Saturday, April 5, 2014

5/4/2014: World Market Power Index: G7 and G20


A side-note to my earlier post on G7 and G20 memberships: here is a chart showing market power index for top global economies. Note two sets of countries: the G7 and G20 as ranked by the index of their power in global markets:



Three out of current G7 states should not be anywhere near G7. You might argue about Saudi Arabia's place in the world's 'power by exports' rankings, but China and Russia certainly are diversified enough and have a strong enough sway to be in G7.

On a side note: this should settle the argument who can win from a Russia-Ukraine trade war...

2 comments:

James Eze said...

I realize this is an old graphic, but the last comment doesn't make a whole lot of sense. Even back in April, this was never some Russia vs Ukraine "trade war", rather Russia vs "most of the developed world", hence the reason for the ruble's collapse.

Also, Russia is on that list for the same reason as Saudi Arabia -- energy exports. 2009 is a bit dated as well.

I suspect if we looked at a current chart, Russia wouldn't be in the top 10. They appear to be losing the so-called 'trade war'.

Dr. Constantin Gurdgiev said...

Yes, data is not exactly fresh. No, the positions have not probably changed that much. Russian exports collapsed in 2009 - see this http://trueeconomics.blogspot.ie/2014/10/24102014-weekly-russian-economy-update.html second chart. Since then, Russian exports were not performing too badly. As per sanctions... well, the impact on exports so far is small. Ukrainian conflict, however, does weigh heavily on exports, albeit compensated by imports fall off of similar size in bilateral trade with Ukraine. As per composition of Russian exports, sure - energy is a big component. But even in energy exports Russia is a bit more diversified than Saudi Arabia.

Final point - I referenced this graph to the post on actual G7 economy-size rankings, so it is clearly an 'illustrative' example, not the basis for rankings.