The global economic order is stitched together by trade and economic collaboration, but these show signs of fraying.
With nationalism on the rise and cross-border trade flows stagnating, economies are growing more protectionist. At the same time, demographic shifts are driving economic growth and productivity in India and Asia, which could shift the global power balance.
This graphic, via Visual Capitalist's Dorothy Neufeld, ranks world superpowers in 2024, based on analysis from Ray Dalio’s Great Powers Index 2024.
Below, we show the total strength of world superpowers, based on a wide range of metrics including economic output, military strength, and trade. Additionally, we show per capita strength, indicating a country’s efficiency relative to its population:
The U.S. remains the world’s foremost superpower, bolstered by its dominance in global financial markets and technological innovation.
The U.S. dollar’s influence is widespread. Today, it involved in 85-90% of foreign currency exchange trades, accounting for 59% of foreign exchange reserves, and comprising around half of cross-border bank loans. Moreover, U.S. stock market capitalization represents 61% of the global total.
As the world’s largest exporter, China follows next, driven by its strength in trade and economic output. As one example, trade with Latin America has surged from $18 billion in 2022 to $450 billion in 2022. Strengthening its global position further is China’s growing military might. Today, the country has the world’s largest naval fleet and a highly modernized defense sector.
India, ranking in 7th, is projected to see the fastest real GDP growth over the next decade across major economies. Powering its growth is vast infrastructure spending and a young demographic. Yet on a per capita basis, India falls last, likely due to lower average per capita incomes and an uneven distribution of wealth.
By contrast, Singapore has the highest score on a per capita basis, illustrating that the nation’s power is the most evenly distributed across its population. The island country is a global hub for finance and trade, while foreign direct investment is a key driver of economic growth.
To learn more about this topic from an economic growth perspective, check out this graphic on real GDP projections by country over the next decade.