Global superpower rankings reveal changing power dynamics

The global economic order is intertwined through trade and economic collaboration, but they show signs of wear.

With nationalism on the rise and cross-border trade flows stagnating, economies are increasingly protectionist. At the same time, demographic changes are boosting economic growth and productivity in India and Asia, which could shift the global balance of power.

This graph, via Dorothy Neufeld of Visual Capitalistranks world superpowers in 2024, based on Ray Dalio’s analysis Great Power Index 2024.

The power of major nations in 2024

Below, we show the total strength of the world’s superpowers based on a wide range of metrics, including economic output, military power and trade. In addition, we show power per capita, indicating how efficient a country is relative to its population:

The US remains the world’s most important superpower, supported by its dominance of global financial markets and technological innovation.

The influence of the US dollar is widespread. Today, it has involved in 85-90% of foreign exchange transactions, accounting for 59% of foreign exchange reservesand comprising about half of cross-border bank lending. Moreover, US market capitalization represents 61% of the global total.

As the world’s largest exporter, China follows, driven by its strength in trade and economic output. As an example, trade with Latin America has grown from $18 billion in 2022 to $450 billion in 2022. Strengthening its global position is China’s growing military power. Today, the country has the largest naval fleet in the world and a highly modernized defense sector.

India, ranked 7th, is projected to have the fastest real GDP growth over the next decade among major economies. Fueling its growth are vast infrastructure spending and a young demographic. However, on a per capita basis, India ranks last, likely due to lower average per capita income and an unequal distribution of wealth.

By contrast, Singapore has the highest per capita score, illustrating that the nation’s power is most evenly distributed among its population. The island nation is a global center for finance and trade, while foreign direct investment is a key driver of economic growth.

To learn more about this topic from an economic growth perspective, see this graph on projections of real GDP per country over the next decade.

By Zerohedge.com

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