August 01, 2024
According to the latest trade statistics from the World Bank’s World Development Indicators, the sum of exports and imports across countries amounted to 63% of global GDP in 2022, the most recent year available.
This metric, also known as the trade openness index, represents the ratio of total trade (exports plus imports) to global output. The higher this ratio, the greater the influence of international trade transactions on global economic activity.
The chart shows the trade openness trend since 1970. After a decade of ups and downs, with a noticeable dip in 2020, trade rebounded above pre-pandemic levels in 2022.
In fact, from a long-run perspective, the 63% observed in 2022 was historically unprecedented.
Economic historians estimate that in 1912, at the peak of the “first wave of globalization”, the trade openness index reached 30%. Global trade declined substantially during the First and Second World Wars, then increased again with the onset of the “second wave of globalization”, exceeding 50% of GDP at the beginning of the 21st century.
The fact that global trade openness was higher in 2022 than ever before may seem surprising, given that several countries that followed different trajectories received considerable attention in the media. For example, imports and exports peaked at 65% of GDP in China in 2006 but have since declined to 38% in 2022.
Read more about the first and second waves of globalization →
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Today
What does the British government spend its budget on? The chart shows spending broken down by category, scaled to £100. It combines both central and local government spending.
Social protection is the single largest item. Out of every £100 spent, £33 goes to it — more than health, at £19 per £100. The UK is typical in this regard — in every OECD country except the US, social protection is the biggest category.
Public services also account for a large share: £14 per £100. These include core government functions, foreign aid, and interest payments on government debt.
Education and economic affairs, which support the broader economy or specific industries such as fishing and manufacturing, are also prominent categories.
December 16
Since 2000, GDP per capita has doubled in all three Baltic states: Estonia, Latvia, and Lithuania (where it has nearly tripled).
Living conditions in these countries have improved more broadly. Poverty rates are lower, and life satisfaction is higher. Incomes have not just doubled in terms of GDP per capita; median incomes have also doubled.
December 13
This Data Insight is the third of a three-part series on China’s role in global trade, drawing on new writing we added this week to our Trade and Globalization topic page.
China is the top source of imports for many countries. But this tells us only how China compares with other trading partners, not how large these imports are relative to the size of each country’s economy. That is what this map shows.
The map plots the total value of merchandise imports from China as a share of each importing country’s GDP. The data shows that Chinese imports are relatively small when compared with the overall size of the importing economy.
Take the Netherlands as an example: China is the country’s leading source of imports. But compared with the size of the whole Dutch economy, this is a comparatively small amount — about 10% as a share of GDP. And as the map shows, the Netherlands is at the high end, largely because it imports a lot overall.
In many countries, imports from China account for much less than 10% of GDP. There are a few reasons for this. First, even if China is the leading partner, most countries still import from a wide range of places. And second, in most countries, the economic value produced domestically is larger than the total value of imported goods.
December 11
This Data Insight is the second of a three-part series on China’s role in global trade, drawing on new writing we added this week to our Trade and Globalization topic page.
China’s central role in merchandise trade is the result of a large change that has taken place in just a few decades. This change has been especially large in Africa and South America.
In 1990, most African countries imported mainly from Europe, and most South American imports came from North America. Today, Asia is the top source of imports for both regions, primarily due to the rapid growth of trade with China.
The chart here focuses on Ethiopia, a country that illustrates this shift. Home to around 130 million people, it is one of Africa’s largest countries and has experienced rapid economic growth in recent decades.
In the early 1990s, over 40% of Ethiopia’s imports came from Europe, while very little came from China. Since then, the roles of China and Europe have almost reversed: imports from China now account for one-third of Ethiopia’s total imported goods.
December 09
This Data Insight is the first of a three-part series on China’s role in global trade, drawing on new writing we added this week to our Trade and Globalization topic page.
Over the past two decades, China’s role in global trade has expanded substantially. It has become a central hub, particularly through growing relationships with many lower and middle-income countries.
The map here shows how China ranks as a source of imports into each country. A rank of 1 means that China is the largest source of merchandise goods (by value) that a country buys abroad.
In 2024, China was the top source of imported goods for around two-thirds of countries worldwide. This includes nearly all of Asia, much of Africa and Latin America, and parts of Europe.
In many countries, China has overtaken the United States as the largest origin of their imported goods. This shift has occurred relatively recently, mainly over the past two decades.
December 06
Despite the world’s immense progress against child mortality, in some of the poorest countries, one in ten children still dies. That’s a level last seen in the richest countries in the middle of the 20th century.
The chart shows the nine countries, all located in Africa, where this is the reality today. In Niger, more than 11 out of every 100 children die before the age of five. In the European Union, the child mortality rate is more than twenty times lower.
December 04
In 1961, around two chickens were slaughtered per person globally each year. As many countries grew richer — and richer countries tend to eat more meat — global demand for chicken increased.
Since then, the number of chickens slaughtered per person has quadrupled. On average, 9 chickens are killed each year for every person in the world. Chickens have also become much heavier, so the amount of meat eaten in kilograms has grown even faster.
Life is short and painful for many farmed animals. Global estimates suggest that most are raised in factory farms. In the United States, around 99% of livestock comes from them.
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