ECONOMICS FOR MANAGERS

PSG INSTITUTE OF MANAGEMENT MBA 2011-13 BATCH I Trimester

Session XVII- For Batch C and D Business Decisions and Government -3 (Contd.)
1 EFM Faculty P.Uday Shankar 12th Oct 2011

Go to website
http://www.reffonomics.com/TRB/chapter21/GDP/

realgdp4.swf

EFM Faculty P.Uday Shankar

12th Oct 2011

Top 10 GDP Countries 2000-2050

The table in the next slide shows the top 10

countries by GDP (Gross Domestic Product)expressed in billions of US$, for the years 2000, 2010, 2020, 2030, 2040 and 2050, listed by projected 2050 rank. SOURCE: Goldman Sachs

EFM Faculty P.Uday Shankar

12th Oct 2011

Comparison of GDPs of some countries

2050 Rank 1 * CHN EU Country Name China Europea n Union * United States India Japan Brazil 2000GD P 1078 9395 2010 GDP 2998 12965 2020 GDP 7070 16861 2030 GDP 14312 21075 2040 GDP 26439 28323 2050GD P 44453 35288

2 3 4 5

USA IND JPN BRA

9825 469 4176 762

13271 929 4601 668

16415 2104 5221 1333

20833 4935 5810 2189

27229 12367 6039 3740

35165 27803 6673 6074

6
7

RUS
UK

Russia
United Kingdom

391
1437

847
1876

1741
2285

2980
2649

4467
3201

5870
3782

8
9
4

GER
FRA

Germany
France

1875
1311

2212
1622 1337

2524
1930 1553

2697
2267 1671

3147
2668

3603
3148

10

ITA Italy EFM Faculty P.Uday Shankar 1078

1788 Oct 2011 2061 12th

EFM Faculty P.Uday Shankar

12th Oct 2011

Indias GDP from 1998 to 2010

INDIA GDP AT 1729.01 BILLION India Gross Domestic Product is worth 1729 billion

dollars or 2.79% of the world economy, according to the World Bank. Historically, from 1960 until 2010, India's average Gross Domestic Product was 339.84 billion dollars reaching an historical high of 1729.01 billion dollars in December of 2010 and a record low of 36.61 billion dollars in December of 1960. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. This page includes: India Gross Domestic Product (GDP) chart, historical data, EFM Faculty and news. 12th Oct 2011 forecasts P.Uday Shankar

EFM Faculty P.Uday Shankar

12th Oct 2011

GDP growth trend

7.70% - Q1, 2011-12

7.80% - Q4, 2010-11 8.30% - Q3, 2010-11 8.90% - Q2, 2010-11 8.80% - Q1, 2010-11 revised 9.40% - Q4, 2009-10 7.30% - Q3, 2009-10 8.68% - Q2, 2009-10 6.33% - Q1, 2009-10 8.50% - 2010-11 8.00% - 2009-10 (Source: Ecofin-surge)
8 EFM Faculty P.Uday Shankar 12th Oct 2011

India's Weakest Growth in Six Quarters

AUGUST 31, 2011

GROSS domestic product (GDP) growth in India

continued to slide falling to 7.7 per cent in the first quarter of the current financial year (April-June 2011-12), against a 7.8 per cent growth in the preceding quarter and an 8.8 per cent growth recorded in the first quarter of the previous year (according to the revised estimates based on the new series of IIP). The country's GDP at factor cost at constant (2004-2005) prices stood at Rs12,26,339 crore, as against Rs11,38,286 crore in the first quarter of the previous fiscal (2010-11), according to figures released by the Central Statistical Organisation (CSO). Sectors driving the first quarter growth include electricity, gas and water supply (7.9 per cent), trade, hotels, transport and communication (12.8 per cent), financing, insurance, real estate and business services (9.1 per cent).
9 EFM Faculty P.Uday Shankar 12th Oct 2011

India's Weakest Growth in Six Quarters

As per the latest estimates of the index of

10

industrial production (IIP), growth in the index of mining, manufacturing and electricity slowed to 1.0 per cent 7.5 per cent and 8.2 per cent, respectively, in April-June 2011-12 against growth rates of 8.0 per cent, 10.3 per cent and 5.4 per cent, respectively, during the first quarter of the previous fiscal. GDP at factor cost at current prices is estimated to have grown 16.7 per cent year-on-year to Rs19,37,123 crore during the first quarter of 2011-12 quarter, against Rs16,59,708 crore in the corresponding period of 2010-11. The sector-wise breakdown showed that the EFM Faculty P.Uday Shankar construction sector had been one of the 12th Oct 2011 worst-

India's Weakest Growth in Six Quarters

Construction grew at 1.2%, down from 8.2% in the

previous quarter, as rising interest rates and delays in planning approvals held up building projects. Agricultural output rose 3.9%, which was down from the previous quarter but above the level of 2.4% in the same period last year. Manufacturing grew 7.2%, an improvement from the previous quarter, but well below the 10.6% in the corresponding quarter of 201011.Private final consumption expenditure (PFCE) at constant (2004-05) prices is estimated at Rs7,95,683 crore in Q1 of 2011-12 against Rs7,48,395 crore in Q1 of 2010-11, while Government final consumption expenditure (GFCE) at constant (2004-2005) prices is estimated at Rs1,36,935 crore in Q1 of 2011-12 against Rs1,34,161 crore in Q1 of 2010-11. Gross fixed capital formation (GFCF) at constant (2004-2005) prices is estimated at Rs4,10,533 crore in Q1 of 2011-12 against Rs3,80,544 crore in Q1 of 2010-11.
11 EFM Faculty P.Uday Shankar 12th Oct 2011

India's Weakest Growth in Six Quarters

The first GDP numbers for the current fiscal confirm

12

several analysts assessment of economic prospects for the financial year which would involve further moderation in growth due to stricter monetary policy to curb inflationary pressures. Signs are already visible as according to data from the Centre for Monitoring Indian Economy, new investment announcements by companies have more than halved to Rs 32.5 lakh crore during April-June 2011 from Rs 71.4 lakh crore in the corresponding period last year as high interest rates, decline in demand and policy uncertainty have taken a toll. Declining investment can only aggravate inflationary pressures as supply sidebottlenecks increase. While the 7.7 per cent growth silhouetted against a murky global scenario seems impressive, given the estimated requirements that we spoke about in our previous blog, a 7.7 per cent and slower future growth could well jeopardize a lotEFM Faculty P.Uday Shankar on achieving deficit targets as well of calculations 12th Oct 2011 as infrastructure development and inclusive growth.

Thanks

13

EFM Faculty P.Uday Shankar

12th Oct 2011