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Over 2,000 Years of Economic History in One Chart
All major powers compared by GDP from the year 1 AD
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Long before the invention of modern day maps or gunpowder, the planet\u2019s major powers were already duking it out for economic and geopolitical supremacy.
Today\u2019s chart tells that story in the simplest terms possible. By showing the changing share of the global economy for each country from 1 AD until now, it compares economic productivity over a mind-boggling time period.
Originally published in a research letter by Michael Cembalest of JP Morgan, we\u2019ve updated it based on the most recent data and projections from the IMF. If you like, you can still find the original chart (which goes to 2008) at The Atlantic. It\u2019s also worth noting that the original source for all the data up until 2008 is from the late Angus Maddison, a famous economic historian that published estimates on population, GDP, and other figures going back to Roman times.
A Major Caveat
If you looked at the chart in any depth, you probably noticed a big problem with it. The time periods between data points aren\u2019t equal \u2013 in fact, they are not close at all.
The first gap on the x-axis is 1,000 years and the second is 500 years. Then, as we get closer to modernity, the chart uses mostly 10 year intervals. Changing the scale like this is a big data visualization \u201cno no\u201d, as rightly pointed out in a blog post by The Economist.
While we completely agree, we have a made an exception in this case. Why? Because getting good economic data from the early 20th century is already difficult enough \u2013 and so trying to find data in regular intervals before then seems like a fool\u2019s errand. Likewise, a stacked bar chart with different years also doesn\u2019t really do this story justice.
We encountered similar historical data issues in our Richest People of Human History graphic, and at the end of the day decided it was primarily for fun. Like today\u2019s chart, it has its share of imperfections \u2013 but ultimately, it provides a great amount of context and serves as a conversation starter.
Our Interpretation
Caveats aside, there are many stories that materialize from this simple chart. They include the colossal impact of the Industrial Revolution on the West, as well as the momentum behind the re-emergence of Asia.
But there\u2019s one other story that ties it all together: the exponential rate of human economic growth that occurred over the last century.
For thousands of years, economic progress was largely linear and linked to population growth. Without machines or technological innovations, one person could only produce so much with their time and resources.
More recently, innovations in technology and energy allowed the \u201chockey stick\u201d effect to come into play.
It happened in Western Europe and North America first, and now it\u2019s happening in other parts of the world. As this technological playing field evens, economies like China and India \u2013 traditionally some of the largest economies throughout history \u2013 are now making their big comeback.
Editor\u2019s note: We have adjusted the main graphic as of Sep 10, 2017 to change the description of the chart. It now says \u201cShare of GDP (World Powers)\u201d instead of the previous \u201cShare of world GDP\u201d, which was technically an inaccurate description.
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