Keeping things in perspective

The global economy is very large. The New Zealand economy is very small. This is one way to view our relative place in the economic world

Economy / analysis

The global economy is very large. The New Zealand economy is very small. This is one way to view our relative place in the economic world

4th Jan 25, 9:03am by admin

With apologies to Visual Capitalist, here is their graphic on how the world economy will shape up in 2025.

It is based on IMF data.

Australia is an also-ran economically. New Zealand is substantially less than that.

This is why we need to keep an eye on the major economies. Their influence on us is enormous.

Rank	Country	Region	2025 GDP
			US$	%
1	US	Northern America	$30.3 tln	26
2	China	Asia	$19.5 tln	17
3	Germany	Europe	$4.9 tln	4.4
4	Japan	Asia	$4.4 tln	3.8
5	India	Asia	$4.3 tln	3.7
6	UK	Europe	$3.7 tln	3.2
7	France	Europe	$3.3 tln	2.9
8	Italy	Europe	$2.5 tln	2.2
9	Canada	Northern America	$2.3 tln	2.0
10	Brazil	South America	$2.3 tln	2.0

13	Australia	Oceania	$1.7 tln	1.5
55	NZ	Oceania	$263 bln	0.2

	Global economy		$115 tln	100

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7 Comments

by kiwikidsnz | 4th Jan 25, 9:33am 1735936416

"Once upon a time there was a government that adopted a goal of catching up economically with Australia by 2025."

2025 and what might have been | croaking cassandra

by linklater01 | 4th Jan 25, 12:12pm 1735945959

kikwikidsnz,

Once upon a time there was a government that adopted a goal of catching up economically with Australia by 2025."

Yea Right and didn't the same John Key vow to turn NZ into the Switzerland of the S Pacific? What he really meant was that we should become a major player in the tax haven world. That was before the Panama Papers revealed the extent of our involvement in just that world. The Laundromat by Jake Bernstein is worth a read.

by ChrisOfNoFame | 4th Jan 25, 12:45pm 1735947932

"didn't the same John Key vow to turn NZ into the Switzerland of the S Pacific"

Maybe J.K. was looking at house prices in Switzerland? We're well on the way to such prices. A return to feudalism.

by J.C. | 4th Jan 25, 3:48pm 1735958892

What he really meant was that we should become a major player in the tax haven world.

The ruling elite could have set up the nation as a tax haven for the digital assets space. I'm relatively ignorant as to how our current situation is as to setting up an offshore company domiciled in Aotearoa that could have BTC, etc on its balance sheet. It possibly can be done but I haven't researched it properly. Instead of charging fiat fees, we could charge in BTC and add that to our national balance sheet.

If we were really concerned about money laundering, there could be appropriate KYC processes. Anyway, the Ponzi is partly a money laundering vehicle. Nobody gives a rats as long as the prices rise.

by ChrisOfNoFame | 4th Jan 25, 12:41pm 1735947717

If the US government suddenly stops deficit spending - and let's not forget it is Congress that holds the purse strings, not the President - then all hell will break loose. (And China could decide to inflict more pain on the US by pulling back on their 'stimulus' as money looks for a more stable home.)

And we all thought 2024 was bad ... ;-)

by CN - new | 4th Jan 25, 10:38pm 1735983512

For those who can't see:

1) China estimated loss in housing wealth: 100% of GDP - US$18 trillion

2) NZ estimated loss in housing wealth from peak to trough: 90% of GDP

by Let me be Frank | 5th Jan 25, 8:56am 1736020611

Is size the determining factor however? An economy can be small, but balanced. Perhaps the real solution is a reversion to the control of capital flows?