Question

Write about the changes in GWP in the last ten years and the reasons behind it.

Answer 1

                                    The Gross World Product [GWP] represents the combined Gross National income of all the countries in the world. It can be also considered as the sum of global GDP as the import and export would balance considering the whole world. According to the statistics of the World Bank, the nominal Gross World Product in 2013 was approximately $76 trillion and in 2017, it rose to about $80 trillion in nominal terms and $128 trillion in terms of Purchasing Power Parity [PPP]. In 2019, it is about $142 trillion in terms of PPP. This change indicates that the Gross World Product is growing steadily but only on a slower growth scale. It can be seen that in the last decade, various economic recessionary trends occurred across the globe in the initial stages with the widespread depression that occurred in 2008. The recessionary effects caused a reduction in the production potential of many nations and hence caused a reduction in the growth rate of GWP in the initial stages.

                                    With the recovery of various global economies from the depression of 2008, by about 2011-12 most of the trade were brought back to normalcy which caused a further improvement in the production rates of many global economies which can be seen from the statistics that caused a rise in the growth rate of gross production in the world during those times. The GWP in terms of PPP which was about $84 trillion in 2009 increased to $95 trillion by 2011. The growth rate was steady thereafter reaching $105 trillion by 2013 and $115 trillion by 2015. The rate further saw an increased era with the rates reaching $121 trillion by the next year to $128 trillion and $ 135 trillion in the subsequent years. As discussed earlier, the quantity reached about $142 trillion in 2019, but the rate has dipped in 2020 with the widespread effects of the Covid-19 pandemic which has caused a dip in the production rates across the globe and trade declines in the global network.

                                    Thus, the above statistics by the world bank reveals that the GWP has seen a steady growth in the last decade from 2009 and the growth rate has seen a dip in 2020 with the spread of the Covid-19 pandemic across the globe.