Understanding the GDP Scenario of Global Cities (2022 )

The above analysis is all about integrating multiple metrics to deliver insights into GDP distribution, population dynamics, and economic productivity.

Objectives :

• Compare GDP across metropolitan areas and countries.
• Identify top countries and cities by total GDP .
• Assess economic productivity and living standards.
• Compare economic metrics between regions and countries.

Data Preparation :

After loading the dataset in Power Bi Desktop through the Get Data option we identified that the column named Official est. GDP(billion US$) was in TEXT format ,so for the analysis purpose we changed the format to FIXED DECIMAL NUMBER . We checked the data set further for any anomalies ,but it was found ok ,so we loaded the dataset for detailed analysis .

Key Metrics :

• Total GDP By Country /Region.
• GDP Per Capita vs Population By City.
• Total GDP By Metropolitan Area /city .
• GDP vs Population By Country
• Population wise GDP in Country .
• GDP Per Capita By Metropolitan Area /City .

Lets dive into further analysis .

Analysis :

1. Total GDP By Country /Region :

The "Total GDP by Country/Region" metric visualizes the economic output of various countries/regions by summing up the GDP of metropolitan areas/cities within those countries.

Key Insights and Business Implications :

A). Identification Of Economic Powerhouses :

• United States: With a total GDP of $23,213 billion, the United States stands out as the leading economic powerhouse. This suggests a highly developed and diversified economy for that country .
• China: The second-largest economy with a total GDP of $10,983 billion. Indicates rapid industrialization and growth.
• Japan, Germany, France, and the United Kingdom: These countries also show significant GDP figures, highlighting their strong economic positions in the global market.
• India : India has a total GDP of $1,405 billion, showcasing its status as an emerging economic power. The country's GDP reflects a significant growth trajectory driven by various factors. India’s large and youthful population contributes to its GDP growth, providing a substantial labor force and a growing consumer market.

B). Strategic Market Entry :

For businesses looking to expand globally, targeting countries with high total GDP might offer more significant market opportunities due to higher economic activity and consumer spending capacity. The substantial GDP of the United States and China makes them attractive markets for expansion and investment. The substantial GDP of the United States and China makes them attractive markets for expansion and investment.

C). Comparative Economic Analysis :

Comparing the GDP of these countries helps in understanding economic disparities and growth potential .This comparison can guide policymakers and business leaders in resource allocation, strategic planning, and identifying growth markets.

D). Investment Opportunities :

High GDP countries are likely to have better infrastructure, regulatory frameworks, and consumer markets conducive to new business ventures. Investment in these regions could yield higher returns given their economic stability and growth potential.

E). Market Demand & Supply Dynamics :

High GDP often correlates with higher demand for goods and services, indicating lucrative markets for various industries. Businesses can tailor their supply chain and product offerings to meet the specific needs of these high-GDP markets.

Recommendations :

• Scenario Planning : Use GDP data in scenario planning exercises to predict future economic conditions and plan accordingly.
• Cross Reference With Other Metrics : Combine GDP data with other economic indicators like unemployment rates, inflation, and consumer spending to get a holistic view of economic health.
• Monitor Economic Trends : Keep an eye on GDP growth trends over time to identify emerging markets and economic shifts.

2). GDP Per Capita vs Population By City :

A) Data Distribution & Clustering :

As GDP Per Capita increases (moving right on the x-axis), the population (y-axis) decreases rapidly at first, then more slowly, forming a curve that asymptotically approaches the x-axis. This pattern suggests that beyond a certain point, increases in GDP per capita are associated with increasingly smaller populations. It implies that very high levels of per capita economic output are typically achieved only in smaller urban areas.

We can identify several clusters from this scatterplot :

a) . High-density cluster: GDP per capita $0-$0.1M, population 0-20M .

b) . Medium-density cluster: GDP per capita $0.1M-$0.2M, population 0-10M .

c) Low-density scatter: GDP per capita >$0.2M, population mostly less than 5M.

B) Outlier Analysis :

• Extreme GDP per capita outliers: 3-4 cities with GDP per capita around $0.4M-$0.5M and populations under 5M .These likely represent highly productive, specialized economic centers .
• Population outliers : 2-3 cities with populations around 35-40M and relatively low GDP per capita (<$0.1M) .These may be megacities in developing countries with large wealth disparities .

C). Trend Analysis : The primary trend is an inverse relationship between GDP per capita and population size . This indicates that as GDP per capita increases, there's a general tendency for city population to decrease. There is a High density of data points at lower GDP Per Capita values (< $0.1M) with a wide range of population sizes. There is a medium density in the middle range i.e. ($0.1M - $0.2M GDP per capita). Low density and more scattered points at high GDP per capita values (> $0.2M).

A few cities with very high GDP per capita (> $0.4M) deviate from the general trend. Some large population outliers (> 30M) with relatively low GDP per capita affect the trend's shape.

There appears to be a point where around $0.1M - $0.15M GDP per capita where the rate of population decrease slows. This could indicate a threshold for developed urban economies.

The trend appears more stable and predictable at higher GDP per capita values.

D) . Economic implications :

• Smaller cities tend to have higher GDP per capita, possibly due to Specialization in high-value industries ,Lower cost pressures allowing for higher nominal GDP figures & Potentially more efficient resource allocation .
• Larger cities show lower GDP per capita, which could indicate Challenges in scaling economic benefits across large populations & Higher income inequality or cost of living pressures .

E) Statistical Consideration :

• There's heteroscedasticity in the data, with variance in population decreasing as GDP per capita increases .
• This analysis reveals the complex interplay between city size and economic productivity, highlighting the need for improved urban and economic policies that account for the diverse characteristics of cities across the economic spectrum.

3 ) Total GDP By Metropolitan Area /city :

This bar chart displays the total GDP for several major metropolitan areas/cities. Let's analyze it in depth .

A) Data Overview :

• New York: $2,163 billion
• Greater Tokyo: $2,081 billion
• San Jose-San Francisco: $1,383 billion .
• Los Angeles: $1,227 billion.
• London metropolitan area: $978 billion .

B) Scale and Distribution:

• The GDP values range from $978 billion to $2,163 billion, a difference of $1,185 billion.
• The mean GDP of these cities is $1,566.4 billion.
• The median is $1,383 billion (San Jose-San Francisco), indicating a slight positive skew in the distribution.

C) Geographical Insights:

The sum of GDP of US cities = New York ($2,163 billion) + San Jose-San Francisco ($1,383 billion) + L.A. ($1,227 billion) = $4,773 billion . Total GDP represented in the chart = New York: $2,163 billion +Greater Tokyo: $2,081 billion + San Jose-San Francisco: $1,383 billion + Los Angeles: $1,227 billion + London metropolitan area: $978 billion = $7,832 billion. So the US cities represent (4773/7832)*100 = 60.94 % of the Total GDP as per the graph .

The chart includes cities from North America, Asia, and Europe, representing major economic centers in developed countries.

D) Economic Concentration:

The top two cities (New York and Tokyo) account for $4,244 billion, or 54.3% of the total GDP shown.

This concentration highlights the outsized economic importance of these global megacities.

E) Intercity Comparisons :

The difference between New York and Greater Tokyo ($82 billion) is smaller than the gap between any other two adjacent cities in the ranking .

F) Potential Underlying Factors :

Industry Concentrations like the big finance companies are mostly based in New York , the tech companies are based in San Francisco and major automobile manufacturing & tech companies are based in Japan which contributed to the rise of GDP of these cities . Less stringent regulatory environments which leads to the ease of investments also can be the contributory factor in the GDP growth .

G) Limitations & Considerations :

The definition of metropolitan areas may vary between countries, affecting comparability.

Exchange rate fluctuations could impact these figures if they're not adjusted for purchasing power parity.

The data doesn't reflect income distribution or quality of life within these metro areas.

4. GDP vs Population By Country :

The scatter plot visualizes the relationship between GDP (in billion US$) and population (in millions) for various countries, providing a platform to analyze economic and demographic trends.

Overview of the Scatter Plot :

X axis : Official estimated GDP (in billion US$) .

Y axis : Total population (in millions) .

Data Points : Each point represents a country, color-coded for differentiation.

OBSERVATIONS :

A) High GDP ,Low Population Countries :

Outliers : Countries like Austria and Australia where the GDP is higher than the total cumulated population .

Characteristics :

a) These countries have high GDP compared to its population indicating high amount of productivity .

b)The economic output per person is high, suggesting a prosperous economy with a high standard of living.

c) Typically, these countries have well-developed sectors such as finance, technology, healthcare, and education.

Economic Implications :

a) Strong Domestic Market : High disposable income leads to robust domestic markets with demand for high-quality goods and services.

b) Innovation Hubs : Investment in research and development is common, driving innovation and technological advancements.

c) Economic Stability: These economies are generally stable with low levels of corruption and strong regulatory frameworks.

Business Opportunities :

a) Opportunities in advanced technology, financial services, and high-end consumer goods.

b) Markets for premium healthcare services and education are significant.

c) High purchasing power translates into demand for luxury and niche market products.

B) Low GDP ,High Population Country :

Cluster : This cluster contains countries such as Afghanistan and Argentina where the GDP is low compared to its robust population .

Characteristics :

• These countries have large populations but low economic output.
• Issues like underdeveloped infrastructure, political instability, lower productivity, and higher poverty levels are prevalent in these countries .
• Economies often depend on agriculture or industries with less diversification.

Economic Implications :

• Growth Potential : Significant potential for economic growth if infrastructural, educational, and political reforms are implemented.
• Development Needs : High demand for basic infrastructure development, healthcare, and educational improvements.
• Urbanization : Potential for rapid urbanization with appropriate investments, leading to economic hubs and industrial zones.

Business Opportunities :

• High potential for investments in infrastructure projects like roads, bridges, and utilities.
• Large markets for affordable goods and services due to vast populations.
• Opportunities to improve and invest in healthcare and educational facilities.

C) Intermediate GDP , Intermediate Population Countries :

Characteristics :

• GDP and population are more balanced, indicating steady economic activity.
• Often in a state of economic transition, with growing industrial and service sectors.
• Moderate but consistent economic growth, with opportunities in specific sectors.

Economic Implications :

• Diverse Opportunities : Balanced economies provide diverse opportunities across various sectors.
• Stable Growth : While not as rapidly growing as emerging markets, these countries offer stable and steady growth.
• Policy Reforms : Governments in these countries may be more proactive in implementing economic reforms to attract foreign investments.

Business Opportunities :

• Opportunities in niche markets and emerging sectors such as technology, tourism, and manufacturing.
• Potential for strategic investments in high-growth areas and joint ventures with local firms.
• These countries can serve as export hubs due to strategic geographical locations and trade agreements

STRATEGIES :

Investment Strategies :

High & Moderate GDP and Population countries : Invest in advanced industries, innovation, and high-value services. Focus on quality, innovation, and advanced services .

Low GDP and Low Population Countries : Focus on affordable infrastructure, education, and healthcare. Potential for high returns if economic growth can be stimulated.

Policy Recommendation :

High GDP & High Population : Maintain policies supporting innovation, trade, and advanced industries.

Moderate GDP & Low GDP with Moderate and Low population : Implement policies for economic reforms, infrastructure development, and improving education and healthcare.

By analyzing the clusters & outliers in the scatter plot we can derive meaningful insights into economic productivity , investment potential & strategic planning . This detailed analysis helps businesses ,investors and policy makers make informed decisions ,tailor strategies to specific market conditions & identify opportunities for sustainable growth .

5. Population-wise GDP in Country :

The map chart visualizes the distribution of GDP relative to population across different countries worldwide. The chart is a geospatial representation that helps identify economic and demographic patterns on a global scale.

Overview :

Data Points : Each bubble represents a country, with the size of the bubble indicating the GDP relative to population.

Geographical Spread : Covers major regions including North America, South America, Europe, Africa, Asia, and Oceania.

OBSERVATION :

A) High GDP Regions :

1) North America :

a) U.S. : The largest bubble indicating a very high GDP relative to its population. The US has a diversified economy with significant contributions from technology, finance, healthcare, and manufacturing.

b) Canada : Also shows a sizeable bubble, reflecting its high GDP and smaller population compared to the US. Canada's economy benefits from natural resources, technology, and a strong service sector.

2) Europe :

a) Countries like Germany, France, and the United Kingdom have large bubbles, indicating high GDPs. These economies are characterized by advanced industries, technological innovation, and strong service sectors.

b) In Eastern Europe the bubbles are smaller compared to Western European countries reflecting lower GDPs & smaller population .

3) Asia :

a) China : significant bubble representing a large GDP relative to its population, showcasing the economic powerhouse status of China. The economy is diverse, with major contributions from manufacturing, technology, and services.

b) Japan : Another large bubble indicating a high GDP with a relatively smaller population compared to China. Japan's economy is known for its technology, automotive, and electronics industries.

B) Medium GDP Regions :

1) South America :

a) Brazil : The largest bubble in South America, indicating the highest GDP in the region relative to its population. Brazil's economy is diverse, with contributions from agriculture, mining, manufacturing, and services.

b) Argentina : Shows a smaller bubble compared to Brazil, reflecting its economic position in the region.

2) Africa :

a) South Africa : The largest bubble in Africa, indicating the highest GDP relative to its population. The economy is mixed, with contributions from mining, manufacturing, and services.

b) Nigeria : A noticeable bubble, reflecting its status as one of Africa's largest economies. The economy is heavily reliant on oil, but there's growth in agriculture and services.

3) Middle East :

a) Saudi Arabia : A significant bubble representing its high GDP, largely driven by oil revenues.

b) UAE : Another noticeable bubble, reflecting its high GDP driven by oil, trade, and tourism.

C) Low GDP Regions :

1. Africa :

a) Countries like Ethiopia and Democratic Republic of Congo have small bubbles, indicating low GDPs and large populations. This reflects the economic challenges and lower levels of industrialization in many African countries.

2. Asia :

a) South Asia : Countries like Afghanistan ,Bangladesh show small bubbles reflecting low GDPs relative to their large population .

b) South East Asia : Smaller bubbles in Cambodia ,Myanmar indicating smaller GDPs which reflects the underdevelopment of the industrial & service sectors.

STRATEGIC INSIGHTS :

1) High GDP country :

a) Potential : These countries offer significant market opportunities due to their large economic output and relatively high standards of living.

b) Challenges : High competition and regulatory complexities in these markets.

2) Medium GDP country :

a) Potential : Emerging markets with growth potential. Investment opportunities in sectors like infrastructure, technology, and services.

b) Challenges : Political and economic instability in some regions, which can affect investment decisions.

3) Low GDP Country :

a) Potential : High potential for growth if structural reforms and investments are made. Opportunities in infrastructure, agriculture, and primary industries.

b) Challenges : Poor infrastructure, political instability, and low human development indicators.

RECOMMENDATIONS :

A) High GDP Countries :

a) Focus : Maintain policies supporting innovation, trade, and advanced industries.

b) Innovation : Invest in R&D and foster innovation ecosystems.

B) Medium GDP Countries :

a) Focus : Implement policies for economic reforms and infrastructure development.

b) Growth Sectors : Encourage investments in high-growth sectors like technology and manufacturing.

C) Low GDP countries :

a) Focus : Develop basic infrastructure, improve access to education and healthcare, and stabilize political environments.

b) Foreign Aid & Investment : Leverage foreign aid and attract foreign direct investments for sustainable development.

6) GDP Per Capita By Metropolitan Area /City :

This table represents the GDP Per Capita of different Metropolitan cities of different countries . The stark contrasting numbers indicate the varying levels of economic development, potentially different industrial compositions, and diverse market opportunities across these regions. The cities with high figures indicate lucrative consumer markets but also higher operational costs, while the city with lower figures indicates the need for more financial and infrastructural expansions .

This KPI card displays a crucial economic metric: the Total GDP, which stands at $64,761 billion (or $64.761 trillion). This figure represents the total value of all goods and services produced within a specific economic region, likely a large country or possibly a group of countries, over a certain period (typically a year). The substantial magnitude of this GDP figure suggests it's measuring the economic output of a major global economy or a significant collective of nations. This KPI provides a high-level snapshot of economic size and productivity, serving as a key indicator for policymakers, investors, and businesses to gauge overall economic health and potential.

The GDP Analysis project provides a detailed understanding of global economic distributions and trends. By visualizing key metrics and identifying significant patterns, the project offers actionable insights for businesses, investors, and policymakers. High GDP countries present substantial market opportunities, while medium and low GDP countries offer growth potential and development needs. Strategic investments and policy implementations tailored to these insights can drive economic growth and development across different regions.