Zhi Yuan Chor’s Post

"What if I told you that the world's largest economies are shifting—and the effects are closer to home than you might think?" I was reading this article yesterday, and it got me thinking that global GDP numbers are more than rankings. They reflect how the world is changing—and how people are driving that change. 💬Here’s what caught my attention: 🇨🇳China vs. 🇺🇸U.S. → Innovation vs. Manufacturing. China leads with a $33.1 trillion GDP (PPP), but the U.S. ($29.2T) still holds the edge in tech, finance, and entrepreneurship. While China bets big on AI, EVs, and green energy, the U.S. stays ahead through disruptive innovation. Who wins? The next decade will decide. 🇮🇳India → Startups as a Growth Engine. India’s rise to #3 in global GDP (PPP) is fueled by its growing startup ecosystem. Accelerators are playing a key role here—programs like The Circle FC and others are nurturing startups across tech, logistics, and fintech. I’ve been part of this journey with The Circle Work for few months and it’s incredible to see how these platforms are helping build the economy from the ground up. 🇨🇦Canada → Small but Mighty. Canada’s $2.6 trillion economy may seem modest, but its impact is outsized. Cities like Toronto and Vancouver are magnets for AI, biotech, and fintech innovation, and programs like DMZ, OneEleven, Toronto Business Development Centre & many more are driving the change. Sometimes, in economies where growth feels slow, it’s the people who make the real difference. I’ve seen it firsthand through one of my networks— Michael Liu, for example, is boosting Canada’s startup ecosystem by collaborating with industry trailblazers. That human drive is what sparks economic momentum. 🌐The BRICS Effect → Shifting the Balance. With China, India, Brazil, Russia, and South Africa leading the charge, BRICS economies now collectively outsize the G7 (PPP). By trading in their own currencies and driving demand for commodities and tech, they’re creating a multipolar economic world. So what does this mean for us? These trends show opportunities everywhere—for careers, startups, and innovation. Emerging markets aren’t just catching up anymore—they’re leading. Established economies are evolving to stay ahead. The question is: Are we ready to adapt and make a difference ourselves? Where do you see the global economy heading? Let’s talk below. 🌍 Source: Visual Capitalist

💡 So … small countries have small economies and big countries have bigger bigger economies ? The relationship between a country's size and its economic might isn't as straightforward as it might seem. While there's a general trend of larger countries boasting bigger economies, numerous exceptions highlight the influence of other crucial factors. Sure, a small landmass often translates to a smaller population, potentially limiting the pool of workers, consumers, and the overall size of the domestic market. However, this doesn't necessarily spell economic doom. Take countries like Luxembourg or Singapore. Despite their tiny footprints, they've carved out niches in specific sectors like finance or tourism, propelling them to the top ranks in terms of GDP per capita, a measure of individual wealth. This kind of success can also stem from possessing a highly sought-after natural resource, giving them significant leverage in the global market. On the other hand, vast swathes of land don't automatically translate to economic prosperity. Many African nations, despite their impressive size, grapple with relatively small economies. This can be attributed to various challenges like political instability, inadequate infrastructure, or dependence on subsistence farming, hindering economic diversification and growth. So, when analyzing economic strength, a country's size is just one piece of the puzzle. Factors like the presence of valuable natural resources, a skilled and educated workforce, robust infrastructure networks, and a stable political environment with strong institutions all play a critical role. A well-educated population fosters innovation and attracts investment, while good infrastructure facilitates the movement of goods, services, and people. Stable political institutions and strong property rights give businesses the confidence to invest and grow, further propelling the economy forward. while there's a tendency for larger countries to have larger economies due to their population size, it's far from the only determinant. Resource wealth, human capital, infrastructure, and a supportive political framework all significantly influence a nation's economic trajectory. Small countries can carve out their own path to success, proving that size isn't everything when it comes to economic muscle.

In the wake of recent geopolitical developments, particularly the U.S. election results, the global economic landscape is undergoing a significant transformation The ongoing reordering of global supply chains represents a profound shift in the international division of labor, a concept central to classical economic theory. This reconfiguration is reminiscent of the "flying geese paradigm" of economic development, where industries move from more advanced economies to emerging ones. The principle of comparative advantage, as postulated by David Ricardo, is being reevaluated in real-time as companies seek to balance efficiency with resilience. This shift challenges the long-held belief in the supremacy of just-in-time manufacturing, pushing firms towards a more robust, albeit potentially less efficient, just-in-case model. The resulting changes in production patterns could lead to a new equilibrium in the global goods market, affecting prices and trade flows worldwide. The predicted move towards a more integrated global workplace aligns with the factor price equalization theorem from the Heckscher-Ohlin model of international trade. As barriers to labor mobility decrease for highly skilled workers, we may witness a convergence of wages for similar skills across different countries. This trend is likely to be particularly pronounced in sectors driven by technology and innovation. The emphasis on "economically justified mobility" reflects a nuanced application of human capital theory. Countries and companies are increasingly viewing skilled labor as a critical factor of production, investing in its development and acquisition much like physical capital. This shift could lead to a more efficient allocation of human resources globally, potentially increasing overall productivity as predicted by endogenous growth theory. The inexorable march towards a greener economy, regardless of political headwinds, exemplifies Schumpeter's concept of creative destruction. India's economic initiatives, including the establishment of industrial zones and increased infrastructure spending, can be viewed through the lens of growth pole theory. By creating these concentrated areas of economic activity, India aims to generate spillover effects that can drive broader economic development. This strategy aligns with the concept of agglomeration economies, where the clustering of industries leads to increased productivity and innovation. For multinational corporations, these trends necessitate a reevaluation of global strategies. The traditional focus on cost minimization must now be balanced against the need for supply chain resilience and adherence to sustainability goals. This may lead to a new form of multinational enterprise, one that is more deeply embedded in multiple regional ecosystems rather than relying on a single global production network.

As we navigate an increasingly interconnected global market, entering the US market is not just a strategic move—it's a smart one. The diverse consumer base, innovative environment, and robust infrastructure make the US an ideal destination for growth. #USEconomy #BusinessExpansion #GlobalGrowth #Opportunities

🌍 **The US Economy: A Land of Opportunities!** 🇺🇸 With a staggering GDP of $28 trillion, the United States stands as the largest economy in the world, surpassing China by nearly $10 trillion. This economic landscape presents a wealth of opportunities for businesses looking to expand and thrive. As we navigate an increasingly interconnected global market, entering the US market is not just a strategic move—it's a smart one. The diverse consumer base, innovative environment, and robust infrastructure make the US an ideal destination for growth. For businesses considering expansion, the potential for tapping into one of the most dynamic markets is immense. From tech startups to established enterprises, the possibilities for innovation and collaboration are endless. Let's embrace this opportunity and drive our businesses toward success in the thriving US economy! 🚀 #USEconomy #BusinessExpansion #GlobalGrowth #Opportunities https://lnkd.in/eMGrtmyF

𝗜𝗻𝗱𝗶𝗮’𝘀 𝗥𝗶𝘀𝗶𝗻𝗴 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗣𝗼𝘄𝗲𝗿 — 𝗔 𝗟𝗼𝗼𝗸 𝗮𝘁 𝘁𝗵𝗲 𝗪𝗼𝗿𝗹𝗱 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 𝗶𝗻 𝟮𝟬𝟮𝟱 As we approach 2025, the global economy is projected to reach $115 trillion, as shown by the latest data from the International Monetary Fund (IMF). The economic landscape is rapidly evolving, with powerhouse nations like the USA, China, and India leading the charge. 𝗜𝗻𝗱𝗶𝗮: 𝗔 $𝟰.𝟯 𝗧𝗿𝗶𝗹𝗹𝗶𝗼𝗻 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗙𝗼𝗿𝗰𝗲 India’s economy is projected to reach $4.3 trillion by 2025, solidifying its position as one of the fastest-growing economies in the world. With this figure, India is on par with Japan ($4.4T) and far ahead of other emerging markets like Indonesia ($1.5T) and Brazil ($2.3T). 𝗪𝗵𝗮𝘁’𝘀 𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗜𝗻𝗱𝗶𝗮’𝘀 𝗚𝗿𝗼𝘄𝘁𝗵? 1. Digital Transformation: India’s embrace of digital infrastructure, including fintech platforms like UPI, has brought financial inclusion to millions. The digital economy is expected to grow exponentially in the coming years. 2. Demographic Dividend: With a young and dynamic workforce, India benefits from a labor force that is not only large but also highly adaptive to technology. 3. Government Reforms: Policy initiatives like Make in India, PLI (Production-Linked Incentives), and Digital India are attracting global investments and fostering a strong manufacturing base. 4. Service Sector Boom: From IT to healthcare, India’s service exports are a major driver of its economic success, creating opportunities both domestically and internationally. 5. Infrastructure Push: Investment in highways, smart cities, and renewable energy ensures long-term sustainable growth. 𝗧𝗵𝗲 𝗚𝗹𝗼𝗯𝗮𝗹 𝗣𝗶𝗰𝘁𝘂𝗿𝗲 The USA remains the largest economy with a projected $30.3 trillion GDP, while China follows closely at $19.5 trillion. Japan ($4.4T) and Germany ($4.9T) maintain strong footholds in the global economy. Emerging markets like Indonesia ($1.5T), Saudi Arabia ($1.1T), and Turkey ($1.5T) are also gaining momentum. 𝗜𝗻𝗱𝗶𝗮’𝘀 𝗥𝗼𝗹𝗲 𝗶𝗻 𝗮 $𝟭𝟭𝟱 𝗧𝗿𝗶𝗹𝗹𝗶𝗼𝗻 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 India’s $4.3T economy reflects its growing global influence. It is set to be a critical hub for technology, innovation, and trade. Multinational businesses and investors can no longer afford to overlook India’s opportunities. India’s trajectory toward becoming a $5T economy is not just a national aspiration—it’s a global shift. As India continues to innovate and reform, it will play a key role in shaping the future of the world economy. What are your thoughts on India’s rise? Are you seeing new opportunities for businesses and collaboration? Let’s discuss! #IndiaEconomy #GlobalEconomy #EconomicGrowth #IMF #EmergingMarkets #IndiaRising #DigitalTransformation #WorldEconomy2025 #EconomicTrends #BusinessGrowth #GlobalBusiness #MakeInIndia #Innovation #FutureOfIndia #LeadershipInGrowth International Monetary Fund

The U.S. has emerged as a global leader in productivity growth, driven by its robust innovation ecosystem, risk-tolerant investment culture, and dominance in technology sectors like AI. Since the 2008 financial crisis, U.S. labor productivity has grown by 30%, outpacing Europe, Japan, and the UK. This has fueled an 11.4% GDP expansion since 2019 and sustained faster growth than other advanced economies. In contrast, countries like Canada and the Eurozone struggle with stagnant productivity due to limited tech investment, regulatory hurdles, and fragmented markets. Efforts to boost innovation, such as the EU's Horizon Europe and Canada’s Strategic Innovation Fund, fall short of closing the gap. Europe’s social safety net further strains resources, while geopolitical uncertainties exacerbate challenges. Meanwhile, China is making strides in tech R&D but remains behind the U.S., which captures 83% of venture capital in G7 nations. Despite concerns about income inequality and potential impacts of policies under a possible Trump administration, experts believe the U.S. will maintain its leadership, supported by its “flywheel effect” of innovation driving sustained economic growth. #ARS #TheOutlook #Productivity #Dynamism https://hubs.li/Q0301Cmw0

Excellent piece in the FT on America's widening productivity gap vs other advanced economies (US productivity up 30% since 2008 - 3x the Eurozone/UK pace). While the article highlights tech/AI investment and Silicon Valley's ecosystem, I think we often overlook a crucial factor: resource misallocation. Starting with Hsieh & Klenow, we know misallocation of capital and labor can explain 30-50% of productivity differences between countries. The US advantage isn't just about creating new tech — it's about efficiently deploying resources across the economy. The FT piece touches on this obliquely when discussing VC funding (83% of G7 VC happens in US) and labor mobility. But the deeper story is how market structures, regulations, and institutions either enable or inhibit efficient resource allocation. This is where many advanced economies struggle most. https://lnkd.in/eJw6jk_R

Global Economic Models Globalization has revolutionized the way nations interact, breaking down barriers and creating a seamless flow of goods, services, and ideas across borders. This interconnectedness has paved the way for a diverse array of economic models to flourish, each shaped by its unique circumstances and objectives. **Export-oriented Economy:** Picture bustling factories churning out goods destined for far-flung markets—that’s the essence of an export-oriented economy. Countries like China have perfected this model, leveraging a large workforce and low production costs to flood international markets with their products. The benefits are clear: cheap goods and ample job opportunities. But there’s a catch. These economies are heavily reliant on foreign demand and vulnerable to currency fluctuations, meaning a hiccup in global markets can spell trouble. **Service-based Economy:** In a service-based economy, it’s all about the intangibles—finance, healthcare, education, and more. Think of the United States, where skilled professionals power industries that drive innovation and growth. With robust infrastructure supporting these sectors, the benefits are undeniable. However, services can be harder to measure and sell internationally, and when economic storms hit, service industries can feel the brunt of the impact. **Manufacturing-based Economy:** For countries like Japan and Germany, manufacturing is king. Innovation and efficiency are the name of the game, with cutting-edge techniques fueling industries like automobiles and machinery. The upside? Job creation and technological prowess. But there’s a downside too. Heavy manufacturing can take a toll on the environment, and as automation advances, the human workforce may find itself increasingly sidelined. **Resource-rich Economy:** Imagine a land teeming with natural riches—oil, gas, minerals—ready to be tapped and traded. That’s the reality for many Middle Eastern countries and others blessed with abundant resources. The allure of high export revenue is undeniable, but it comes with strings attached. These economies are at the mercy of commodity prices, and over-reliance on finite resources poses long-term risks. **Developing Economy:** In the world of developing economies, change is the only constant. Countries like India are experiencing rapid growth and diversification, fueled by a burgeoning workforce and untapped markets. The potential for growth is vast, but so are the challenges. Despite progress, many people still struggle financially, and limited infrastructure can hamper development efforts.