Economics Flashcards
Debt as a % of GDP :
India
China
India : 40%
China : 280%
How can shifting power / influence be described?
the power and influence of countries is fluid and constantly shifting
What ‘G’ group are India and China both part of ?
G13
What ‘G’ group are neither China nor India part of?
G8
When was current G8/7 set up?
1975
outdated
pre-economic reforms for I / C
China’s total GDP pre-release
$9.2trillion
India’s total GDP pre-release
$1.8trillion
USA’s total GDP
$16.7trillion
EU’s total GDP
$18.5trillion
How can slow / plateaued growth be countered?
via economy being flexible
X2 examples of how China has proved its economy is flexible;
- mass economic reforms in 1980s
- 2015: relaxation of one child policy
Since when has India’s growth rate been slower than China’s
since 1999s constantly
When did China’s growth rate peak?
2005
What did China’s growth rate peak at in 2005?
14%
What is happening to China’s growth rate for GDP/
slowing down
e. g growth down to 6.3% in 2016
6. 0% by 2017
What is notably about China and its debt?
may suffer future debt overhang problem
What did CHina’s 5 year plan beginning in 2015 highlight? X2
emphasises need to increase innovation
and increase domestic consumption
US GDP growth rate
2.2%
More difficult to do business in India than China. India has been rated the X freest country to do business in?
123rd freest
Hardest criteria of doing business in India
enforcing contracts
money lost to corruption annually in India
$6billion
annual healthcare budget in India
$4million
Historical reason why India may have a business sector burdened by bureaucracy and corruption
post-independence
series of socialist governments with 5yr economic development plans
e.g government granted licences to businesses
When did India receive an IMF loan? What conditions did this require / result in ?
1980s
pressure to liberalise economy
dismantling of the “licence Raj”
How does the USA compare in terms of ease of doing business against I / C?
considerable lower scores
considerably easier to do business
GDP per capita : china and India
India : $1,580
China : $7,590
GDP per capita USA
$54,000
Relationship between democracy and GNI per capita in general
the more Democratic an Asian country, the greater the GNI per capita
When was Japan’s ‘lost decade’?
1990
What caused Japan’s lost decade?
misallocating capital
ended up exporting capital to develop other countries e.g for resources
which caused slowing growth in Japan
What does Japan’s lost decade show about future statistics?
future economic health of nations is at most a guess
2013 prediction for China’s growth : PriceW.Coopers
1/3 of Standard Chartered’s prediction only 3yrs earlier
When is China’s GDP predicted to equal USA’s?
Why may this not be on track?
2030
recent economic slow down - now at 25yr low for growth
China-India trade balance
What does this suggest?
china operating @ surplus
India at deficit
India has dependence on China for manufactured goods
India is not one of China’s largest markets - so little dependence in that way
Chinese exports to India value
$150billion
Indian exports to China value
$17billion
Why is India in a long-term trade deficit with China?
- weak manufacturing sector of its own
- since restrictive trade laws
- inadequate power
= does not meet needs of 1.3+ billion consumers
Agriculture as a % of GDP :
India
China
India : 18%
reflects still rural population
China : 10%
What % of all research and development spending is spent in the US?
30%
What % of global transactions are done in dollars? $$$
80%
Technology Access Index;
India
China
India - 0.32 (medium access)
China : 0.43 (medium access)
