Yup, it’s that time of year again. A few weeks ago, BP released their latest updates for the production and consumption of energy throughout the world. (These links go to the previous posts on this subject made in 2011, in 2012, in 2013, and in 2014 on the Wealth of Nations.) One thing to note is that, this year, I've added five countries to the list of countries analyzed: Saudi Arabia, South Korea, Indonesia, Mexico, and Italy. This now means that all 15 countries with the largest GDP PPP (as of 2015) are included in this analysis. (The next 3 largest countries would be Iran, Turkey, and Spain, which I would like to add next year to the analysis.)
Here are some conclusions before I get into a detailed breakdown of the analysis for this year.
(1) The US economy (as measured in [TW-hrs] of useful electrical and mechanical work produced) increased by 1.0% in 2014.
(2) Many countries had negative growth rates in 2014: Mexico (-1.5%), Canada (-1.8%), Germany (-2.3%), France (-2.7%), Japan (-3.0%), Italy (-4.0%) and the UK (-4.8%). This was a particularly bad year for the UK as far as generating useful work. There were two countries with near-zero growth rates: South Korea (0.0%) and Russia (0.5%.) The major countries with the highest growth rates were: China (3.3%), Indonesia (3.6%), Brazil (3.7%), Saudi Arabia (7.4%), and India (7.8%.) This was a particularly good year for India and Saudi Arabia, which is one reason that Saudi Arabia is now on my list of countries to analyze. (Another reason is that it's economy is very different than other countries I analyze, so it'll be good to see how their useful work generation compares with their GDP PPP.)
(3) The purchasing power parity GDP (i.e. PPP GDP) remains a pretty good reflection of a country's capability to do mechanical and electrical work. However, there are still some countries who generate a lot more useful work [TW-hr] than they are given credit in their GDP PPP. These countries are: Canada, South Korea, and Saudi Arabia. However, there are a number of countries whose GDP PPP is significantly higher than their generation of useful work: Indonesia, Italy, UK, Germany, and India. Of these, Indonesia has the widest gap between their GDP PPP and their generation of electrical+mechanical work. It's not clear to me why there is such a difference between Canada and Indonesia. As I'v mentioned before, if I were a Canadian representative for the IMF, I would voice my concern that the IMF is underestimating the size of the Canadian economy by at least two fold.
So, now I'm going to present a more detailed breakdown of the analysis and present the data in graphical form.