🗊Презентация World economics intro

World economics intro Prof. Zharova Liubov Zharova_l@ua.fm

Course structure

Prognosis of countries development in 1990s and reality

New The Gross Domestic Product (GDP) of an economy is a measure of total production. More precisely, it is the monetary value of all goods and services produced within a country or region in a specific time period. While the definition of GDP is straightforward, accurately measuring it is a surprisingly difficult undertaking. Moreover, any attempts to make comparisons over time and across borders are complicated by price, quality and currency differences. This article covers the basics of GDP data and highlights many of the pitfalls associated with intertemporal and spatial comparisons.

World development in dynamic

GDP, GNP, GNI and gdp ppp

Top 100 companies by country – trends 2009-2017

Changing world

Fastest-growing economy The US may not dominate for much longer, however. Although China trails the US by $7 trillion, it’s catching up. China’s economy grew by 6.7% in 2016, compared with America’s 1.6%, according to the IMF. China has also overtaken India as the fastest-growing large economy. The IMF’s World Economic Outlook estimated China’s economy grew at 6.7% in 2016, compared with India’s 6.6%. Brazil’s economy has contracted in the last year by 3.5%, the only one in the top 10 to do so. The Asian bloc clearly has a larger share than anywhere else, representing just over a third (33.84%) of global GDP. That’s compared to North America, which represents just over a quarter, at 27.95%. Europe comes third with just over one-fifth of global GDP (21.37%). Together, these three blocs generate more than four-fifths (83.16%) of the world’s total output.

The biggest economies in 2050 A new study by PricewaterhouseCooper says that China will be in first place by 2050, because emerging economies will continue to grow faster than advanced ones. India will rank second, the US will be third, and fourth place is expected to go to Indonesia. The UK could be down to 10th place by 2050, while France could be out of the top 10 and Italy out of the top 20 as they are overtaken by faster-growing emerging economies such as Mexico, Turkey and Vietnam. The report also says that the world economy could more than double in size by 2050, far outstripping population growth, due to technology-driven productivity.

The world in 2050

Rule 72 The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. If Gross Domestic Product (GDP) grows at 4% annually, the economy will be expected to double in 72 ÷ 4 = 18 years. GDP grows at 1% - the GDP doubled in 72 years GDP grows at 7% (the world higher level of growth) – the GDP doubled in 10 years GDP growth of Ukraine 2,3 China 6,7 USA 1,5 World 2,24

Income Incomes per person in poorest countries are $300-500, for developed – above $20,000 For transition with 7% growth the model will looks like:

Megatrends: 5 global shifts changing the way we live and do business Rapid urbanization Climate change & resource scarcity Shift in global economic power Demographic and social change Technological breakthroughs