GDP & Money Supply for ECONOMICS:USGDP by Options360

The trajectory of global GDP & Money Supply keeps going up. The World’s GDP was 103.86 trillion in 2022 and is forecasted for 112.6 trillion in 2023. As of Nov. 28, 2022, the total global value of the M2 money supply is $82.6 trillion.

Gross domestic product (GDP), is an estimate of the total value of goods and services produced in a country during a specified period, it is currently calculated yearly to understand the growth metrics of the country. The calculation is based on nominal GDP, also called GDP at current prices or in value. Countries by GDP is the single most indicator to capture economic activity of all the countries.

The largest economies and top 10 countries by GDP in the world are United States, China, Japan, Germany, India, United Kingdom, France, Canada, Russia & Brazil. The United States economy is the largest in the world, measured by nominal GDP, followed by China, the world’s second largest with annual growth that consistently outpaces the United States. Below is the latest top 20 list of Countries by GDP, ranked as per the economic activity of each country in 2023.

Rank 2022 2023 2024

1 USA 25,035.164 26,185.210 27,057.202

2 China 18,321.197 19,243.974 20,699.148

3 Japan 4,300.621 4,365.976 4,568.729

4 Germany 4,031.149 4,120.242 4,337.385

5 India 3,468.566 3,820.573 4,170.220

6 UK 3,198.470 3,479.468 3,757.403

7 France 2,778.090 2,806.690 2,932.363

8 Canada 2,200.352 2,326.620 2,420.683

9 Russia 2,133.092 2,136.222 2,146.696

10 Brazil 1,894.708 2,059.443 2,200.916

11 Iran 1,973.738 2,044.152 2,135.731

12 Italy 1,996.934 1,991.008 2,059.410

13 South Korea 1,734.207 1,792.467 1,879.043

14 Australia 1,724.787 1,787.948 1,837.686

15 Mexico 1,424.533 1,476.407 1,527.077

16 Spain 1,389.927 1,421.012 1,508.902

17 Indonesia 1,289.429 1,388.683 1,506.988

18 Netherlands 990.583 1,019.762 1,076.955

19 Saudi Arabia 1,010.588 996.390 1,016.690

20 Turkey 853.487 941.551 1,037.858

(Source “populationu GDP List Updated Jan 2023 IMF gdp data in Oct 2022”)

How Money Supply Is Measured:

M0: Referred to as the monetary base, M0 includes all the money in circulation, including money banks hold in reserve. According to the Federal Reserve, there was about $2.3 trillion in circulation as of January 2023.

M1: It includes all the M0 money supply, adding the money held in travelers’ checks, demand deposits, other types of checkable deposits and negotiable orders of withdrawal. As of January 2023, the seasonally adjusted stock of M1 totaled $19.64 trillion.

M2: It includes all of the currency from the M1 money supply, and expands to include mutual funds, smaller time deposits, money market securities and other types of time deposits. M2 currencies are usually less liquid than M1, meaning you can’t convert M2 money into cash as easily. The total stock of M2 was $21.27 trillion in January.

M3: It includes all the elements of M2, plus institutional money market funds and large time deposits. As compared to M1 and M2, M3 assets have the lowest liquidity. The Fed no longer calculates M3.

How Much Money Is in the World?

The total amount of money in the world can be measured and expressed in many different ways, so it’s difficult to give a specific answer.

If you’re curious about the total value of notes and coins in circulation, the Bank for International Settlements estimated it to be 8,275,000,000,000, or $8.28 trillion U.S. dollars, across 20 major countries plus the euro area in 2021, its most recent estimate. Of course, there are nearly 200 countries in the world, so this is just a rough estimate of the most narrowly defined — and perhaps easiest to quantify — category of money.

The global M1 supply, which includes all the money in circulation plus travelers checks and demand deposits like checking and savings accounts, was $48.9 trillion as of Nov. 28, 2022, according to Visual Capitalist. That publication estimated the total value of the M2 supply to be $82.6 trillion.

Money is also present in the form of investments and derivatives. The total market capitalization of just the New York Stock Exchange and Nasdaq is over 48,000,000,000,000 USD as of December 2022, according to Statista. The sum of Market Capitalization of Shanghai Stock Exchange and Market Capitalization of Shenzhen Stock Exchange accounted for 12,360,284,655,000 USD in March 2023. The total market cap of cryptocurrency, as reported by CoinMarketCap, adds another $1.16 trillion to that figure.

(Source “gobankingrates, By Scott Jeffries March 16, 2023”)