The world’s top 15 economies account for 75% of global GDP. These countries also have a lot of political and economic influence around the globe.

In real terms, China’s contribution to global GDP is growing rapidly, and has already overtaken that of the United States. However, its contribution to world value added is still below the United States’. This is because the Chinese economy focuses more on production and less on final consumption. The US, on the other hand, has a much more diversified economy, and as such, is better suited to the service sector.

Real GDP is defined as the market value of all final goods and services produced within a country, adjusted for price changes and quality improvements. It is often used as a measure of the size and strength of an economy, but it has some limitations. For example, it does not take into account the cost of natural resources or the depreciation of fabricated capital assets. Furthermore, it does not fully account for the introduction of new products that raise living standards, such as antibiotics or cell phones.

A large share of the GDP in many developed countries is derived from services, reflecting the high proportion of high-income households. In 2025, consumption is expected to remain the main driver of global GDP growth, as household savings rates ease and service inflation moderates. This is in contrast to the slowdown in investment, which will likely be weighed down by elevated geopolitical uncertainty and heightened trade barriers.