Economics Assignment

Assignment 4.1
Q1
Economic Indicators: They are statistic about an economic activity which
allows analysis of economic performance and predictions for future
performance. They can be classified according to timing (Leading, lagging,
coincident) or by the direction in which they move according to economy
(Procyclical, countercyclical, acyclical)
ECONOMIC
INDICATORS

COUNTRIES
India

U.S.

Brazil

U.K.

China

Japan

German
y

2.8

0.9

0.3

7.8

2.0

0.7

GDP growth (annual %, 2012)

4.7

GDP per capita (current US $)

1,503.
0

51,748 11,339 38,919

.6
.5
.6

6,091.
0

46,730
.9

42,597.
4

GNI per capita (current US $)

1,550.
0

52,340 11,630 38,500

.0
.0
.0

5,720.
0

47,870
.0

45,170.
0

27.3

14.7

51.8

Exports of Goods and services

(% of GDP)

24.0

GNI per capita, PPP

(current international $)

5,080.
0

Inflation, Consumer price

(annual %)

9.3

2.1

5.4

2.8

2.7

0.0

2.0

Life Expectancy at birth,

total(years)

66.2

78.7

73.6

81.5

75.2

83.1

80.9

Internet Users(per 100 people)

12.6

81.0

49.8

87.0

42.3

79.1

84.0

Imports of goods & services(%

of GDP)

30.7

16.9

14.0

33.7

24.5

16.6

45.9

Unemployment, total
(% of total labor force)

3.4

8.1

6.9

7.9

4.5

4.3

5.4

Agriculture, total (% of GDP)

17.5

5.2

0.7

10.1

0.8

CO2 Emissions (metric tons per

capita) as per 2010 standards

1.7

17.6

2.2

7.9

6.2

9.2

9.1

13.5

12.6

31.5

52,610 14,320 35,620 10,900

36,750
.0
.0
.0
.0

43,720.
0

Economics Assignment
Central Government debt, total
(% of GDP)

49.7

93.8

102.6

195.8

56.9

Inflation, GDP deflator (annual

%)

7.2

1.7

5.3

1.7

1.6

-0.9

1.5

Poverty headcount ratio at

national poverty line (% of
population)

21.9

15.9

COUNTR
IES

GDP (current US
$)

India

Population(tota
l)

FDI net
(BoP current
US$)

1,236,686,732.0

15,442,447,343.0

1,858,740,105,864.
2
U.S.

16,244,600,000,00
0.0

313,914,040.0

221,879,000,000.
0

Brazil

2,252,664,120,777.
4

198,656,019.0

68,093,253,945.0

U.K.

2,475,781,990,521.
3

63,612,729.0

14,951,726,742.0

China

8,227,102,629,831.
5

1,350,695,000.0

191,125,000,000.
0

Japan

5,961,065,540,383.
9

127,561,489.0

120,616,000,000.
0

Germany

3,425,928,305,280.
7

80,425,823.0

60,445,461,151.0

Q2
Nominal GDP is GDP evaluated at current market prices. Therefore, nominal
GDP will include all of the changes in market prices that have occurred during
the current year due to inflation or deflation
PPP (Purchasing Power Parity) are the rates of currency conversion that
equalize the purchasing power of different currencies by eliminating the

Economics Assignment
differences in price levels between countries. In their simplest form, PPPs are
simply price relatives that show the ratio of the prices in national currencies of
the same good or service in different countries.
Countries

Nominal GDP
(US $ Bn)

Nominal GDP per

Capita
(US $)

GDP in terms
of PPP (US $
Bn)

Brazil

2,242.85

11,310.88

2,423.31

China

9,181.38

6,747.23

13,395.40

India

1,870.65

1,504.54

5,069.16

Japan

4,901.53

38,491.35

4,698.81

Russia

2,118.01

14,818.64

2,556.20

U.s.

16,779.70

53,101.01

16,799.70

18000

16799.7

16000
14000

13395.4

12000
10000

9181.38

8000
6000

5069.16

4000
2423.31
2242.85
2000

1870.65

0
Brazil

China

India

Nominal GDP (in US $ Bn)

4901.53
4698.81
2556.2
2118.01

Japan

Russia

U.S.

GDP as per PPP (in US $ Bn)

Economics Assignment

GDP per Capita (in US $)

60000

53101.01

50000
38491.35

40000
30000
20000

14818.64

11310.88
6747.23

10000

1504.54
0
Brazil

China

India

Japan

Russia

U.S.

GDP per Capita (in US $)

Q3
INDIAs Foreign Trade (US $ Bn)
YEAR

Total Exports

Total Imports

Balance of Trade

2005-06

103.09

149.17

-46.08

2006-07

126.41

185.74

-59.32

2007-08

163.13

254.65

-88.52

2008-09

185.3

303.67

-118.4

2009-10

178.75

288.37

-109.62

The sustained trade deficit implies low export base (agricultural products,
chemicals, engineering goods
and gems and jewellery) and a high import
base (Petroleum, Coal, iron and other ores)
Q4

Economics Assignment

GDP growth
12

10

6
9.489.579.32
4
5.29

7.97
7.29
6.39
5.365.68

8
6.68
4.3

7.97
7.05
5.39
4.15
3.88

9.32
8.59

6.72

6.21
4.99 4.9

1.43
0

The period since 1991 is considered as the post Liberalization period in the
Economic development of India. The collapse of Soviet Union and the Gulf war
led to an increase in the oil prices globally leading to a balance of payments
deficit, depleting the forex reserves of India. The then PM Narsimha Rao along
with the Finance minister Manmohan Singh brought forward the Liberalization
reforms in the economy (removal of License Raj and reducing tariff rates and
red tapism thereof). This led India to become a free-market economy leading to
more FDIs. Indias relationship with other world economies came to a freeze
when it conducted the 1998 Pokhran nuclear tests leading to a reduction in its
S&P and Moody ratings. However India saw an avg 9% growth rate from 200307. As the world was hit by the Great Recession in 2008, the growth rate of
India reduced though it was amongst the countries least affected by it. Ever
since the announcement of Feds tapering off the QE the economy has seen a
slide down in terms of its GDP growth, which was seen last year in the rupee VS
dollar fluctuations ( CAD increasing).
The World Bank predicts that India would be amongst the third largest economy
of the world by the year 2025.

Economics Assignment

Q5
CPI Inflation:
YEARS

CPI
Inflation
(Average)

CPI Inflation
(Annual)

2004-05

112.203

113.391

2005-06

117.153

119.006

2006-07

125.667

127.888

2007-08

133.364

136.769

2008-09

145.206

149.202

2009-10

164.152

170.517

2010-11

181.44

187.568

2011-12

198.773

205.153

2012-13

219.067

226.468

2013-14

239.83

244.901

Economics Assignment
600
244.9

500

226.47

400

170.52

136.77
300
127.89
119.01
113.39
200
112.2

187.57

205.15

149.2

133.36 145.21
117.15 125.67

164.15

181.44

198.77

219.07

239.83

100
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
CPI Inflation(Avg)

CPI Inflation(Annual)