Monday, July 18, 2005

2005 World Growth Rates

Reporter in the field Rorschach sends in the following picture, which was compiled with data from the World Bank and OECD Economic Outlook:

The U.S. and European numbers are not surprising as they are consistent to what has been reported in the WSJ and other MSM sources. China, India and Japan are also frequently sited.

What I did find surprising was Africa and South America. The "North Africa and Mid East" area is most likely being propped by the rising price of oil. Sub-Saharan Africa doesn't look right to me based on all the hand-outs they are asking for, but when you start on such a low base I guess any growth look large. "South America" is probably being propped by Brazil, as well as oil prices, but is masking a few really poor performers in the area when grouped as a whole continent.

But one thing that really hits home is a piece of data only partly brought out in this chart: The U.S. - the world's largest economy - has growth that is about double the next largest economy, Japan, and three times the third largest economy, Germany (grouped in with Europe). And we are starting from a GDP that is over two and a half times larger than the next largest competitor.

I don't think the average person on the street realizes what an economic powerhouse the U.S. is., but part of that is probably because the nearest democrat is consistently telling them how rotten the economy is - when it isn't.

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