Service statistics

Submitted to: Miss Jenifer Submitted by : Akshay Patidar (110103)

World Economy: Overall Scenario

After the recession of 2008, the world economy is seen on a revival path since the second quarter of 2009. It is seen as an outcome of revised policies introduced in after the recession stepped in. Yet, the recovery is not uniform across the globe and is not robust enough to provide positive stimulus.

International Finance and Investment, Unemployment and Other factors influence on World Economy The recession of 2008-09 was created by financial institutions and they were the worst hit. However, the cascading impact can be seen in all the economies. The foreign direct investments have gone down drastically because of funds crunch. Lack of foreign investments has dried the resource pool and many projects had to be scrapped. It had direct impact on trade and productivity declined in the absence of financial resources and led to massive layoffs adding to the unemployment rate. The number of unemployment has doubled in United States since 2007. However, the job losses are mostly in the manufacturing and export oriented sector.

World Economy Growth Prospects An increasing number of economies have shown positive recovery though the collective GDP fall is 2.2 per cent for 2009. If recent growth rate is sustained, then a mild growth of 2.8 per cent is an optimistic forecast for 2012 for the global economy. Many manufacturing economies have seen a fall in exports following the change in inventory cycle. Domestic demand was constrained by credit crunch and stringent economic policies. Oil and essential commodities will be playing major role in deciding the recovery model of many economies. The unemployment rate is expected to go down with reopening of the international trade and boost to production once the economies align back to the revised inventory cycle. A strong recovery is expected in the developing countries as compared to the developed nations. It is expected that conditions for international trade will be challenging keeping in view that most of the exports are driven by developed nations. International policy responses were largely successful but needed an international coordination to bring the recovery on full swing.

STATISTICS OF MAJOR ECONOMIES OF WORLD

Country

GDP (nominal)

GDP Growth

Services 45,332,405* 63.6% 4,272,854 71.4% 2,393,689 71.1% 2,059,178 79.8% 1,903,215 78.2% 1,265,397 65% 1,231,978

Industry 21,739,597 30.5% 1,645,707 27.5% 946,029 28.1% 472,217 18.3% 513,527 21.1% 350,418 18% 506,244 28.6%

Agriculture 4,205,365 5.9% 71,813 1.2% 26,933 0.8% 49,028 1.9% 17,036 0.7% 330,950 17% 31,862 1.8%

World

71,277,366 2.7%

Japan

5,984,390

-0.7%

Germany

3,366,651

3.0%

France

2,580,423

1.7%

UK

2,433,779

0.8%

India

1,946,765

6.9%

Canada

1,770,084

4.2%

69.6%

*In millions of dollars

GROWTH OF SERVICE SECTOR

Everything that grows also changes its structure. Just as a growing tree constantly changes the shape, size, and configuration of its branches, a growing economy changes the proportions and interrelations among its basic sectors agriculture, industry and services and between other sectorsrural and urban, public and private, domestic- and exportoriented.

Industrialization and Post industrialization One way to look at the structure of an economy is to compare the shares of its three main sectorsagriculture, industry, and servicesin the countrys total output and employment. Initially, agriculture is a developing economys most important sector. But as income per capita rises, agriculture loses its primacy, giving way first to a rise in the industrial sector, then to a rise in the service sector. These two consecutive shifts are called industrialization and post industrialization (or deindustrialization). All growing economies are likely to go through these stages, which can be explained by structural changes in consumer demand and in the relative labour productivity of the three main economic sectors.

Industrialization

As peoples incomes increase, their demand for foodthe main product of agriculture reaches its natural limit, and they begin to demand relatively more industrial goods. At the same time because of new farm techniques and machinery, labour productivity increases faster in agriculture than in industry, making agricultural products relatively less expensive and further diminishing their share in gross domestic product (GDP). The same trend in relative labour productivity also diminishes the need for agricultural workers, while employment opportunities in industry grow. As a result industrial output takes over a larger share of GDP than agriculture and employment in industry becomes predominant.

Post industrialization As incomes continue to rise, peoples needs become less material and they begin to demand more servicesin health, education, entertainment, and many other areas. Meanwhile, labour productivity in services does not grow as fast as it does in agriculture and industry because most service jobs cannot be filled by machines. This makes services more expensive relative to agricultural and industrial goods, further increasing the share of services in GDP. The lower mechanization of services also explains why employment in the service sector continues to grow while employment in agriculture and industry declines because of technological progress that increases labour productivity and eliminates jobs. Eventually the service sector replaces the industrial sector as the leading sector of the economy. Most high-income countries today are post industrializingbecoming less reliant on industrywhile most low- income countries are industrializing becoming more reliant on industry. But even in countries that are still industrializing, the service sector is growing relative to the rest of the economy. By the mid-1990s services accounted for almost twothirds of world GDP, up from about half in the 1980s.

Service Sector Growth and Development Sustainability The service sector produces intangible goods, some well-know---government, health, educationand some quite newmodern communications, information, and business services. Producing services tends to require relatively less natural capital and more human capital than producing agricultural or industrial goods. As a result demand has grown for more educated workers, prompting countries to invest more in education an overall benefit to their people. Another benefit of the growing service sector is that by using fewer natural resources than agriculture or industry, it puts less pressure on the local, regional, and global environment.

Economic Profile of India

Since the last two decades Indian economy is on a rise and has proved its mettle to the Indian. India is one of the fastest growing economies and is often considered as one of the major super powers. India is an Asian nation with seventh largest land base and second largest in term of population. The economy of India is the largest economy in the Indian by nominal GDP and the fourth largest by purchasing power parity (PPP).

Understanding Indian Economy Indian economy stands today as one of the influential and attractive economy. The liberalization move by the Indian Government in 1990s has given a boost to the Indian economy and put her into a fast track economic growth route. With the beginning of the new millennium, India was considered as an emerging super power. In 2009, Indian GDP based on purchasing power parity (PPP) stood at USD 3.5 trillion making it the fourth largest economy. Indias service industry accounts for 62.5% of the GDP while the industrial sector contributes 20% to the GDP. The agricultural sector which was the back bone of Indian economy post-independence took a back seat in 21st century and contributed only 17.5% to the GDP. India growth rate has been an average of 7% since 1997 and has maintained a growth rate above 5% even in times of global recession. The Information Technology and IT outsourcing services has been the biggest contributor to Indias growth. Indias per capital income (PPP) is not too attractive and stands at USD 4542. India currently accounts for 1.5% of the total Indian trade as per WTO, 2007 publications.

Indian Sector Analysis

Indian Economy VS Industry: Industrial activities accounts for 20% of the economy. India is characterized by small and medium manufacturing units with few major players. 14% of the total workforce is engaged in manufacturing activities. Liberalization has brought in many private players and multinational organizations into manufacturing foray. Services - Service Providers & Services Sector contribution in Indian Economy: India is one of the leading service providers and services sector contributed 62.5% to the GDP and employ 34% of the work force. With large base of English speaking educated people, India has become a preferred destination for business services. Agriculture - Indian Economy: Though agricultural activities employ 52% of the total work force yet it contributes only 17.5% to the total GDP. Mostly, agriculture is carried out using traditional methods and farmers are dependent on heavily on monsoons. Green revolution and white revolution has given a boost to this sector but it is yet embrace technology on a large scale. Banking and Finance - Indian Economy:

India has one the largest network of bank branches and most of the people in India enjoy banking facilities. India has a robust banking economy which was proved by the fact that it remained largely unaffected by the global recessions.

INDIAS SERVICE IMPORTS

INDIAS SERVICE EXPORTS

Economic Profile of Canada

Canada is the second largest country in the world with a population estimated to be 34,198,000 in the year 2010. The northern region of North American continent is majorly occupied by the land of Canada which shares border with USA. Trade, agriculture, mining and the industries are the main source of income for the country. The state has a market oriented economic system enjoying one of the highest economic freedoms worldwide. Canada is among the wealthiest nation in the world and is ranked tenth in the economic status. At present the GDP growth rate in the country has decreased by a 2.4 percentage due to the recession effect.

Major Sources of Economic Income The primary sector is very much efficient in Canada when compared to other developed countries. Mining, forestry, agriculture and fishing are some of the economically important sectors of Canada. These together forms only somewhat below 10% of the country's total GDP and the main contribution towards the total GDP is from the service industry. The manufacturing industry is also an important source of income for the country though it has greatly declined when compared to the last few decades.

Canadian Service Sectors & Canada Economy This is the largest sector in Canada with more number of people employed in it and with the most contribution towards the country's Canada GDP (33 per cent). The retail sector which absorbs over twelve per cent of the total work force of the country is the major service sector in Canada, the next being business services. Tourism, real estate, banking & financial services and entertainment are other service sectors of the country which also supports the economy of Canada. The health and the education sector of Canada which are also among the major services are directly under the government authority.

Canada Agriculture & Canadian Economy The agricultural products form one of the main exports of the country and Canada is the major supplier of wheat and other food grains. It is also the No 1 exporter of food and agricultural products in the world. Though it is the biggest exporter of agricultural products, many places in the country are not fit for cultivation of crops or for any agricultural use due to the location of metal mines in these areas and the agriculture sector have declined over years. United States, Europe and Asia are some of the places to which the agricultural products from Canada are mainly exported.

Canada Manufacturing Industries& Canada Economy As is with the other developed countries, Canada also started to concentrate on the manufacturing industry by the World War II and the manufacturing sector was at its peak in the year 1944 when around 30 per cent of the country's total GDP was obtained from this sector. But the manufacturing industry slowly declined in the country and at present only 13 per cent of the country's GDP is acquired from manufacture related activities. The major manufacturing sectors in Canada are linked with the natural resources, the wood and pulp industry being the biggest. The country is also involved in the manufacturing of automobiles spare parts, and vehicles. Automobile export also serves a major share towards the country's income from trade.

Economic Profile of Germany

Germany is a country located in the Western Europe. Germany is composed of sixteen lands or lander and these sixteen states are also known as Germanys Bundeslnder. The neighbouring countries of Germany are Denmark, Poland, Austria, France, Switzerland, Netherland, Belgium and Czech Republic. Germany is the most populous country in the European Union. In terms of immigration, Germany has been ranked in the third position. The millions of immigrants from different parts of the world are attracted towards the spectacular German economy. The Germany also has a well-developed trade system which includes both import and export services. In the world, it is ranked as the second largest country in terms of export. The export in 2009 alone has gained about $ 1.170 trillion towards the Germany economy. Germany is rich in terms of skilful, talented and educated employers which helped German economy to become pioneers in manufacturing industries like Machinery, Vehicle, electronics, chemicals etc. over other countries in the world. The combined effort of these work force helped Germany to handle the recession period in a pleasing manner. In 2009, the Gross Domestic Product (GDP) -PPP (Purchasing Power Parity) of Germany was found to be $2.182 trillion. Economic Regions of Germany Unlike other European countries which have the national economy concentrated in its capital city, the Germany has more than one economic centre, thus referred to as a polycentric country.

Old Bundeslnder: Ruhr area is one of the most important economic regions of Germany. It is an urban area located in the western most part of Germany between the Dortmund and Bonn. It is the oldest economic centre in Germany. Around 27 companies are situated in this region which includes biomedicine, electronics, aerospace etc. New Bundeslnder: This includes five states which have been re-established through German unification on 3rd October 1990. These five states are Brandenburg, Thuringia, Mecklenburg-Vorpommern, Saxony and Saxony-Anhalt.

Economic Sectors of Germany

Primary Sector: The agriculture is an important activity in Germany. And Germany was ranked as third highest agriculture producer amongst the European Union countries. But after the reunification of Germany, there was a gradual decrease of about 75% in the number of agriculture workers. This resulted unemployment. At

present, agriculture contributed about 0.9 % towards the GDP. The crop products cultivated in Germany are Wheat, Barley, Sugar beet, Potatoes, Cabbages etc. The livestock rearing is also of great importance which included cattle, poultry, pigs etc. About 2.4% of citizens are employed in this sector.

Secondary or Industrial Sector: In 2008, it was estimated that construction and industries contributed about 28% towards the GDP. The most important industries of Germany are automobile, machinery, chemical, food and beverages, steel, coal, cement, ship building, iron, etc. The automobile industries of Germany are ranked third in the world. This sector was found to employ about 29.7% of German citizens. Tertiary Sector: In 2008, the service sectors were found to have contributed a lot towards the German economy. These service sectors accounted for about 69% towards the GDP. The service sector also had improved the employment opportunities in Germany. This sector employs about 67.5% of individuals in Germany.

GDP of Germany from 2000-2009 Germany is positioned fourth in the world as per the GDP (Gross Domestic Product) nominal. And according to GDP-PPR (Purchasing Power Parity), Germany was ranked fifth position in the World. The German economy has flourished so high due to the wellestablished social security prevailing there, and as a result, the Germens were able to lead a high standard life. The GDP growth of Germany from 2000-2009 is as follows:

In 2000, GDP was 2062.50 bn In 2001, GDP was 2113. 16 bn In 2002, GDP was 2141.18 bn In 2003, GDP was 2163.80 bn In 2004, GDP was 2210.90 bn In 2005, GDP was w 2242.20 bn In 2006, GDP was 2325.10 bn In 2007, GDP was 2428.20 bn In 2008, GDP was 2495. 80 bn In 2009, GDP was 2409.10 bn

Economic Profile of United Kingdom

The United Kingdom of Great Britain and Northern Ireland is also known as UK, United Kingdom or Britain. United Kingdom is located in the north western coast of the European Continent. UK is a sovereign state. It is referred to as an island country as its primary territory consists of parts of one or more islands. United Kingdom consists of four counties. They are: England, Northern Ireland, Scotland, s and Wales. It is a unitary state as all these countries are governed as a single unit. United Kingdom is a member of European Union, G 8, G-20, World Trade Organization, Common Wealth of Nations, United Nations Security Council, NATO, Organization for Economic Cooperation and Development (OECD). United Kingdom is a well-developed country. It has a rich economy brought up by economies of its individual countries England, Scotland, Wales and Northern Ireland. Landon which is the capital of UK and England is the most important financial center for international business and commerce. UK is one of the most important globalised countries of the world.

Service Sector of UK

Trade: The trade includes both wholesale and retail. The United Kingdom had a good export as well as import service. In 2004, United Kingdoms trade had brought about 127,520 million towards its economy. Transport and Storage: The transport and storage sectors have together contributed about 49,516 million in 2004 towards the UKs economy. Communication department: In 2004, the various communication sectors of United Kingdom have provided about 29,762 million towards its economy. Real estate: There was a great increase in the property price from 2001 2007. The real estate alone accounted for about 175,333 million towards UKs economy. Other service sectors: Other most important service sectors which contributed a lot towards UKs economy are defence, education, health and social work, Hotels and Restaurants etc.GDP of UK from 1990-2005.

Economic Profile of France

French Republic or France is located in the western most region of the European continent. It is the third largest country in Europe. France is the largest country in the European Union in terms of its area. France is a member of G8, G20, Francophone, NATO, Organization for Economic Cooperation and Development (OECD), Latin Union and WTO. It is one of the founder members of European Union and United Nations. France is one among the worlds developed countries. As per the GDP (Gross Domestic Productivity) nominal, France is the fifth largest country in the world and as per GDP-PPP (Purchasing power parity), it is the 8th largest country in the world. In 2009, the GDP-PPP of France was estimated as $ 2.113 Trillionand the GDP-PPP per capita was $ 32800. France is the second largest country in the Europe in terms of economic development. Thus, the French people lead a high standard of living. The France has a mixedeconomy with a welldeveloped private sector and a well-organized government sector going hand in hand. France was able to withstand in a stable manner compared to other countries of European Union during the recession period with the help of its highly developed consumer base and strategic government spending.

Sectors of France Economy

Tourism - Tourism Sector Contribution France Economy: France is one of the major tourist destinations of the world and is often ranked 1st in the world. In 2007, the total number of tourists who visited France was estimated to be 81.9 million. The tourism department has contributed a lot towards the countrys economy. The Major tourism attraction sites of France are Eiffel Tower, Palace of Versailles, Louvre Museum, Centre Pompidou, Sainte Chappelle, Carcassonne, and Arc de Triomphe etc.

Trade - Trade Sector Contribution France Economy: The trade in France includes both wholesale and retail sector. Both export and import is of equal importance in French economy. The two most important ports in France which made the trade easier are Marseille and Le Havre. As mentioned earlier, France is the second largest country in Europe in terms of trade. In 1998, theforeign trade balance for goods has reached $25.4 billion. 60 % of the Frances trade is done with other countries within the European Union. The most important commodities exported from France are transportation equipment, machinery, aircrafts, chemicals, perfumes, pharmaceutical products, metals

likeiron and steel, beverages etc. France is ranked fifth in the world in terms of import. The most important commodities imported to France are crude oil, plastics etc.

Energy - Energy Sector Contribution France Economy: France does not have a well-developed fuel resource. It doesn't not have its own domestic oil production. The countries majority of the fuel needs are satisfied through import. France mostly concentrates on its nuclear power. About 78% of the countrys electricity is obtained from the Nuclear Energy. France has a well-developed facility for the proper disposal and reprocessing of nuclear waste. France is ranked second in the world in terms of nuclear supply. In 2006, out of the total amount of electricity of 548.8TWh, 428.7 TWh was generated from nuclear power, 60.9 TWh of electricity was generated through hydroelectric powers, 52.4 TWh was generated from fossil fuels, 6.9 TWh from other sources of energies like wind energy, biodegradation of waste matters etc.

Job Scenario of France - Employment and Unemployment Role in French economy: At present, the population of France is about 62 million. Out of this total population, the number of people who are employed is about 25.5 million. Unemployment is one of the major problems faced by the French economy despite its strong economic status. The rate of unemployment in France was estimated as 9.4 %.

Important France Economic Regions: The most important economic regions of France include lsle-de-France, Provence-AlpesCtes d'Azur, Nord-Pas-de-Calais, Pays de la Loire, Aquitaine, Brittany, Lorraine, Picardie, Bourgogne, Auvergne etc.

Economic Profile of Japan

Japan which is referred to as the Land of the Rising Sun is a country located in Eastern side of Asia. It is an island country. It is the only Asian country which is the member of G8. Japan is also a non-permanent member of United Nations Security Council. The Economy of Japan is comprised of a well-developed private sector apart from its highly sophisticated private sector. The public sector of Japans economy is larger than the private sector. The Japans economy is highly efficient in terms of foreign trade but the economy is less efficient in terms of agriculture, service etc. The Japanese economy is technologically well developed and often ranked second in the world. The Japanese people lead a high standard of living and also has high life expectancy compared to other people in other countries of the world. Industrialization in Japan began in the mid-19th century. But the atom bomb massacre of Hiroshima and Nagasaki during the Second World War declined Japans economy through the distraction caused to the industries and its infrastructure. Few years later, the economy started developing and by 1980 Japans economy was ranked second in the world.

GDP Growth Review of Japan & Japan Economy AS per the Gross Domestic Product (GDP) Nominal, the economy of Japan is ranked second largest in the world. According to the GDP-PPP (Purchasing Power Potential), Japan is ranked third largest in the world. In 2009, the GDP nominal of Japan was $ 5.073 Trillion and the GDP-PPP was $4.141 Trillion. The GDP nominal per capita of Japan in 2009 was $ 39, 573. In the same year, GDP PPP per capita was $ 32,817. TheGDP growth of Japan represented in millions of Japanese Yen from 1990- 2005 is as follows:

The GDP of Japan in 1990 was 440,124,900 The GDP of Japan in 1995 was 493,271,700 The GDP of Japan in 2000 was 501,068,100 The GDP of Japan in 2005 was 502,905,400

Service Sector of Japan Service Sector of Japan includes banking, transportation, insurance and telecommunication, which form the countrys backbone. The real estate and retailing are the other most important component of service sector. In 2009, it was found that service sector employed 68 % of the Japans work force. But this sector is very badly affected by the Global Fi nancial Crisis of 2008. To make up this situation, the government has introduced a Stimulus Package of 7.2 Trillion.

Japan Trade: Japan Economy The foreign trade of Japan is an important component of its economy. The foreign trade of Japan had widely expanded by about 60 % between 2001 and 2006. But, the trade has been adversely affected by the global financial crisis of 2008 and a decline of about 30.8% was observed in 2009 compared to previous year. The most important commodities exported from Japan are electrical machinery, transport equipment, chemicals etc. The most important products imported to Japan are fuels, foodstuffs, natural gas etc.

Japan Infrastructure: Japan Economy Petroleum is the main source of energy and accounts for one half of the energy need. One fifth of the countrys energy is obtained from coal, and about 14% from the natural gas. A quarter of Japans electricity is produced through nuclear power. Road way is the major means of transportation in Japan which covers about 1.2 million kilometres. Japan also has a well-developed railway system and many airports.

Job Scenario of Japan In 2008, it was estimated that around 66 million individuals of Japan are employed, which included 40 % females and the rest males. The rate of unemployment in Japan was about 4.1 % in July 2006 and in 2009, it was 4.4%.