TOP 10 ECONOMIES OF THE WORLD

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TOP 10 ECONOMIES  OF THE WORLD

 

1. UNITED STATES

Ø Largest economy in world in terms of nominal GDP. Ø Economic superpower, highly advanced in technology & infrastructure & has abundant natural resources.

Ø Services sector, Manufacturing & Agriculture contributes 80%, 15% & 2% of output respectively. Ø 2nd largest manufacturer in world & a leader in automobiles, aerospace, machinery, telecommunications & chemicals.

Ø Housing market & several banks collapsed in 2008, resulting in the deepest & longest downturn in U.S. economy. Ø Expansionary monetary policies supported the economy.

Ø Currently emerging from a period of considerable turmoil

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2. CHINA

Ø Initiated Market Reforms in 1978.

Ø Transformed from centrally planned closed economy to manufacturing & exporting hub.

Ø Achieved average 10% growth annually for over a decade (2002-13).

Ø Lifted almost half of its 1.3 billion population out of poverty.

Ø Second largest economy .

Ø Equal contribution from Manufacturing & Services (45% each) with a 10% contribution by Agriculture sector.

Ø Slowed recently to a growth between 6-7%.

Ø Exports projected to grow only by 1.9% in 2016.

3. JAPAN

Ø World’s 3rd largest economy (Nominal GDP).

Ø Average growth rates of 10% in 1960s, 5% in 1970s, & 4% in 1980s.

Ø Tokyo Stock Exchange crashed in 1990-92.

Ø 1.5% growth throughout 1990s.

Ø Labour force shrunk 0.17% a year since 2000.

Ø Built up Manufacturing & Processing industries to convert raw materials imported from abroad. Ø Labour force shrunk 0.17% a year since 2000.

Ø Weakness include human capital, low rate of female participation in labour force.

Ø Strength includes excellent infrastructure, healthy workforce, strong innovation ecosystem, adoption of new technologies & high quality research institutions.

4. GERMANY

Ø Europe’s largest & strongest economy.

Ø Exporter of machinery, vehicles, household equipment & chemicals.

Ø Strengths include highly sophisticated businesses, skilled labour force, rapid uptake of new

Ø Economy facing challenges ranging from Brexit, Greek debt crisis to the refugee crisis.

Ø Funded lion’s share of large rescue packages for fellow Eurozone members.

Ø Growth has slowed, but unemployment rate is one of Europe’s lowest.

5. UNITED KINGDOM

Ø Services sector contributes more than 75% of GDP.

Ø Manufacturing second imp. contributor & Agriculture contributing a minimal1%.

Ø 60% of U.K’s food needs is produced domestically.

Ø Strengths include solid institutions & best universities.

Ø Weakness include high government deficits.

Ø Economic Prospects are highly uncertain after the Brexit event.

Ø Pound depreciated from 1.6 to 1.24 against USD

6. FRANCE

Ø 6th Largest economy.

Ø GDP (PPP) per capita of $ 42, 384.

Ø Low poverty & high standard of living.

Ø Primary exports are machinery & transportation equipment, aerospace equipment & plastics.

Ø Primary imports are machinery, automobiles &

Ø Germany is closest trading partner.

Ø Chemical industry is a key sector.

Ø 70% of GDP stemming from Services sector.

Ø One of Global Leaders in automotive, aerospace, railway sector, cosmetics & luxury goods.

Ø Stagnant growth between 2012 & 2014.

Ø High unemployment rate.

Ø Growth picked up in 2015 with a growth of 1.2% & a forecasted growth of 1.5% for 2016 & 1.7% for 2017. 7.

7. INDIA

Ø Economic liberalisation since 1991 moved country towards market-based economy.

Ø Highly dependent on Agriculture.

Ø Services sector picked up in recent years.

Ø By 2008, India becomes one of the world’s fastest growing economies.

Ø Bright spot in global landscape.

Ø Developing economy with 7% plus growth.

Ø Major initiatives like Make in India, Digital India, Demonetisation of old currency, GST Implementation, FDI reforms cites the growth & robustness of economy.

8. ITALY

Ø Prominent economy of the Eurozone.

Ø Services & Manufacturing sectors are major pillars.

Ø Agriculture contribution is comparatively low & employs around 4% of total workforce.

Ø Suffers from a huge public debt estimated to be about 133% of GDP, banking system is close to a Ø High unemployment.

Ø Suffers from political instability, economic stagnation & lack of structural reforms.

Ø Saw a positive economic growth in 2015.

9. BRAZIL

Ø Largest economy of Latin America & 2nd largest in the Americas.

Ø Services, manufacturing & agricultural sectors contribute around 68%, 26% & 6% respectively . Ø One of the fastest growing major economies from 2000 to 2012.

Ø Growth decelerated in 2013.

Ø Negative growth rate of 3.2% during recession in 2015.

Ø Government is making progress on fiscal reforms.

Ø GDP contracted by 3.8% in 2015, & is expected to fall at least 3% more in 2016.

Ø Realignment of regulated prices combined with pass-through exchange rate depreciation have caused an inflation peak in 2015. 10.

10. CANADA

Ø Highly service oriented economy.

Ø High growth in manufacturing as well as in the oil & petroleum sector.

Ø One of the world’s wealthiest nations.

Ø Member of OECD & G7.

Ø Logging & Oil industries are 2 important areas.

Ø Sizable Manufacturing sector, with automobile & aircraft industries being important.

Ø 8th largest commercial fishing & seafood industry in the world.

Ø Closely tied to US economy.

Ø Leading exports include oil, minerals, automobiles, manufactured goods, & forest products.

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