Economy Today

By: Hari Shankar
Submitted: 2007-06-26 11:46:53
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

The basic Economic Indicators that reflect Economy Today are :

Gross Domestic Product (GDP) - the total market value of every finished product, whether commodities or services, produced within a country in a specific time period (usually a fiscal year) taken together.

Gross National Product (GNP) - the total market value of all finished commodities and services, produced by the production factors of a country and then disposed off through sales within a particular time period. The outputs from outsourcing of production all add to the GNP of a nation.
Per Capita Income - the total earnings of a country through all means of production in a given time period, divided by the population of that country.

The above are basically used to compare the general economic condition of a population to those of other nations.

World GDP in Economy Today

The Gross Domestic Product of an economy is computed by adding the following :

  • private consumption in the economy
  • investments in business capital
  • total government expenditures on finished goods and services

Net exports of the economy which implies gross imports deducted from the gross exports.

With the gross world product closing in on the $50 trillion mark, as reported by the IMF, the following countries lead in terms of GDP (in trillions of USD) :

  • U.S.A. close to 13.25
  • Japan around 4.5
  • Germany about 3.0
  • China near 2.75
  • U.K. around 2.5

Economy Today : Role of Global Organizations
The World Bank consisting of the IBRD and the IDA basically deal with developing nations and are concerned with :

  • human development
  • rural development
  • land and agriculture
  • protecting the environment from all kinds of adversities
  • infrastructure which means the basic facilities and capital equipments required for the proper functioning of a nation
  • proper and corruption-free administration.

The IMF or the International Monetary Fund looks after the financial scenario of the world by monitoring the following :
exchange rates

balance of payments of nations.

At the same time the IMF also provides financial and technical assistance.
World GDP in Economy Today

The industrialization of traditional economy through modern technical inventions has resulted in a gradual increase in the real growth of World GDP over the years.
World GDP - Real Growth Rate (percentage change) over a few previous years was as follows :

  • 2003 - 3.8% (40.7)
  • 2004 - 4.9% (29.0)
  • 2005 - 4.7% (-4.1)
  • 2006 - 5.1% (08.5)

In 2006, among the countries Azerbaijan stood first in the growth rate of GDP with 32.5 percent, whereas Lebanon with a negative growth rate of -5.0 percent lag at the end of the list.

Economy Today : Inflation

The increase in prices as calculated against a set criterion of purchasing power of the population in a country may be described as Inflation.

It is mainly calculated through :

CPIs or Consumer Price Indexes which takes into account the prices of goods purchased by consumers.

GDP Deflator which considers the prices of goods produced.
Inflation applies a lot of pressure on people in Economy Today, which are basically faced by :

  • people on fixed income
  • the industrial sector (production)
  • international trade and commerce (exports)

Export and Import : Economy Today

Transfer of commodities and services from one country to another in lieu of liquid assets (cash etc.) constitutes international trade and this forms a large section of GDP of a nation.

In the case of most nations, gross exports always exceeds gross imports.

The general trend is that the technologically advanced developed nations account for the largest share of World exports but of recent developing nations like China and India are becoming increasingly major exporters in the World scenario. The export growth rate of the world during fiscal 2004 was around 22 percent, a large increase from about 6.0 percent in 2003.

In the last fiscal (2006) imports increased significantly in comparison to earlier years but nonetheless it could not exceed the slowing exports.

Hari Shankar -, Senior Economist http://www.economywatch.com

Article source: Expert Articles

Most Recent Articles in Business category

  • Thank You Gifts For Daddy - By: Jnet Verra
    Giving gifts for our dads is a great way to show we care and value them in our lives. For business dads, here are a few ideas on what to get them.
  • Favorite Gifts For Corporate People - By: Jnet Verra
    In the corporate world, everyone is striving to be successful, and hardworking people deserve gifts. Here are a few favorites when it comes to business gifts.
  • Corporate video productions: the relationship of Human Resources and the Communications Department - By: Irene M
    The phrase strategic HR management or strategic HRM and corporate video productions are on more and more executives' lips these days. But what do they really mean? There is no single short, snappy definition of the terms. Instead, many people find them easier to understand by envisioning what it looks like in action when they watch your company's video production.
  • Business Gifts Ideas For Christmas - By: Jnet Verra
    Christmas is just around the corner and the people you work with could be on your gift list. Get some ideas on what to give as business gifts.
  • Gift Ideas: Promotional Products - By: Jnet Verra
    Promotional products are important as a marketing and advertising strategy of a company. So use them as gifts to your customers and colleagues.
  • Gifts Ideas To Thank Your Boss - By: Jnet Verra
    A strong relationship with your boss is a good thing in the corporate world. So strengthen your bond by giving your boss thank you gifts.
  • Flipping Luxurious Homes - By: Scott Jarvis
    Prime examples of this are the people who aim their sites only on the most opulent of neighborhoods. Areas that offer such a high standard of living attract home buyers looking for the best of the best and those who are willing to pay for it. For this reason alone it is easy to understand why some people look only to luxury homes for profits.
  • Where To Invest In Real Estate - By: Scott Jarvis
    Currently the majority of investors are flocking to a few principal locations of which, Florida and California are two. Within Florida investors are finding that in communities such as Boca Raton prices have been radically reduced on some extravagant homes. Boca Raton real estate presents investors with the type of opportunity they long for as upscale homes in luxurious communities often rise in value sharply especially when the real estate market is in a state of recovery.
  • Near Infrared Analysis (NIR) - By: Hamilton Sunstrand
    As a Process Analytical Technology (PAT) tool, the NIR (Near Infrared) analyser is the next generation technology for analysing solid and liquid chemical and pharmaceutical formulations. The patented design of NIR offers superior analytical performance with increased sensitivity and precise instrument matching to enhance method development, minimize implementation time and ensure seamless method transferability.
  • How to cash in with PLR Ebooks and Sites - By: Mandeep Singh
    Among private label products, one of the most profitable is the E-book. In the past, marketers purchase resell rights from an e-book author, and resell the text of the material as it is. This strategy works to the advantage of the authors, because their works can be sold with the content intact, and not being compromised.