...quarter 2002 volume measure of GDP. In original terms, the balance on current account for 2001-02 was a deficit of $22.2b, up from the deficit of $18.2b in 2000-01. Trend exports of goods and services rose by 0.7% (up 0.4% seasonally adjusted), with exports of goods up 1.0% and exports of services down by 0.9%. Trend imports of goods and services rose by 3.8% (up 6.0% in seasonally adjusted terms), with imports of goods up by 4.3% and imports of services up by 3.0%. In June quarter 2002 the terms of trade index derived from trend estimates (see Explanatory Notes, paragraph 31) rose by 0.5%. The implicit price deflator for exports fell by 1.0%, while the deflator for imports fell by 1.5%. Aside from normal quarterly revisions to recent quarters and the introduction of a new base year and new reference year (described on page 2) some other revisions have been incorporated into the June quarter estimates. These are described below. The three independent measures of GDP using the income approach (GDP(I)), the expenditure approach (GDP(E)) and the production approach (GDP(P)) have been initially balanced for 2000-01 in both current prices and in chain volume terms, resulting in revisions for that year. An investigation revealed that the annual volume movements for GDP(E) and GDP(P) were unbalanced in 1999-2000. Adjustments to ensure balanced movements in both measures resulted in a -0.3% revision to the annual volume growth in GDP in...
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...by two major fiscal crises in Greece: the 1989-1993 crisis, and the ongoing crisis. In both crises deficits exceeded 15,0% of GDP. In between, Greece entered the Economic and Monetary Union and adopted the Euro To facilitate discussion the 20 year period will be divided into two parts: the 1989-1999 period, and the 2000-2009 period. 2 1989-1999: securing EMU membership The 1989-1993 sub-period: Macroeconomic developments Weak economic activity (1.2% average growth) Very high inflation (16.8% annual average) Very high real and nominal interest rates Low fixed investment (1.5% annual average) Fiscal developments Very high general government deficits (13.6% of GDP average) The 1990 deficit reached 15.9% of GDP Primary deficit averaged 4.3% of GDP Fast accumulation of debt Debt ratio increased from 69.0% of GDP in 1989 to 110.1% of GDP in 1993 Other reasons for debt accumulation Very high interest payments From 6.8% of GDP in 1989 to 11.4% of GDP in 1993 3 TABLE 1 Selected Macroeconomic Indicators (annual average rate) 1989-1993 Real GDP growth Fixed investment growth Inflation (CPI) General Government deficit (% of GDP) Primary Deficit (-) or Surplus (+) (% of GDP) Total general government expenditure (% of GDP) Total general government revenue (% of GDP) General Government debt (% of GDP) Current Account deficit (% of GDP) 1,2 1,5 16,8 -13,6 -4,3 48,7 35,1 73,7 -2,6 1994-1999 2,8 6,1 6,8 -7,0 4,0 48,7 41,5 109,0 -3,0 -5,2 0,6 45,5 40,3 101,0 2000-2004...
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...view to updating the data base and shifting the base year to a more recent year. As a result, base years of the National Accounts Statistics series were shifted from 1948-49 to 1960-61 in August 1967, from 1960-61 to 1970-71 in January 1978, from 1970-71 to 1980-81 in February 1988, from 1980-81 to 1993-94 in February 1999, from 1993-94 to 1999-2000 in January 2006 and from 1999-2000 to 2004-05 on 29th January 2010. The reason for periodically changing the base year of the national accounts is to take into account the structural changes which have been take place in the economy and to depict a true picture of the economy through macro aggregates like GDP, consumption expenditure, capital formation etc. For examining the performance of the economy in real terms through the macroeconomic aggregates like Gross Domestic Product (GDP), national income, consumption expenditure, capital formation etc., estimates of these aggregates are prepared at the prices of selected year known as base year. The estimates at the prevailing prices of the current year are termed as “at current prices”, while those prepared at base year prices are termed “at constant prices”. The comparison of the estimates at constant prices, which means “in...
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...606-5304 (GDP) (202) 606-5306 gdpniwd@bea.gov BEA 13-34 Nicole Mayerhauser: (202) 606-9715 (Revision) Brent Moulton: (202) 606-9606 NATIONAL INCOME AND PRODUCT ACCOUNTS GROSS DOMESTIC PRODUCT: SECOND QUARTER 2013 (ADVANCE ESTIMATE) COMPREHENSIVE REVISION: 1929 THROUGH FIRST QUARTER 2013 Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.7 percent in the second quarter of 2013 (that is, from the first quarter to the second quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent (revised). The Bureau emphasized that the second-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 3 and "Comparisons of Revisions to GDP" on page 18). The "second" estimate for the second quarter, based on more complete data, will be released on August 29, 2013. The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and residential investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. The acceleration in real GDP in the...
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...GDP. The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. The GDP report is released at 8:30 am EST on the last day of each quarter and reflects the previous quarter. Growth in GDP is what matters, and the U.S. GDP growth has historically averaged about 2.5-3% per year but with substantial deviations. Each initial GDP report will be revised twice before the final figure is settled upon: the "advance" report is followed by the "preliminary" report about a month later and a final report a month after that. Significant revisions to the advance number can cause additional ripples through the markets. The GDP numbers are reported in two forms: current dollar and constant dollar. Current dollar GDP is calculated using today's dollars and makes comparisons between time periods difficult because of the effects of inflation. Constant dollar GDP solves this problem by converting the current information into some standard era dollar, such as 1997 dollars. This process factors out the effects of inflation and allows easy comparisons between periods. It is important to differentiate Gross Domestic Product from Gross National Product (GNP). GDP includes only goods and services produced within the geographic boundaries of the U.S., regardless of the producer's nationality. GNP doesn't include goods and services produced by foreign producers...
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...Choice of the industry: IT Industry Justification of the choice of industry and players 1. Keeping current dismal economic scenario in mind, IT services industry is direct exposed to parameters such as GDP growth, inflation and exchange rates. 2. The IT industry caters to a wide range of industries such as Banking and Financial Services, Insurance, Telecom, Manufacturing, Retail & Distribution, Life Sciences, Energy, Media, Travel and Government. 3. Their revenue model covers many methods of service delivery such as fixed price, fixed time frame and time-and-material. 4. Foreign currency transactions of these companies and the practices followed. The companies being studied for this exercise are: 1. TCS: Tata Consultancy Services is an IT services, business solutions and outsourcing organization. TCS is part of the Tata group, one of India’s largest industrial conglomerates and most respected brands. Revenue of $10.17 billion (FY12). 2. Infosys: Infosys Limited was started in 1981 by seven people with US$ 250. Today, Infosys is a global leader in consulting, technology and outsourcing with revenues of US$ 6.994 billion (FY12). Many of the world’s most successful organizations rely on Infosys to deliver measurable business value. Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrow’s enterprise. 3. MindTree: MindTree was started in August 1999 by a diverse...
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...I thought he should resist Gibson’s requirement. Because the costs of two options--highly risky private loan and bad relations with the government and prime customers, definitely were too significant to implement those two actions. In addition, due to lack of financial information about Citibank indonesia between 1982 and 1983, I assume the growth rate of Citibank indonesia during those years was parallel to the GDP growth rate. Under the pessimistic economic situation, if Indonesia had same or even a little bit better GDP growth rate in 1984 as in 1983, Mistri’s budget was reasonable. If Citibank Indonesia achieved budget excellent in 1983, I doubt if the budget was made properly in 1982. Perhaps inexperience staff could not have an effective insight about business risk and potentials. Or under bad economy, to get compensation, low level managers understated budgetary profit. The good budget achievement in 1983 was partly because of understated budgetary profit in 1982 and greater GDP growth rate in 1983 than in 1982. Under this circumstance, assuming the same GDP growth rate in 1984, I thought perhaps Mistri could push more to work the increased goal out without bothering those two actions mentioned before. However, if the increased goal...
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...Product or GDP is an economic indicator used to measure a countries status of economic development & status as well as performance. It incorporates the total market value of all the goods and services produced within a particular country. It is calculated on an annual basis which incorporates public consumption, investments, imports & exports, government spending, and private consumption within a defined area (Chron, 2014). PART 1 Country A’s GDP: 140,000 cars Country A’s consumption of GDP by percentage = 64.28% Country A’s GDP per capita = .28 cars Keynesian economics states that government can influence the aggregate demand through intervention policies to stabilize the economy in times of excessive inflation and deflation (Boundless, 2014). During periods of low demand, country A’s government can provide tax breaks to individuals and/or industry to increase buying potential and increase spending as well as purchase additional cars to boost the country’s economy. This process can be worked in reverse in time of excess demand to slow down the economy. PART 2 According to the latest release from the U S Department of commerce Bureau of Economic Analysis, the United States GDP is rising and the country’s Gross Domestic Income (GDI) is rising. This indicates that the current business cycle is in an expansion phase. The real GDP today is $16800 billion and the largest component is consumption. The smallest component of the GDP is net exports...
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...Consequences Abstract Greece has reached a point where, under any plausible macroeconomic scenario, public debt will continue growing faster than GDP. Fiscal consolidation alone cannot close the solvency gap. A substantial reduction in the stock of debt is needed. Even post-debt restructuring, there is no guarantee that the government will succeed in its dual goal of restoring fiscal solvency and closing the competitiveness gap. Yet we think Greece stands a better chance of accomplishing these goals from inside the EMU rather than outside it. This chapter takes stock of the factors that led to the explosion of public debt, the loss of competitiveness, and the failure of the first EU-IMF programme. We also present our views on the likely debt restructuring (and post-restructuring) scenarios. JEL-Code: E600, F400. Antonio Garcia Pascual Economic Research Barclays Capital 5 The North Colonnade Canary Wharf E14 4BB, London United Kingdom Antonio.GarciaPascual@barcap.com Piero Ghezzi Economic Research Barclays Capital 5 The North Colonnade Canary Wharf E14 4BB, London United Kingdom 1. Introduction By April 2010, Greece had lost market access, as the economy was contracting by 3% in real terms, the fiscal deficit - partly on account of unreported spending reached 15% of GDP, and public debt rose to more than 125% of GDP. How did Greece get to that point? As in other peripheral countries, upon joining the euro area, access to...
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...DOMINICAN REPUBLIC General information: Capital: Surface area: Official language: Population: Exchange rate: Santo Domingo 49 thousand sq km Spanish 10.1 million (2011) A$1 = 40.4199 Pesos (Apr 2012) 2007 41.0 71.4 4,379 7,626 8.5 -2,166 -5.3 29.2 6.1 2008 45.5 76.8 4,777 8,060 5.3 -4,519 -9.9 25.7 10.6 Real GDP growth % 10 Imports 8 6 Exports 10 5 4 2 0 2007 Fact Sheet Fact sheets are updated biannually; June and December Head of State and Head of Government: President HE Mr Danilo Medina Sánchez Recent economic indicators: GDP (US$bn) (current prices): GDP PPP (US$bn) (c): GDP per capita (US$): GDP per capita PPP (US$) (c): Real GDP growth (% change yoy): Current account balance (US$m): Current account balance (% GDP): Goods & services exports (% GDP): Inflation (% change yoy): Dominican Republic's merchandise trade A$m 25 20 15 2009 46.7 80.3 4,815 8,275 3.5 -2,331 -5.0 22.1 1.4 2010 51.6 87.5 5,227 8,860 7.8 -4,435 -8.6 22.7 6.3 2011 (a) 56.7 93.4 5,639 9,287 4.5 -4,499 -7.9 24.9 8.5 2012 (b) 59.4 98.8 5,805 9,655 4.5 -4,083 -6.9 26.6 5.5 Dominican Republic's merchandise exports A$m 7 6 5 4 3 2 1 2006 2011 2006 2007 2008 2009 2010 2011 2008 2009 2010 2011 2012 Primary STM ETM Other Australia's trade and investment relationship with the Dominican Republic (d): Australian merchandise trade with the Dominican Republic, 2011: Exports to the Dominican Republic (A$m): 14 Imports from the Dominican...
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...The United Kingdom has the seventh-largest economy in the world, has the second-largest economy in the European Union, and is a major international trading power. A highly developed, diversified, market-based economy with extensive social welfare services provides most residents with a high standard of living. The UK joined the European Economic Community (now known as the EU) in January 1973 and it is a founder member of the World Trade Organization. The United Kingdom is one of the world’s leading advanced economies. And it is the second biggest exporter of services in the global economy and ranked eighth in global exports of goods. The United Kingdom is the world's fifth-largest trading nation, highly dependent on foreign trade. It must import almost all its copper, ferrous metals, lead, zinc, rubber, and raw cotton and about one-third of its food. The United Kingdom's exports manufactured items like telecommunications equipment, automobiles, automatic data processing equipment, medicinal and pharmaceutical products and aircraft. Its main trading partners are European Union countries, The United States, China and Japan. United Kingdom is also the European Union's only significant energy exporter. It is also one of the world's largest energy consumers, and most analysts predict a shift in U.K. status from net exporter to net importer of energy by 2020, possibly sooner. Oil production in the U.K. is leveling off. Therefore, UK should export the oil energy from foreign countries...
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...JAPAN General information: Capital: Surface area: Official language: Population: Exchange rate: Tokyo 378 thousand sq km Japanese 127.8 million (2011) A$1 = 84.2744 Yen (Apr 2012) 2007 4,356.3 4,293.8 34,099 33,609 2.2 210,967 4.8 18.5 0.1 2008 4,849.2 4,343.3 37,976 34,014 -1.0 157,079 3.2 18.5 1.4 Real GDP growth % 6 4 Exports 40,000 2 0 -2 20,000 -4 Fact Sheet Fact sheets are updated biannually; June and December Head of State: HM Emperor Akihito Head of Government: Prime Minister HE Mr Yoshihiko Noda 2009 5,035.1 4,146.6 39,476 32,509 -5.5 141,751 2.8 13.4 -1.3 2010 5,488.4 4,380.3 43,015 34,330 4.4 195,856 3.6 15.9 -0.7 2011 (a) 5,869.5 4,440.4 45,920 34,740 -0.7 120,241 2.0 15.2 -0.3 2012 (b) 5,981.0 4,589.0 46,973 36,040 2.4 130,037 2.2 15.6 0.0 Recent economic indicators: GDP (US$bn) (current prices): GDP PPP (US$bn) (c): GDP per capita (US$): GDP per capita PPP (US$) (c): Real GDP growth (% change yoy): Current account balance (US$m): Current account balance (% GDP): Goods & services exports (% GDP): Inflation (% change yoy): Australia's merchandise trade with Japan A$m 60,000 Australia's merchandise exports to Japan A$m 40,000 2011 30,000 2006 20,000 10,000 Imports 2006 2007 2008 2009 2010 2011 -6 -8 2007 2008 2009 2010 2011 2012 Primary STM ETM Other Australia's trade and investment relationship with Japan (d): Australian merchandise trade with Japan, 2011: Exports to Japan (A$m): Imports from Japan...
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...aggravated it by reducing U.S. oil supplies. That constrained supply and drove up prices. GDP was negative for six of the 12 quarters. The worst was Q2 1980...
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...ZEALAND General information: Capital: Surface area: Official languages: Population: Exchange rate: Wellington 271 thousand sq km English, Māori, NZ Sign Language 4.5 million (2013) A$1 = NZ$1.1115 (Sep 2014) 2009 119.5 128.8 27,622 29,780 -1.4 -2,713 -2.3 29.6 2.1 2010 142.3 133.1 32,517 30,411 2.1 -3,210 -2.3 30.4 2.3 Real GDP growth % 4 Exports 8,000 6,000 4,000 0 2,000 -1 -2 2009 2,000 1,000 3 2 Imports 1 3,000 Fact sheets are updated biannually; June and December Head of State: HM Queen Elizabeth II, represented by GovernorGeneral HE Lieutenant General The Rt Honourable Sir Jerry Mateparae Head of Government: Prime Minister The Rt Honourable John Key 2011 162.7 138.4 36,877 31,368 1.9 -4,699 -2.9 31.6 4.0 2012 170.4 144.4 38,376 32,522 2.5 -7,011 -4.1 30.0 1.1 2013(a) 181.6 150.7 40,516 33,626 2.8 -6,129 -3.4 29.3 1.1 2014(b) 201.0 158.7 44,294 34,975 3.6 -8,540 -4.2 28.4 1.6 Recent economic indicators: GDP (US$bn) (current prices) (c): GDP PPP (Int'l $bn) (d): GDP per capita (US$): GDP per capita PPP (Int'l $) (d): Real GDP growth (% change yoy) (c): Current account balance (US$m): Current account balance (% GDP): Goods & services exports (% GDP): Inflation (% change yoy): Australia's merchandise trade with New Zealand A$m 10,000 Australia's merchandise exports to New Zealand A$m 6,000 5,000 4,000 2008 2013 2008 2009 2010 2011 2012 2013 2010 2011 2012 2013 2014 Primary STM ETM Other Australia's trade and investment...
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...Germany. Greece went on a spending spree on infrastructure, services and public sector wages. Meanwhile, the Greeks stopped paying taxes. To Athens’ delight, banks and the financial markets filled the gap by lending billions of euros. With the onslaught of the credit crunch, Greece’s vast debts were exposed - but so was the exposure of European banks. Euro accession led to an economic boom in Greece and the fiscal policy was pro-cyclical * Adoption of the euro and loose global credit conditions in the 2000s allowed Greece easy access to foreign borrowing that financed a significant expansion of government spending. * Robust private credit growth following financial liberalization also served to boost household consumption. * Real GDP growth...
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