Group items tagged

India's economic growth has exceeded expectations. India's GDP increase by 7.4% which was more than expected. The manufacturing sector that needed to improve grew by 9.4% which helped increase the country's GDP. Trade, hotels and transport, broadcasting, and professional services sectors all saw increases. India's economic growth and increasing GDP shows that the country's economy is getting stronger.

It is estimated that the Indian economy will grow between 8.1% and 8.5% in the 2016 financial year. Trade, hotels and transport & communication and services related to broadcasting, financial, insurance, real estate and professional services and manufacturing have registered growth over 7%. It indicates that although India majorly focuses on primary and secondary industries such as agriculture and manufacturing , the tertiary industries such as the services industry have been largely boosting the economic development in India.

this article look at the economic growth and what caused it in Switzerland. It also explains what the increase in economic growth implies for Switzerland.

Britain is experiencing a downfall in their economy due to less consumer spending. The GDP growth of the country has been slowing at a pace of .3% and according to economist Chris Williamson, this is due to the fact that consumers are being cautious with their spending and are pulling back and also that the manufacturing sector is struggling. The pound value has weakened compared to the euro and dollar. Also a poll done in the service sector shows growth at a slow pace since April 2013.

- In this article, Nomura has seen an 8% GDP growth for the fiscal year. Chief economist in India states that some factors that caused the growth include "policy efforts from both the RBI and government support the projections for higher growth." Foreign investors continue to rise on the stock market which is evidence of the rise in investors participating in the market.

This article describes how the events in Paris affected the economic growth. This illustrates how more factors than taxes and employment can make a difference in level of economic activity. A decrease economic activity might cause the government to intervene by reducing the interest rate, creating incentives to increase consumption. A demand-side policy like this could help the economy get back on its course.

This article discusses global economic growth. For the past several years, aggregate GDP growth has been around 3-3.5% per year, with similar levels of inflation. Growth trends in major economies have slowed and a gap between global aggregate demand and supply for goods/services persists. There is an excess of global supply relative to global aggregate demand. The article claims that falling oil prices, low interest rates, and monetary accommodation are responses to the issue of excess supply.

GDP growth starts here. I chose this article because of one of the TOK questions we had this week it brings up education. Well this article talks about how education can lead to economic growth in many different ways. It doesn't just build up one sector it affects multiple, an interview has shown that people will need more than a high school education if they want to find a suitable job. If education standards increase so do income, technology , jobs all leading to an economic growth and I feel that this is actually even better because since it creates new things there is not chance of people losing jobs so employment is not at risk and as for inflation it will increase in the short run but level off.This research was done by Wössmann.

Overwhelmingly, more economically developed nations are states with a well-educated workforce. There is a clear and strong correlation between the educational attainment of a nation's workforce and economic productivity. Nations can build a strong foundation for economic success and shared prosperity by investing in education. Nations can increase the strength of their economies and their ability to grow and attract high-wage employers by investing in education and increasing the number of well-educated workers by improving the literacy rate. Investing in education is also good for the long run, since employees with higher incomes contribute more through taxes over the course of their lifetimes. Hence it can be concluded that investing in education , will definitely boost GDP maybe not in the short run but indefinitely in the long run.

This article, published by the Wall Street Journal on October 28, 2015, describes cash injections into the economy by the government sector. The article explores what U.S. economic growth could have been like if the U.S. government hadn't cut spending in the economy. The author wagers that if spending had continued, the U.S. economy could have grown more significantly than it has.

Economic growth in Africa is expected to accelerate to 4.7% this year and 5% in 2015, but the advance is failing to translate into job creation and the broad-based development needed to reduce high poverty and rising inequality rates in many countries, the UN has said.

Nation INDONESIA is offering another tax break for employers in labor-intensive sectors, aiming to rein in unemployment, in the latest of its series of stimulus measures, the chief economics minister said on Friday. Economic growth this year is set to be Indonesia's slowest in six years, although third-quarter growth showed a slight rebound.

This article, published on November 30, 2015, describes how the US GDP growth (that is, economic growth) has been slowing in recent months. The article also describes fiscal drags on the economy, interest rates, and investment in US companies.

In the United States, many Americans are finding new jobs. However, most employers are not willing to provide significant pay increases. Recent data, reals that unemployment currently is at a 7 year low but the pace of job growth is slowing. This provides conflicting signals about the country's economic momentum. The unemployment rate has fallen to 5.1%. With such a low rate companies should be competing for workers. However, was have remained flat. Workers are seeing new buying power because prices have been slow to rise and consumer prices have held steady this year partially due to falling commodity prices. Job growth and inflation are linked. As more people get jobs and receive raises, prices increase. At some point, as the labor market tightens, it provides upward pressure on wages and inflation but how long it will take US economy is to that point is still being debated.

This article describes how the United Nations are working with gender equality to achieve greater economic development, and economic growth in this case. The UN is drawing concrete links between women empowerment and greater economic development, illustrating how an androcentric mindset is causing an inefficient allocation of resources.

A trend is shown where global interest rates gone "relentlessly downward over the past few decades". The rich are getting richer, leaving the rest of the group with less wealth. In addition to that, the rich have a "lower propensity to consumer", this has caused the aggregate demand to fall. It has been noticed that central bank rates have also "trended progressively lower". A conclusion has been made in the article that "as long as wealth and income inequality continue to widen, there will be a savings surplus."

The overall article states that China might increase its output and economists are predicting that by looking at the other four major East Asian economies. This relates to our topic because that means the firms and government are investing more and the the economy's exports are increasing

One of the main things we talked about or that stood out to me was how the income of the indivisible affected demand of a good and it seems we all came to a consensus that luxury goods are most affected by changes in income. In the article a BMW car company speaks out it's total revenue has been decreasing as the economy is slowing down . Over the past 5 years China has been experiencing periods of economic downturn and car sales were declining drastically people were even canceling orders, however, increased government action led to a period of economic growth in the third year which increased sales by 4% or so. But things slowed down again this year and Song ( an owner of the company ) talked about how he had to cut prices even further from 4%- 20% just to increase consumer demand even though it only made a slight difference because people's income have decreased they can't spend as much money as they used to on luxury products such as BMW cars or multiple cars, they are now focused on saving money.

I agree that the demand for luxury cars has declined as a result of decreased economic growth in China. Shares of some luxury car companies have dropped by more than 30% in the last year while shares of an inexpensive compact car manufacturer have increased more than 20%. The demand for luxury cars is very elastic. These cars are a luxury, not a necessity. Luxury goods take up a relatively large proportion of income and are used over a long period of time. There are a relatively high number of substitutes for luxury goods. In China, customers are choosing to purchase inexpensive cars rather than luxury vehicles in order to save money.

Amid growing domestic issues, such as corruption and political instability, Mozambique continues to suffer from a lack of foreign direct investment and economic growth despite promising offshore oil deposits. Highlights domestic factors that influence economic growth and development.

The Nigerian government must diversify the economy if the country is to survive falling global oil prices, said World Bank VP and Treasurer, Arunma Otteh. She said that Nigeria ranks 152 out of 188 in the HDI, and ranks below the average for sub-saharan Africa. Life expectancy in Nigeria is 53 years, 8 years lower than Ghana and 21 years lower than Brazil. Nigeria also ranked 136 out of 168 most corrupt countries in Transparency International's 2015 report. This affects the flow of FDI to the country. Nigeria's rapid GDP growth over the past decade hasn't translated to strong human development or competitiveness. Nigeria can no longer only depend on oil, which not sells for as low as $26/barrel which accounts for 95% of the country's foreign exchange.

This article highlights how the GDP is not the only factor in measuring the development of a nation, but how corruption and business confidence can play a role. This is seen by the decreasing oil prices, which has affected the Nigerian economy greatly.

This article describes that United Nations Secretary-General Ban Ki-moon is stressing the importance of human and economic development in addressing peace and security challenges in Africa's Great Lakes region, calling for the use of natural resources there as a powerful driver of growth.

This article shows that a limited liability company named Linn Energy had their stocks lose value heavily, as well as a massive revenue decrease. This happened because of the oil bust, which was a massive decrease in demand for oil. Since the oil demand was becoming elastic due to the fact that it was a necessity for which alternative methods had been or started to be found (coal, solar energy, etc.), there was not much that could be done about the decrease in demand, which in turn took a toll on Linn Energy.

The oil bust definitely would cause a decrease in demand but it would also cause a decrease in supply because a bust is a "decrease in economic growth and production." I however have to say that u probably misunderstood the concept of elastic and inelastic. Oil demand would be inelastic because oil is a product that is necessary for a lot of human activities and since it is a necessity, demand would be inelastic and not elastic.