2023 Global Economic Performance Overview: Exclusive and Unsustainable
Mohamad Abou Hamia, Chief Economist and Researcher. August 4, 2024
In this overview, we present the 2023 real GDP, GDP growth rates, the contribution to real GDP, and the contribution to growth rates for the entire world economies and regions. The data reveals stark global economic disparities, with wealth and economic power heavily concentrated in a small group of nations, particularly the G20, which collectively accounts for 78% of global GDP. Notably, the U.S. and China alone contribute 42% of the world’s GDP, while 131 developing countries together contribute only 6.65%. This extreme economic exclusivity has profound implications for global development and inequality. While some regions, such as East Asia and North America, experienced robust growth, others, particularly Sub-Saharan Africa, the Caribbean, and the Pacific Islands, faced significant challenges. These findings underscore the urgent need for policies aimed at reducing economic disparities and fostering inclusive and sustainable global growth.
131 Developing Countries
Developing countries, representing a vast majority of the world’s population, collectively contributed a modest 6.65% to global GDP in 2023. With a combined GDP of approximately $6.17 trillion, these 131 nations achieved a growth rate of 3.91%, contributing 0.181 percentage points to global economic expansion. This stark contrast to the G7’s dominance, which accounts for 42.714% of global GDP, underscores the severe economic disparity on a global scale. While developing countries exhibited growth, their collective impact on the world economy remains significantly overshadowed by a small group of affluent nations, highlighting the challenges of economic inclusion and development.
The G20 Countries
The G20 economies continue to dominate the global economic landscape, exacerbating the issue of economic exclusivity. With a combined GDP of approximately $72.38 trillion, these twenty nations account for a staggering 77.98% of global GDP. While the group’s overall growth rate of 2.2% in 2023 contributed significantly to world growth, at 2.120 percentage points, the concentration of economic power within such a small group of nations is striking. The United States and China, as the top contributors, further emphasize this disparity. However, the G20 itself is not homogenous; countries like Argentina and South Africa, with relatively low contributions to global GDP, highlight the economic disparities even within this exclusive group.
East Asia
East Asia experienced a phenomenal economic resurgence in 2023, exacerbating the global economic divide. With a GDP of $23.94 trillion and a staggering growth rate of 16.54%, the region’s dominance is undeniable. This rapid expansion, particulary in Macao, fueled by service exports and China’s reopening, underscores the widening gap between economic powerhouses and the rest of the world. East Asia’s 25.79% share of global GDP and its contribution of 0.7013 percentage points to world growth further solidify its position as a global economic behemoth. This concentration of wealth and influence highlights the issue of economic exclusivity on a global scale.
North America
North America’s economic might continue to shape the global economy, contributing to the overall trend of economic exclusivity. With a GDP of $23.56 trillion and a 26.8% share of world GDP, the region remains a dominant force. While its 2.3% growth rate in 2023 was modest, its substantial contribution of 0.690 percentage points to global growth underscores the region’s outsized influence. This concentration of economic power within a few regions further exacerbates the global economic divide.
Europen Union or Economic Area
The European Economic Area (EEA) exhibited a stark contrast to the dynamic growth seen in other regions, reflecting the growing economic disparity worldwide. With a sluggish growth rate of 0.26% and a GDP of $16.61 trillion, the EEA’s contributions to global GDP and growth, while significant at 17.89% and 0.487%, respectively, pale in comparison to the performance of other economic powerhouses. The uneven performance within the region, with Germany, France, and Italy leading the pack while others lag behind, highlights the internal challenges faced by the EEA amidst a globally unequal economic landscape.
Non-European Union and Non-Economic Area
The European Non-Economic Area (EEA) member region showcased a more robust economic performance compared to its EEA counterparts, yet its impact on the global economy remains relatively limited. While the region expanded by a substantial 3.43%, contributing 6.83% to global GDP and 0.186% to global growth, it still represents a fraction of the economic power wielded by the leading global economies. The disparity in performance between the region’s top performers, such as the United Kingdom, Russian Federation, and Turkiye, and those at the bottom underscores the uneven distribution of economic benefits within the region and globally.
Latin America
Latin America’s economic growth in 2023, while robust at 4.08%, was insufficient to significantly alter the global economic balance. Despite contributing 0.122% to global growth and representing 4.5% of world GDP, the region’s economic influence remains overshadowed by the dominant players. The performance disparity between Brazil, Argentina, and Colombia on the one hand, and Nicaragua, Suriname, and Belize on the other, mirrors the broader global economic divide.
South Asia
South Asia’s economic growth of 2.83% in 2023, while commendable, highlights the region’s position in the periphery of the global economy. With a GDP of $4.0497 trillion and a contribution of 4.36% of the world’s GDP and 0.119 percentage points to the world’s growth, the region’s economic impact remains relatively modest. While India and Pakistan emerged as key contributors, the overall performance underscores the challenges faced by the region in closing the economic gap with global leaders.
Middle East and North Africa
The Middle East and North Africa (MENA) region’s economic performance in 2023 was characterized by moderate growth, contributing to the overall trend of economic concentration. With a GDP of approximately $3.62 trillion and contributions of 3.9% to global GDP and 0.106 percentage points to global growth, the region’s economic influence is limited compared to major economic powerhouses. The uneven performance across countries, with Saudi Arabia, Iran, and Egypt leading the way, highlights the internal challenges and external pressures faced by the region in a globally competitive environment.
Southeast Asia
Southeast Asia’s economic growth of 1.77% in 2023 was modest compared to the rapid expansion seen in other regions, reflecting the region’s position in the global economic hierarchy. With a GDP of $3.36 trillion and contributions of 3.62% of the world GDP and 0.0984 percentage points to world growth, the region’s economic impact remains relatively small. While countries like Indonesia, Thailand, and the Philippines demonstrated stronger performance, the overall picture underscores the region’s dependence on global economic trends and its efforts to catch up with economic leaders.
Sub-Saharan Africa
Sub-Saharan Africa’s economic growth of 3.6% in 2023, while commendable, was insufficient to significantly alter the region’s position at the bottom of the global economic ladder. With a combined GDP of approximately $1.98 trillion and contributions of 2.1% to the global economy and 0.058 percentage points to global growth, the region remains economically marginalized. The stark contrast between the performance of Nigeria, South Africa, and Ethiopia, and countries like Guinea-Bissau, Comoros, and Sao Tome and Principe highlights the deep-seated economic challenges faced by the region.
Oceania
Oceania’s economic performance in 2023, while steady, contributed to the overall trend of economic concentration. With a GDP of $1.85 trillion and a contribution of 0.054 percentage points to global growth, the region’s economic influence remains limited. While Australia and New Zealand are relatively prosperous, their combined impact on the global economy is overshadowed by the economic powerhouses.
Central Asia
Central Asia’s robust economic growth of 6.37% in 2023 is commendable, but the region’s overall economic size and influence remain relatively small. With a GDP of $445.7 billion and a contribution of 0.013 percentage points to global growth, the region’s impact on the global economy is limited. While Kazakhstan and Uzbekistan emerged as key drivers of growth, the region’s economic development is still in its early stages, and it faces significant challenges in closing the gap with global economic leaders.
The Caribbean
The Caribbean region’s moderate economic growth of 2.91% in 2023 reflects the region’s vulnerability to external shocks and its limited economic diversification. With a GDP of $175.16 billion and a minimal contribution of 0.005 percentage points to global growth, the region’s economic influence is negligible. While Puerto Rico, Trinidad and Tobago, and Jamaica demonstrated stronger performance, the overall economic outlook for the region is challenged by its small size and dependence on tourism and other external factors.
Pacific Islands
The Pacific Islands region’s economic growth of 3.29% in 2023, while positive, underscores the region’s marginal position in the global economy. With a GDP of $35.18 billion and a minuscule contribution of 0.001% to global growth, the region’s economic influence is virtually nonexistent. The uneven performance across countries highlights the region’s vulnerability to climate change and other external shocks, further exacerbating its economic challenges.