About World Economics

World Economics - Background

World Economics is an organisation dedicated to producing analysis, insight and data relating to questions of importance in understanding the world economy.

Currently our primary research objective is to encourage and assist the development of better and faster measures of economic activity. In cases where we believe we can contribute directly, as opposed to through highlighting the work of others, we are producing our own measures of economic activity.

Our work is mainly of interest to investors, organisations and individuals in the financial sector and to significant corporations with global operations, as well as governments and academic economists

World Economics Journal

Our first product, World Economics Journal, has over the past decade, carried the writings of many of the world's leading economists and its credentials are further demonstrated by the high caliber line up of its Editorial Board.

Unlike the majority of economic journals, our distinguishing characteristic has been an insistence on authors writing in an easily comprehensible style, without jargon or mathematics, allowing a very wide readership to benefit from the thoughts of our eminent authors. We make available to policy makers the results of advanced economic research without the need for translation from the mathematical forms of output so beloved of the modern day academic economist.

Sales Managers' Indexes

The Sales Managers' Indexes provide the earliest monthly data on the speed and direction of economic activity in the fastest growing areas of the world: Africa, Asia and the America's.

Key advantages of the SMI's :

  • The SMI's provide the first indication each month of the speed and direction of economic growth.
  • The SMI's provide the most complete indication of growth, covering all private sector activity.
  • The SMI's are based on a key occupational group - sales executives - uniquely able to sense accurate changes in business activity levels.
  • The SMI survey base - salespeople - are used by virtually all businesses, including in frontier markets, unlike other occupational groups.
  • The SMI's focus on the worlds growth areas - Africa, Asia and the America's

Why the SMI's are needed

Businesses need growth. Unfortunately much of the worlds growth today derives from countries where economic data is either entirely missing, hopelessly incomplete or just fabricated. The Economist (15.5.14) highlighted the problem in relation to Africa, "Africa is the continent of missing data. Fewer than half of births are recorded; some countries have not taken a census in decades".

World Economics has recently highlighted (in Africa, Asia, and The America's) the huge under-recording of most countries GNP data due to out of date base years and the unrecorded shadow economy.

The SMI's bypass all the data faults of official statistics by obtaining representative samples of replies from panels of salespeople specifically set up to monitor levels of activity. Traders, economists and Government no longer need to guess if Nigerian growth is faltering, or if the Philippines is taking off as a growth market. As a consequence, over 40,000 economists, traders, bank officials, government advisors and others use World Economics data each month.

World Price Index

The World Price Index is calculated monthly from a basket of internationally comparable goods and services. It is designed to alleviate the horrendous problems associated with analysing economic or market data using currency market exchange rates.

To illustrate the problem:

"Imagine that over the last 4 years the US economy has shrunk by 30% and the Chinese economy grown at 2% not 10%. Imagine house prices in the UK have dropped 60% ...This frozen wasteland is not some alternative universe , but what reality already looks like when expressed...in the Japanese Yen"
(quoted from an FT article by Peter Tasker in 2011)

Exchange rates vary with extraordinary rapidity, frequently with little obvious link to economic reality, but fatally distorting the perception of value in markets and economies. It is vital when analysing international data, whether for market analysis purposes, or to allocate resources across the globe, to review data using an international yardstick of value. This can only be done using Puchasing Power Parities (PPP), which make allowance for the purchasing power of currencies within individual countries to make comparisons based on a standard currency, usually "international dollars".

There are various sources of PPP data, but most are of only academic interest as they are years out of date. The World Price Index is the only available index updated monthly to provide an easy way of reviewing trends or relative values of market or economic data in realistic terms.

Global Growth Trackers

The Global Growth Trackers focus on the very latest data for the largest and fastest growth areas of the world.

Noted by Citi Global Markets as:

“a good summary can be found at the China Growth Tracker of World Economics Website.”

Data Quality Index

The Data Quality Index is designed to review the accuracy of GDP data worldwide. Most GDP data is flawed to an extent not many realise, very few countries achieve the high standards which such important data should meet.

World Economics has developed a way to gauge the quality of individual countries GDP data: the Data Quality Index (DQI). The DQI currently covers 5 factors of importance in determining data quality: base years used, national accounts standards used, size of the informal economy, resources devoted to measuring economic activity, and the intensity of corruption. Currently 154 countries are covered by the Index.

GDP Database

The world’s most comprehensive GDP database. Covering over 130 countries with historical GDP PPP data from 1870-2016, building on the lifetimes work of Angus Maddison and bringing it right up to date.