2.4.2 Developed, emerging and developing economies Flashcards
What is the GDP trends in the UK?
Saw growth constantly since 2018 however saw GDP falling significantly during the pandameic by 10.4% in 2020.
Though saw its biggest growth the following year, rebounding from the recession with GDP growth of 8.7%
What is the GDP trends of Brazil?
GDP during the pandemic fell by 3.28% but then rose growth rose to 4.99% the following year. So emerging BRIC country quickly recovered but not as much as developed UK economy.
What is the GDP trends in Russia
Saw negative growth of 2.7% during the pademic. Rebounded to 5.6% in 2021 but fell again in 2022 by 2% during the Russia Ukraine war.
What is the GDP trends of India?
During the pandameic, GDP of India fell by 5.8% but the increased the following year to 7.2%
How has Chinas GDP changed over the years?
China is the only economy which did not enter a recession during the 2008 global recession. Despite their exports falling severly which accounts for around 30% of their GDP, they still saw their biggest growth since 2000 with a growth rate of 14.2% in 2007. Next year in 2008 growth was at 9.65%. One reason may be due to many asian countries relying on China during this time. GDP growth rate has remianed positive every year since 2000 although recently has seen a general decrease by a much larger amount compared to the early 2000s. Perhaps due to the rising costs of production in China as more MNCs demand their land and capital.
many asian banks relied on China and experienced hot money flows
China had recieved over $200bn in capital inflow / hot money (IMF). Hot money seens as a short term capital inflow and helped during the global recession and for China’s economy to continue to grow.
What are the indicators of growth?
- GDP per capita with PPP
- health
- literacy
- HDI
Human capital development
What are the 3 factors of HDI?
GNI per capita at PPP
years of education
life excpectancy
Explain GNI per capita
GNI per capita at PPP so converted to dollars looks at the total income within a country divided by the population to show roughly and on average how much each individual is earning in the country and what their spending power is. Although is not accurate as there will always be unequal distribution of income and wealth.
Characteristics of developed countries
Developed countries have utilised developing countries as a source of cheap production in terms of lower costs of raw materials and labour. The decline of manufacturing in developed countries has led to reduced negative externalities in production in those countries.
However, many developed countries have experienced structural unemployment as a consequences of businesses.
Characteristics of developing countries
many developing countries may find it hard to access
large markets if they are not members of that trading block. The pace of growth of emerging economies has led to large rises in the prices of primary resources and foodstuffs. This has been extremely beneficial in terms of revenues for developing economies, but may not encourage economic diversity which may harm them in future years or in an economic downturn
