These programs provided much-needed support to households and small businesses and helped avert a wave of insolvencies that could have threatened the stability of the financial sector.

Similarly, governments, central banks, and regulators used various policy tools to assist financial institutions and prevent risks from spilling over from the financial sector to other parts of the economy. Central banks lowered interest rates and eased liquidity conditions, making it easier for commercial banks and nonbank financial institutions such as microfinance lenders to refinance themselves, thereby allowing them to continue to supply credit to households and businesses.

The crisis response will also need to include policies that address the risks arising from high levels of government debt to ensure that governments preserve their ability to effectively support the recovery.   This is an important policy priority because high levels of government debt reduce the government’s ability to invest in social safety nets that can counteract the impact of the crisis on poverty and inequality and provide support to households and firms in the event of setbacks during the recovery. 

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The power of economics to explain and shape the world

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Nobel Prize-winning economist Esther Duflo sympathizes with students who have no interest in her field. She was such a student herself — until an undergraduate research post gave her the chance to learn first-hand that economists address many of the major issues facing human and planetary well-being. “Most people have a wrong view of what economics is. They just see economists on television discussing what’s going to happen to the stock market,” says Duflo, the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics. “But what people do in the field is very broad. Economists grapple with the real world and with the complexity that goes with it.”

That’s why this year Duflo has teamed up with Professor Abhijit Banerjee to offer 14.009 (Economics and Society’s Greatest Problems), a first-year discovery subject — a class type designed to give undergraduates a low-pressure, high-impact way to explore a field. In this case, they are exploring the range of issues that economists engage with every day: the economic dimensions of climate change, international trade, racism, justice, education, poverty, health care, social preferences, and economic growth are just a few of the topics the class covers. “We think it’s pretty important that the first exposure to economics is via issues,” Duflo says. “If you first get exposed to economics via models, these models necessarily have to be very simplified, and then students get the idea that economics is a simplistic view of the world that can’t explain much.” Arguably, Duflo and Banerjee have been disproving that view throughout their careers. In 2003, the pair founded MIT’s Abdul Latif Jameel Poverty Action Lab, a leading antipoverty research network that provides scientific evidence on what methods actually work to alleviate poverty — which enables governments and nongovernmental organizations to implement truly effective programs and social policies. And, in 2019 they won the Nobel Prize in economics (together with Michael Kremer of the University of Chicago) for their innovative work applying laboratory-style randomized, controlled trials to research a wide range of topics implicated in global poverty. “Super cool”

First-year Jean Billa, one of the students in 14.009, says, “Economics isn’t just about how money flows, but about how people react to certain events. That was an interesting discovery for me.”

It’s also precisely the lesson Banerjee and Duflo hoped students would take away from 14.009, a class that centers on weekly in-person discussions of the professors’ recorded lectures — many of which align with chapters in Banerjee and Duflo’s book “Good Economics for Hard Times” (Public Affairs, 2019). Classes typically start with a poll in which the roughly 100 enrolled students can register their views on that week’s topic. Then, students get to discuss the issue, says senior Dina Atia, teaching assistant for the class. Noting that she finds it “super cool” that Nobelists are teaching MIT’s first-year students, Atia points out that both Duflo and Banerjee have also made themselves available to chat with students after class. “They’re definitely extending themselves,” she says. “We want the students to get excited about economics so they want to know more,” says Banerjee, the Ford Foundation International Professor of Economics, “because this is a field that can help us address some of the biggest problems society faces.”   Using natural experiments to test theories

Early in the term, for example, the topic was migration. In the lecture, Duflo points out that migration policies are often impacted by the fear that unskilled migrants will overwhelm a region, taking jobs from residents and demanding social services. Yet, migrant flows in normal years represent just 3 percent of the world population. “There is no flood. There is no vast movement of migrants,” she says. Duflo then explains that economists were able to learn a lot about migration thanks to a “natural experiment,” the Mariel boat lift. This 1980 event brought roughly 125,000 unskilled Cubans to Florida over a matter a months, enabling economists to study the impacts of a sudden wave of migration. Duflo says a look at real wages before and after the migration showed no significant impacts. “It was interesting to see that most theories about immigrants were not justified,” Billa says. “That was a real-life situation, and the results showed that even a massive wave of immigration didn’t change work in the city [Miami].”

Question assumptions, find the facts in data Since this is a broad survey course, there is always more to unpack. The goal, faculty say, is simply to help students understand the power of economics to explain and shape the world. “We are going so fast from topic to topic, I don’t expect them to retain all the information,” Duflo says. Instead, students are expected to gain an appreciation for a way of thinking. “Economics is about questioning everything — questioning assumptions you don’t even know are assumptions and being sophisticated about looking at data to uncover the facts.” To add impact, Duflo says she and Banerjee tie lessons to current events and dive more deeply into a few economic studies. One class, for example, focused on the unequal burden the Covid-19 pandemic has placed on different demographic groups and referenced research by Harvard University professor Marcella Alsan, who won a MacArthur Fellowship this fall for her work studying the impact of racism on health disparities.

Duflo also revealed that at the beginning of the pandemic, she suspected that mistrust of the health-care system could prevent Black Americans from taking certain measures to protect themselves from the virus. What she discovered when she researched the topic, however, was that political considerations outweighed racial influences as a predictor of behavior. “The lesson for you is, it’s good to question your assumptions,” she told the class. “Students should ideally understand, by the end of class, why it’s important to ask questions and what they can teach us about the effectiveness of policy and economic theory,” Banerjee says. “We want people to discover the range of economics and to understand how economists look at problems.”

Story by MIT SHASS Communications Editorial and design director: Emily Hiestand Senior writer: Kathryn O'Neill

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Prof. Esther Duflo will present her research on poverty reduction and her “proposal for a global minimum tax on billionaires and increased corporate levies to G-20 finance chiefs,” reports Andrew Rosati for Bloomberg. “The plan calls for redistributing the revenues to low- and middle-income nations to compensate for lives lost due to a warming planet,” writes Rosati. “It also adds to growing calls to raise taxes on the world’s wealthiest to help its most needy.”

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How the World Became Rich by Mark Koyama and Jared Rubin and Slouching Towards Utopia, by J. Bradford DeLong: A Review Essay

This essay provides a review of two important recent books on economic growth: How the World Became Rich by Mark Koyama and Jared Rubin and Slouching Towards Utopia, by J. Bradford DeLong. Each book is noteworthy for its erudition and breadth. I explore strengths and weaknesses of these books and make some proposals on new ways to conceptualize and study long run socioeconomic development. My discussion emphasizes the importance of contingency in determining long run inequalities across countries as well the potential for ideas from complexity theory to augment standard growth modelling.

Financial support from the James M. and Cathleen D. Stone Foundation is appreciated. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

MARC RIS BibTeΧ

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Effects of Economic Globalization

Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

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Bangladesh Garment Workers

The garment industry in Bangladesh makes clothes that are then shipped out across the world. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day.

Photograph by Mushfiqul Alam

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people. The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America. Benefits of Globalization Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies. With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry , for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts. Globalization affects services, too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school. Consumers benefit also. In general, globalization decreases the cost of manufacturing . This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes. Downsides Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market. The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections. Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization. Into the Future Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.

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• Basic Statistic Global gross domestic product (GDP) 2029
• Basic Statistic Gross domestic product (GDP) of selected global regions 2023
• Premium Statistic GDP of the main industrialized and emerging countries 2023
• Basic Statistic Countries with the largest gross domestic product (GDP) 2024
• Basic Statistic Share of global regions in the gross domestic product 2023
• Basic Statistic Global gross domestic product (GDP) per capita 2023
• Premium Statistic Annual change in CPI 2015-2023, by country

Global gross domestic product (GDP) at current prices from 1985 to 2029 (in billion U.S. dollars)

Gross domestic product (GDP) of selected global regions 2023

Gross domestic product (GDP) of selected global regions at current prices in 2023 (in trillion U.S. dollars)

GDP of the main industrialized and emerging countries 2023

Gross domestic product (GDP) of the main industrialized and emerging countries in current prices in 2023 (in trillion U.S. dollars)

The 20 countries with the largest gross domestic product (GDP) in 2024 (in billion U.S. dollars)

Share of global regions in the gross domestic product 2023

Share of global regions in the gross domestic product (adjusted for purchasing power) in 2023

Global gross domestic product (GDP) per capita 2023

Global gross domestic product (GDP) per capita from 2013 to 2023, at current prices (in U.S. dollars)

Annual change in CPI 2015-2023, by country

Annual change in consumer price index (CPI) in selected countries worldwide from 2015 to 2023

Global economic indicators

• Basic Statistic Global Purchasing Manager Index (PMI) of the industrial sector August 2023
• Premium Statistic Purchasing Managers Index (PMI) in developed and emerging countries 2020-2024
• Premium Statistic Global consumer confidence index 2020-2024
• Premium Statistic Consumer confidence in developed and emerging countries 2023
• Premium Statistic Industrial production growth worldwide 2019-2024, by region
• Basic Statistic Average annual wages in major developed countries 2008-2022
• Premium Statistic Wage growth in developed countries 2019-2024
• Premium Statistic Global policy uncertainty index monthly 2019-2023

Global Purchasing Manager Index (PMI) of the industrial sector August 2023

Global Purchasing Manager Index (PMI) of the industrial sector from August 2021 to August 2023 (50 = no change)

Purchasing Managers Index (PMI) in developed and emerging countries 2020-2024

Manufacturing PMI (Industrial PMI) in key developed and emerging economies from January 2020 to May 2024 (50 = no change)

Global consumer confidence index 2020-2024

Global consumer confidence in developed and emerging countries from January 2020 to December 2024

Consumer confidence in developed and emerging countries 2023

Consumer confidence in developed and emerging countries in November 2023

Industrial production growth worldwide 2019-2024, by region

Global industrial production growth from January 2019 to April 2024, by region

Average annual wages in major developed countries 2008-2022

Average annual wages in major developed countries from 2008 to 2022 (in U.S. dollars)

Wage growth in developed countries 2019-2024

Wage growth in major developed countries from January 2020 to March 2024

Global policy uncertainty index monthly 2019-2023

Global economic policy uncertainty index from January 2019 to November 2023

Gross domestic product

• Basic Statistic Share of the main industrialized and emerging countries in the GDP 2023
• Basic Statistic Countries with the largest proportion of global gross domestic product (GDP) 2023
• Basic Statistic Gross domestic product (GDP) per capita in industrialized and emerging countries
• Basic Statistic Countries with the largest gross domestic product (GDP) per capita 2023
• Basic Statistic Countries with the lowest estimated GDP per capita 2023
• Basic Statistic Share of economic sectors in the global gross domestic product from 2013 to 2023
• Basic Statistic Share of economic sectors in the gross domestic product, by global regions 2023
• Basic Statistic Proportions of economic sectors in GDP in selected countries 2023

Share of the main industrialized and emerging countries in the GDP 2023

Share of the main industrialized and emerging countries in the gross domestic product (adjusted for purchasing power) in 2023

Countries with the largest proportion of global gross domestic product (GDP) 2023

The 20 countries with the largest proportion of the global gross domestic product (GDP) based on Purchasing Power Parity (PPP) in 2023

Gross domestic product (GDP) per capita in industrialized and emerging countries

Gross domestic product (GDP) per capita in the main industrialized and emerging countries in current prices in 2023 (in U.S. dollars)

The 20 countries with the largest gross domestic product (GDP) per capita in 2023 (in U.S. dollars)

Countries with the lowest estimated GDP per capita 2023

The 20 countries with the lowest estimated gross domestic product (GDP) per capita in 2023 (in U.S. dollars)

Share of economic sectors in the global gross domestic product from 2013 to 2023

Share of economic sectors in the global gross domestic product (GDP) from 2013 to 2023

Share of economic sectors in the gross domestic product, by global regions 2023

Share of economic sectors in the gross domestic product (GDP) of selected global regions in 2023

Proportions of economic sectors in GDP in selected countries 2023

Proportions of economic sectors in the gross domestic product (GDP) in selected countries in 2023

Economic growth

• Basic Statistic Growth of the global gross domestic product (GDP) 2029
• Premium Statistic Forecast on the GDP growth in selected world regions until 2029
• Premium Statistic Gross domestic product (GDP) growth forecast in selected countries until 2029
• Basic Statistic Countries with the highest growth of the gross domestic product (GDP) 2023
• Basic Statistic The 20 countries with the greatest decrease of the gross domestic product in 2023
• Premium Statistic GDP growth in the leading industrial and emerging countries 2nd quarter 2023

Growth of the global gross domestic product (GDP) 2029

Growth of the global gross domestic product (GDP) from 1980 to 2023, with forecasts until 2029 (compared to the previous year)

Forecast on the GDP growth in selected world regions until 2029

Growth of the real gross domestic product (GDP) in selected world regions from 2019 to 2029 (compared to the previous year)

Gross domestic product (GDP) growth forecast in selected countries until 2029

Growth of the gross domestic product (GDP) in selected countries from 2019 to 2029 (compared to the previous year)

Countries with the highest growth of the gross domestic product (GDP) 2023

The 20 countries with the highest growth of the gross domestic product (GDP) in 2023 (compared to the previous year)

The 20 countries with the greatest decrease of the gross domestic product in 2023

The 20 countries with the greatest decrease of the gross domestic product (GDP) in 2023 (compared to the previous year)

GDP growth in the leading industrial and emerging countries 2nd quarter 2023

Growth of the real gross domestic product (GDP) in the leading industrial and emerging countries from 2nd quarter 2021 to 2nd quarter 2023 (compared to the previous quarter)

Unemployment

• Basic Statistic Number of unemployed persons worldwide 1991-2024
• Basic Statistic Global unemployment rate 2004-2023
• Basic Statistic Unemployed persons in selected world regions 2024
• Basic Statistic Unemployment rate in selected world regions 2023
• Basic Statistic Youth unemployment rate in selected world regions 2023
• Premium Statistic Monthly unemployment rate in industrial and emerging countries August 2023
• Premium Statistic Breakdown of unemployment rates in G20 countries 2024

Number of unemployed persons worldwide 1991-2024

Number of unemployed persons worldwide from 1991 to 2024 (in millions)

Global unemployment rate 2004-2023

Global unemployment rate from 2004 to 2023 (as a share of the total labor force)

Unemployed persons in selected world regions 2024

Number of unemployed persons in selected world regions in 2021 and 2022, up to 2024 (in millions)

Unemployment rate in selected world regions 2023

Unemployment rate in selected world regions between 2087 and 2023

Youth unemployment rate in selected world regions 2023

Youth unemployment rate in selected world regions in 2000 to 2023

Monthly unemployment rate in industrial and emerging countries August 2023

Unemployment rate in the leading industrial and emerging countries from August 2022 to August 2023

Breakdown of unemployment rates in G20 countries 2024

Unemployment rate of G20 countries in 2024

Global trade

• Premium Statistic Monthly change in goods trade globally 2018-2024
• Basic Statistic Leading export countries worldwide 2023
• Premium Statistic Leading import countries worldwide 2023
• Premium Statistic The 20 countries with the highest trade surplus in 2022
• Premium Statistic The 20 countries with the highest trade balance deficit in 2022
• Basic Statistic Trade: export value worldwide 1950-2022
• Premium Statistic Global merchandise imports index 2019-2023, by region
• Premium Statistic Global merchandise exports index 2019-2023, by region

Monthly change in goods trade globally 2018-2024

Change in global goods trade volume from January 2018 to May 2024

Leading export countries worldwide in 2023 (in billion U.S. dollars)

Leading import countries worldwide 2023

Leading import countries worldwide in 2023 (in billion U.S. dollars)

The 20 countries with the highest trade surplus in 2022

The 20 countries with the highest trade surplus in 2022 (in billion U.S. dollars)

The 20 countries with the highest trade balance deficit in 2022

The 20 countries with the highest trade balance deficit in 2022 (in billion U.S. dollars)

Trade: export value worldwide 1950-2022

Trends in global export value of trade in goods from 1950 to 2022 (in billion U.S. dollars)

Global merchandise imports index 2019-2023, by region

Global merchandise imports index between January 2019 to November 2023, by region

Global merchandise exports index 2019-2023, by region

Global merchandise exports index from January 2019 to November 2023, by region

• Basic Statistic Global inflation rate from 2000 to 2029
• Basic Statistic Inflation rate in selected global regions in 2023
• Premium Statistic Monthly inflation rates in developed and emerging countries 2021-2024
• Basic Statistic Inflation rate of the main industrialized and emerging countries 2023
• Basic Statistic Countries with the highest inflation rate 2023
• Basic Statistic Countries with the lowest inflation rate 2023

Global inflation rate from 2000 to 2022, with forecasts until 2028 (percent change from previous year)

Inflation rate in selected global regions in 2023

Inflation rate in selected global regions in 2023 (compared to previous year)

Monthly inflation rates in developed and emerging countries 2021-2024

Monthly inflation rates in developed and emerging countries from January 2021 to June 2024 (compared to the same month of the previous year)

Inflation rate of the main industrialized and emerging countries 2023

Estimated inflation rate of the main industrialized and emerging countries in 2023 (compared to previous year)

Countries with the highest inflation rate 2023

The 20 countries with the highest inflation rate in 2023 (compared to the previous year)

Countries with the lowest inflation rate 2023

The 20 countries with the lowest inflation rate in 2023 (compared to the previous year)

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Optimizing Immigration for Economic Growth

C.D Howe Institute Commentary 662

24 Pages Posted: 21 Aug 2024

Matthew Doyle

University of Waterloo

Mikal Skuterud

Christopher worswick.

Carleton University

Date Written: July 11, 2024

• While Canada’s skilled immigration system has been the envy of the world for decades, the post-pandemic years have seen policy prioritize plugging “holes” in lower-skilled labour markets, which is consistent with popular notions that some types of labour are “essential” to production. Instead, Canada’s economic-class immigration system should return to its successful roots by prioritizing highly skilled newcomers based on expected earnings levels.
• The goal should be to maximize GDP per capita in the full population, including newcomers. Standard models of economic growth teach us much about the potential for heightened immigration to boost Canada’s GDP per capita. A key insight of the theory is that an economic immigration program that is designed to simply expand the labour force without raising the average human capital, or skill level, of the population is unlikely to increase GDP per capita in the long run.
• In addition, physical capital accumulation and productivity growth are critical variables mediating the impact of immigration on per capita income. However, weak capital investments and productivity growth suggest that Canada is not well-positioned to leverage heightened immigration to raise either the level or the growth rate of per capita GDP. We argue that these data caution against large-scale increases in economic immigration rates in the near term due to absorptive capacity issues.
• The preferred approach is to gradually increase immigration rates by starting with a high threshold level for expected immigrant earnings and gradually lowering it towards the overall population average. This would prioritize the applicants with the highest human capital levels and expected earnings, whose contributions to the Canadian economy are likely to have the largest positive impact.

Keywords: Demographics and Immigration, Immigration Policy and Outcomes

Suggested Citation: Suggested Citation

Matthew Doyle (Contact Author)

University of waterloo ( email ).

Waterloo, Ontario N2L 3G1 Canada

Carleton University ( email )

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