The Shifting Economic Centre Of Gravity Of The World Economy

Map created by Perrin RemontéThe map above shows how the world’s economic centre of gravity has shifter over the past 2,000+ years.

In the year 1 AD it was probably somewhere in around the borders between modern day Pakistan and Afghanistan.

1,000 years later and it barely shifted.

However, starting around 1500, with the rise of Europe as an economic superpower, it shifts west very quickly. And continues to do so with the rise of the United States.

But, by the late 20th century with the rise of Japan and China it begins to shift back East again.

And in case you’re wondering, the “world’s economic center of gravity” is a concept used to describe the average location of global economic activity on the Earth’s surface, calculated by weighting the geographic location of economic output (typically measured by GDP) of different countries.

Key Points:

1. Geographic Center Based on Economic Activity: The economic center of gravity is akin to the physical center of gravity but applies to economic power rather than mass. It represents a weighted average location where economic output is concentrated globally.
2. Calculation Method: To calculate this center, the economic output of each country (often its GDP) is multiplied by its geographical coordinates (latitude and longitude). These weighted values are then averaged to determine the “center” point.
3. Shifts Over Time: The location of this economic center has shifted over centuries (as seen above) due to changes in the global distribution of economic power. For much of history, it was centered around Asia (primarily due to the economic size of ancient civilizations like China and India). However, with the rise of Europe and later North America, the center shifted westward.
4. Recent Trends: In the 20th and 21st centuries, with the rapid economic growth of Asian countries, especially Japan, China and India, the economic center of gravity has been moving back eastward. The map in the image illustrates this shift over time, showing how global economic power has gradually moved from the West (Europe and North America) back towards the East.
5. Implications: Understanding the shift in the world’s economic center of gravity is crucial for grasping global economic dynamics, power shifts, and geopolitical strategies. It reflects changes in global trade, investment flows, technological advancements, and demographic changes.

And from the map itself:

THE GLOBAL ECONOMY
A SHIFTING CENTER OF GRAVITY

McKinsey Global Institute, 2012 – University of Groningen

“Calculation of the global center of gravity between Year 1 and 2010 by weighting the world’s economies.”

If we needed a map revealing the great Global Acceleration, here’s one that illustrates the societal upheavals since the Industrial Revolution and the ongoing unprecedented speed in shifting the global economic center of gravity.

Historically tied to demographic and technological power, the economic center has journeyed from the Old World to Europe and North America, and now rapidly shifts eastward with Asia’s ascent.

What do you think about this map? Leave your comments below: