The measure that most people use to judge a country’s economic health is real GDP, which tells us how much a country is producing in terms of value added and private consumption. However, this only gives a snapshot of one aspect of the economy—there are other measures that can give more detailed pictures of the health of the economy, such as the Human Development Index.
Nevertheless, GDP is still the most important measure of national wealth and is followed closely by economists, investors, and policymakers. The release of new GDP numbers is generally well anticipated, and can move markets if there are indications that the economy is growing or slowing down.
Growth in the world’s leading economies is expected to remain moderate in 2023, as lower energy prices and a waning of trade tensions support activity in advanced economies. In contrast, growth in the Middle East and North Africa is projected to pick up, reflecting an assumed stabilization of armed conflicts and higher demand from oil exporters.
The relative position of individual countries within the global economy has profound implications for domestic production, welfare, and their capacity to exert influence in world markets. Disentangling the mechanisms that determine this current geography of world production is critical.