Tag Archives: GDP

Slowdown Over, Growth Recovery in 6 Months: Montek

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The economy will turn the corner in the next six months as the deceleration of the past several quarters has been arrested, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

“It is our hope that in the second half of the year, which has begun just now, many of the measures taken by the government in the recent past to revive investor confidence will lead to a turnaround setting in in the second half,” Ahluwalia said while addressing a banking summit organised here by Yes Bank and Financial Times.

Confident of better GDP numbers in the second half, Montek said, “In the first six months of the current year, GDP growth is around 5.5percent… And I think the second half will be better. Somewhere around 65 is a reasonable basis to start working from. It could be a little better, it could be a little worse.”

Basing his optimism to the pick up in the August IIP numbers as also in the recent PMI surveys, Ahluwalia said there are signals of an up-tick.

“We have two signals already, the industrial production index appears to have gone up a little in August and PMI is doing a little bit better.

“I am using that as a touchstone… The government is back in action. Therefore I am willing to interpret the slight up-tick in the industrial production index as an example of deceleration having been arrested. I am not actually saying that resurgence has begun, but what we have done [policy actions] the impact will be delayed,” Ahluwalia said.

After languishing for many months, the factory output numbers for August showed growth at 2.7 percent, but the April-August IIP remains almost flat at 0.4 percent against 5.6 percent in the year ago period.

The IIP readings were low due to the poor show by the manufacturing sector and contraction in capital goods output.

Partly blaming the coalition pressures on the policy delays, Ahluwalia said, “We took time taking the reform measures because of the pressures of coalition, there was a consultative process to be carried.”

He also said the slowdown is not primarily due to global slowdown. “Our analysis is that the slowdown is not because of international factors, our perception is that there are many domestic concerns such as procedural and implementation issues, especially in case of large infra projects.”

Stating that the growth deceleration being witnessed for the past several quarters has certainly ended, he said, however, that it is still too early to say whether it’s actually a turn-around, although the government has taken a number of steps to boost investor confidence.

“It is reasonable to say that the slowdown has certainly ended but we are yet to see how strong this recovery is going to be,” Ahluwalia told the summit.

On the latest inflation numbers, which inched up to 7.81% in September, up from 7.55 percent in the previous month on higher diesel prices, he said it’s better than last year but still not at our comfort level of 5-6 percent.

“You can’t say that the economy is overheated. Inflation is above the comfort level. There is no question about it… but it is a lot better than last year. I think the government has taken a number of steps which give us more fiscal room than we had before… We have seen a lot of positive action. We will be able to take inflation to more moderate levels,” Ahluwalia said.

Source: PTI

India Will be World’s Third Largest Economy by 2030

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India will world’s third largest economy by 2030 but its energy demand will slow down to 4.5 per cent, global energy giant BP plc said.

“By 2030 China and India will be the world’s largest and third largest economies and energy consumers, jointly accounting for about 35 per cent of global population, GDP and energy demand,” BP’s chief economist Christof Ruhl said releasing BP’s Energy Outlook 2030.

There would be “no surge in energy demand as India industrialises. Demand growth slows to 4.5 per cent per annum (vs. 5.5 per cent p.a. in 1999-2010) as improvements in energy efficiency partly offset the energy needs of industrialisation and infrastructure expansion.”

India’s dependence on imports to meet its gas needs will jump to 47 per cent by 2030 while the same for oil will grow to 91 per cent. The nation will be 40 per cent dependent on imports to meet its coal needs.

He said India remains on a lower path of energy intensity; by 2030 it consumes only about half the energy that China consumes today, at a similar income per capita level as in China today.

Over the next 20 years China and India combined account for all the net increase in global coal demand, 94 per cent of net oil demand growth, 30 per cent of gas, and 48 per cent of the net growth in non-fossil fuels.

Coal remains the main commercial fuel, but its share falls from 70 per cent to 55 per cent in China as a result of maturing industrial structure, and from 53 per cent to 50 per cent in India due to domestic resource constraints.

Oil’s share is flat at 18 per cent in China and falls to 26 per cent in India, constrained by prices and growing import dependency. Gas gains market share along with nuclear and renewables in both countries, BP said.

In India, the share of industry continues to grow, as infrastructure development catches up and manufacturing expands to absorb a growing labour force, but it never reaches the Chinese level. “India therefore remains significantly less energy intensive, with a relatively high share of the service sector in GDP.”
Source: PTI

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Richest Countries in the World in 2012

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If wealth describes power, then the United Sates leads the pack and India is not far behind either.

The 10 richest countries in the world based on their GDP are:

1. United States of America:

The United States of America is the richest country in the world and ranks first on the list. The U.S. is a market-oriented economy where private individuals and business companies make most of the decisions. The U.S. economy is the world’s largest national economy, with an estimated GDP of $15.1 trillion in 2011.

2. China:

China is the second richest country in the world. China’s annual GDP growth is 2.26 percent earning $7,743.144 trillion. The country’s economy is the second largest in the world after that of the United States. During the past thirty years China’s economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented one that has a rapidly growing private sector.  A chief component supporting China’s rapid economic growth has been exports growth.

3. Japan:

Japan is the second Asian country which is on the list. It is the third wealthiest country in the world. Japan is renowned for its aggressiveness in the global economy market having an upper hand in multi-national operation. The country has a USD $6,124.899 trillion. The Japanese economy is the third largest in the world. Japan is the world’s second largest automobile manufacturing country and has the largest electronics goods industry. The country is the world’s largest creditor nation as well. Its economy is highly efficient and competitive in areas linked to international trade, though productivity is far lower in protected areas such as agriculture, distribution, and services.

4. Germany:

 Germany takes the fourth place on the list. It is also the richest country in Europe and has produced a sum of USD $3,706.970 trillion. Ever since the age of industrialization, the country has been a driver, innovator, and beneficiary of an ever more globalised economy. Germany is the largest national economy in Europe. The country is the world’s second largest exporter and its exports account for more than one-third of national output.

5. France:

France is the fifth richest country in the world. The country has long been part of the world’s wealthiest and most developed national economies. France is believed to be the second biggest economic strength in Europe due to France’s focus on various industrial support and new age industrialized nations. Achieving USD $2,889.708 trillion booked at the end of year 2011 and 2012 makes France feature on the top five richest nations.

6. Brazil:

Brazil ranks sixth on the list. It is the richest South American county. The country had a closed nominal GDP of 0.80 percent earning USD $2,617.987 trillion before the end of 2011. The Brazilian economy is the world’s sixth largest by nominal GDP and is expected to become fifth by the end of 2012. Brazil’s earning come directly from their service segment, mining, manufacturing products and farming harvest. The country has moderately free markets and an inward-oriented economy. It is also known to be the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent.

7. United Kingdom:

United Kingdom takes the seventh place on the list. UK had an average nominal GDP escalation of 0.58 percent earning USD $2,603.880 trillion at the end of 2011. UK’s GDP per capita is the twenty second highest in the world in nominal terms and the twenty second highest measured by PPP. It is the world’s most globalised countries. Its aerospace industry is one of the largest national aerospace industries and the pharmaceutical industry of the country plays an important role in its economy as well. The British economy is boosted by North Sea oil and gas reserves which was valued at an estimated £250 billion in 2007.

8. Italy:

Italy takes the eighth spot on the top 10 list of richest countries in 2012. Italy is a member of the G8 group of leading industrialized countries. The country has broadened its horizons for its industrial and road and rail network developments. Due to this advancement, the country has a nominal GDP of USD $2,287.704 trillion. The country has a diversified industrial economy with high gross domestic product per capita and developed infrastructure. The Italian economy is driven in large part by the manufacture of high-quality consumer goods that are produced by small and medium-sized enterprises.

9. Russia:

Russia takes the ninth position on the list. In 2011 Russia’s GDP grew by 4.2 percent, which is the world’s third highest growth rate among leading economies. The country has the ninth largest economy in the world by nominal value and the sixth largest by purchasing power parity. Russia is also abundant in natural gas, coal, oil and precious metals. Russia’s capital, Moscow, is noted to have the highest billionaire population of any city in the world.

10. India:


Surprisingly India makes it to the top 10 list of richest countries in the world. India takes the tenth place. India has the eleventh largest Economy in the world by nominal GDP and the third largest by purchasing power parity. The country’s present up-to-date development according to GDP is USD $2.012.760.000 million and this was predicted by the economists in the beginning of 2011. As a matter of fact, by means of the assessment, there was an 8.2 percent progress before the year 2011 came to an end.

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World’s Richest Countries

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If wealth is the power then Qataris have the most as Qatar is the richest country in the world. Forbes ranked the world’s richest countries based on their gross domestic product (GDP) at purchasing power parity per capita, the value of all final goods and services produced within a country in a given year. Qatar was followed by Luxemburg and Singapore.

The list of the richest countries of the world includes:

1. Qatar:

The Persian Gulf emirate with a population of 1.7 million people ranks as the world’s richest country per capita. Thanks to a rebound in oil prices and its gigantic natural gas reserves. Adjusted for purchasing power, Qatar booked a probable gross domestic product per capita of more than $88,000 for 2010.

Qatar has the third-largest reserves of natural gas in the world, and the country has invested heavily in infrastructure to liquefy and export it and to diversify its economy. Qatar has attracted multinational financial firms to the country, as well as satellite campuses of U.S. universities. The government is pouring money into infrastructure, including a deepwater seaport, an airport and a railway network, all with an effort to make the country a better host for businesses and the 2022 World Cup.

2. Luxembourg:

The second place is taken by Luxembourg. The country has a per capita GDP on a purchasing-power parity basis of just over $81,000. Luxembourg with half a million people became a financial hub in the latter half of the 20th century, partly due to strict banking secrecy laws that earned it the reputation of a tax haven.

3. Singapore:

Singapore is the third richest country in the world. The city-state thrives as a technology, manufacturing and finance hub with a GDP (PPP) per capita of nearly $56,700.

The country has one of the highest per-capita GDP in the world. In addition, its port infrastructure and skilled workforce, which is due to the success of the country’s education policy in producing skilled workers, is also essential in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skills needed to refine imports into exports.

4. Norway:

Norway ranks fourth on the list. Norway’s petroleum accounts for nearly half of exports and over 30 percent of state revenue. It is the main contributor to its PPP-adjusted GDP per capita of nearly $52,000.

The country is also one of the largest gas exporters of the world. Shipping has also long been a support of Norway’s export sector, but much of the country’s economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Norway has a very high standard of living compared to other European countries and has a strongly integrated welfare system. Norway is the world’s second-largest gas exporter and its position as an oil exporter has slipped to ninth-largest.

5. Brunei:

Brunei is the fifth wealthiest country in the world. It has a GDP (PPP) per capita of about $48,300. The country is rich due to its extensive petroleum and natural gas fields.

Brunei Darussalam‘s economy has been dominated by the oil and gas industry for the past 80 years, and the hydrocarbon resources account for over 90 percent of its exports and more than half it’s GDP. The country currently has the second highest GDP per capita in the Southeast Asian region and is the fourth largest oil producer in the region and ninth largest exporter of liquefied natural gas in the world.

6. United Arab Emirates:

The United Arab Emirates took the sixth position on the list. UAE looks to its oil and gas for about 25 percent of its GDP, which is nearly $47,500 per capita (PPP).

Though the UAE is becoming less dependent on natural resources as a source of revenue, petroleum and natural gas exports still play an important role in the economy, especially in Abu Dhabi. A gigantic construction boom, an expanding manufacturing base, and a thriving services sector are helping the UAE diversify its economy.

7. United States of America:

United States is the seventh wealthiest country in the world. The country has a per capita GDP on a purchasing-power parity basis of just over $46,000. The U.S. is the largest trading nation in the world and its three largest trading partners as of 2010 are Canada, China and Mexico. The country has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment.

The U.S.A remains the world’s largest manufacturer, representing a fifth of the worldwide manufacturing output. Of the world’s 500 largest companies, 133 are headquartered in the United States. It is also one of the world’s largest and most influential financial markets.

8. Hong Kong:

Hong Kong is the eighth richest country in the world.  The country is dependent on international trade and finance. The GDP (PPP) per capita of Hong Kong is estimated to be $45,944.

As one of the world’s leading international financial centers, the country has a major capitalist service economy characterized by low taxation and free trade. Hong Kong’s economic strengths include a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves and rigorous anti-corruption measures.

9. Switzerland:

Switzerland ranks ninth on the list. The GDP (PPP) per capita of the country is $41,950. The country has one of the world’s most stable economies.

The country’s policy of long-term monetary security and political stability has made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investment. Due to the country’s small size and high labor specialization, industry and trade are the keys to Switzerland’s economic livelihood. The country has achieved one of the highest per capita incomes in the world with low unemployment rates and a balanced budget.

10. Netherlands:

Netherlands is the tenth wealthiest country in the world. The GDP (PPP) per capita of the country is over $40,900. The country’s main industries include agriculture, metal, and engineering products.

The country’s government plays a very active role in maintaining a high standard of living for its citizens. Unemployment is also low because thousands of people have simply dropped out of the labor force and are living on government benefits. The country is a model of liberal social policy and lenient economics.

Australia ranked eleventh on the list of the world’s richest countries while Austria ranked twelfth. Ireland, Canada and Kuwait took the thirteenth, fourteenth and fifteenth position respectively.

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