World Economy - 2004

Economy - overview:
Global output rose by 3.7% in 2003, led by China (9.1%), India (7.6%), and Russia (7.3%). The other 14 successor nations of the USSR and the other old Warsaw Pact nations again experienced widely divergent growth rates; the three Baltic nations continued as strong performers, in the 5%-7% range of growth. Growth results posted by the major industrial countries varied from a loss by Germany (-0.1%) to a strong gain by the United States (3.1%). The developing nations also varied in their growth results, with many countries facing population increases that erode gains in output. Externally, the nation-state, as a bedrock economic-political institution, is steadily losing control over international flows of people, goods, funds, and technology. Internally, the central government often finds its control over resources slipping as separatist regional movements - typically based on ethnicity - gain momentum, e.g., in many of the successor states of the former Soviet Union, in the former Yugoslavia, in India, in Iraq, in Indonesia, and in Canada. Externally, the central government is losing decision-making powers to international bodies. In Western Europe, governments face the difficult political problem of channeling resources away from welfare programs in order to increase investment and strengthen incentives to seek employment. The addition of 80 million people each year to an already overcrowded globe is exacerbating the problems of pollution, desertification, underemployment, epidemics, and famine. Because of their own internal problems and priorities, the industrialized countries devote insufficient resources to deal effectively with the poorer areas of the world, which, at least from the economic point of view, are becoming further marginalized. The introduction of the euro as the common currency of much of Western Europe in January 1999, while paving the way for an integrated economic powerhouse, poses economic risks because of varying levels of income and cultural and political differences among the participating nations. The terrorist attacks on the US on 11 September 2001 accentuate a further growing risk to global prosperity, illustrated, for example, by the reallocation of resources away from investment to anti-terrorist programs. The opening of war in March 2003 between a US-led coalition and Iraq added new uncertainties to global economic prospects. After the coalition victory, the complex political difficulties and the high economic cost of establishing domestic order in Iraq became major global problems that continue into 2004.

GDP:
GWP (gross world product) - purchasing power parity - $51.41 trillion (2003 est.)

GDP - real growth rate:
3.7% (2003 est.)

GDP - per capita:
purchasing power parity - $8,200 (2003 est.)

GDP - composition by sector:
agriculture: 4%
industry: 32%
services: 64% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
developed countries 1% to 4% typically; developing countries 5% to 60% typically; national inflation rates vary widely in individual cases, from declining prices in Japan to hyperinflation in several Third World countries (2003 est.)

Labor force:
NA

Labor force - by occupation:
agriculture NA%, industry NA%, services NA%

Unemployment rate:
30% combined unemployment and underemployment in many non-industrialized countries; developed countries typically 4%-12% unemployment

Industries:
dominated by the onrush of technology, especially in computers, robotics, telecommunications, and medicines and medical equipment; most of these advances take place in OECD nations; only a small portion of non-OECD countries have succeeded in rapidly adjusting to these technological forces; the accelerated development of new industrial (and agricultural) technology is complicating already grim environmental problems

Industrial production growth rate:
3% (2002 est.)

Electricity - production:
14.85 trillion kWh (2001 est.)

Electricity - production by source:
fossil fuel: NA%
hydro: NA%
other: NA% (2001)
nuclear: NA%

Electricity - consumption:
13.93 trillion kWh (2001 est.)

Oil - production:
75.34 million bbl/day (2001 est.)

Oil - consumption:
75.81 million bbl/day (2001 est.)

Oil - proved reserves:
1.025 trillion bbl (1 January 2002)

Natural gas - production:
2.578 trillion cu m (2001 est.)

Natural gas - consumption:
2.555 trillion cu m (2001 est.)

Natural gas - exports:
712 billion cu m (2001 est.)

Natural gas - imports:
697.5 billion cu m (2001 est.)

Natural gas - proved reserves:
161.2 trillion cu m (1 January 2002)

Exports:
$7.24 trillion f.o.b. (2003 est.)

Exports - commodities:
the whole range of industrial and agricultural goods and services

Exports - partners:
US 17.6%, Germany 7.6%, UK 5.4%, France 5.1%, Japan 4.8%, China 4.2% (2002)

Imports:
$7.24 trillion f.o.b. (2003 est.)

Imports - commodities:
the whole range of industrial and agricultural goods and services

Imports - partners:
US 11.3%, Germany 9.1%, China 7.3%, Japan 6.9%, France 4.6%, UK 4% (2002)

Debt - external:
$2 trillion for less developed countries (2002 est.)