Economic Growth and Development in USA

Key Macro Data (2015 or latest) Background Information

Aspects of Development
2.3% Currency unit USD
Latest annual GDP
(2.5%-3%
Growth (%) Latest HDI ranking 10/188
target) Free
57,600 Exchange rate system floating HDI score
GDP or GNI per capita exchange Income inequality HDI
(US $, at PPP) falls
adjustment
Policy interest rate 1.5% 13.5%
1.3%
Inflation (%) NAFTA Gender inequality HDI
(rising) 43/188
Member of a Regional TTIP ranking
Unemployment rate Trade Agreement CAFTA
4.9%
(% of labour force) % of population living in
APEC 6.5%
extreme poverty
Fiscal balance Current account -2.6%
-3.5%
(% of GDP) balance (% of GDP) (deficit) Life Expectancy at birth
80 years
Main corporate tax rate (years)
Govt debt (% of GDP) 106.1% 40%
(Per Cent) Gini coefficient (Latest
2.56% yield 0.40
Yield on 10-Yr Govt Competitiveness rank 2/144 published estimate)
on Euro
Bonds (Per Cent)
Bond Corruption Perception Inward FDI (% of GDP) 2.6%
18/185
Ranking
Investment
20.98% Remittances (% of GDP) 0.035%
(% of GDP) Ease of Doing Business
6/189
Ranking
Gross national savings
18% External Debt Aid (% of GDP) 0
(% of GDP) 98%
(% of GDP)
 Economic Growth and Development in China
Background Information
Key Macro Data (2015 or latest)
Currency unit RMB Aspects of Development
6.8%
Latest annual GDP Crawling peg
(6.5% Exchange rate
Growth (%) (fixed and Latest HDI ranking 90/188
target) system
floating)
GDP or GNI per capita 15,400 Income inequality HDI
6m =4.35 N/A
(US $, at PPP) Policy interest rate adjustment
1-5y = 4.75
5+y = 4.90
Inflation (%) 2% (rising) Gender inequality HDI
Member of a China-ASEAN 37/188
ranking
Unemployment rate Regional Trade FTA
4% Agreement RCEP
(% of labour force) % of population living in
6.5%
Current account extreme poverty
Fiscal balance 1.8%
-3.8% balance (% of GDP)
(% of GDP) Life Expectancy at birth
Main corporate tax 76 years
25% (years)
Govt debt (% of GDP) 41% rate (Per Cent)
Gini coefficient (Latest
Competitiveness 0.49
3.95% yield 27/144 published estimate)
Yield on 10-Yr Govt rank
on Euro
Bonds (Per Cent)
Bond Corruption Inward FDI (% of GDP) 1.5%
79/185
Perception Ranking
Investment
44.2% Ease of Doing Remittances (% of GDP) 0.3%
(% of GDP) 78/189
Business Ranking
Gross national savings External Debt Aid (% of GDP) -0.003
46.5% 13%
(% of GDP) (% of GDP)
 Economic Growth and Development in Egypt
Key Macro Data (2015 or latest) Background Information
Aspects of Development
Latest annual GDP 4.3% Egyptian
Growth (%) Currency unit
Pound Latest HDI ranking 111/188
GDP or GNI per capita 11,110 Free
Exchange rate system floating HDI score
(US $, at PPP) Income inequality HDI
exchange falls
adjustment
29.9%
Inflation (%) 26% (rising) Policy interest rate 18.75
GAFTA Gender inequality HDI
135/188
Unemployment rate ranking
12.4% Member of a Regional COMESA
(% of labour force)
Trade Agreement EY-EU % of population living in
Fiscal balance 28.8%
-12.2% extreme poverty
(% of GDP) Current account
-5.9 Life Expectancy at birth 72.7
balance (% of GDP)
Govt debt (% of GDP) 92.3% (years) years
Main corporate tax rate
22.5%
16% yield (Per Cent) Gini coefficient (Latest
Yield on 10-Yr Govt 0.32
on Euro published estimate)
Bonds (Per Cent) Competitiveness rank 100/144
Bond
Corruption Perception Inward FDI (% of GDP) 2.4%
Investment 108/185
16% Ranking
(% of GDP)
Remittances (% of GDP) 5%
Ease of Doing Business
Gross national savings 128/189
5.7% Ranking
(% of GDP) Aid (% of GDP) 0.8
External Debt
41%
 Contextual Background on the Chinese Economy
Economic Structure
Share of GDP by value added (% of GDP)
Primary: 8.6
Industrial: 39.8
Services: 51.6
Main export industries (+ major firms)
1/ Electrical machinery
2/ Machinery including computers
3/ Furniture, bedding, lighting etc
Key risks to sustainable growth
1/ rapid decline in fixed-asset investment, from 20-25% to
around 8% today
2/ falling productivity growth + debt problem
3/ Stubbornly high pollution levels have led to major
health issues
4/ China’s dependency on Middle Eastern Oil
Development and Growth Issues / Policies
3 factors limiting development progress
1/ Over exploitation of environment and non-renewable
resources
2/ An imbalanced economy
3/ Eroding trust in government leadership
3 policies used to improve the supply-side
1/ eliminating superfluous industrial capacity
2/ abandoning the one-child policy
3/ cutting business costs,
Long term challenges facing this country
Challenge 1: A rapidly aging population:
Challenge 2: Gender imbalance
Challenge 3: Income inequality
Challenge 4: Dependence on fossil fuels
Challenge 5: Income inequality
 Contextual Background on the Egyptian Economy
Economic Structure Development and Growth Issues / Policies
Share of GDP by value added (% of GDP) 3 factors limiting development progress
Primary: 11.93 1/ A soaring unemployment rate

Industrial: 32.89 2/ administrative corruption

Services: 55.18 3/ threat of terrorism

Main export industries (+ major firms) 3 policies used to improve the supply-side

1/ Mineral fuels including oil 1/ investing in and upgrading the supply chain network

2/ Gems, precious metals 2/ implementing a comprehensive health unit

3/ Electrical machinery, equipment
Key risks to sustainable growth
1/ Falling terms of trade as mineral fuel prices fall
2/ Closure of mines / rising unemployment
3/ Painful Economic Adjustments Will Curtail Private
Consumption
accreditation program
3/ structural adjustment reforms
Long term challenges facing this country
Challenge 1: a population growth outstripping
many economic gains
Challenge 2: Diversify out of gem mining

4/ large FDI especially in oil industry is required as well as Challenge 3: successfully reforming the structure of
loans from the IMF the economy
 Evaluating Strengths and Weaknesses for China
Competitive Strengths for china
1/ Rich natural factor endowment (iron)
2/ cheaper and readily available labour
3/ relaxed laws in general for businesses especially around
the environment.
4/ large amount of competition Nearly 300,000 foreign-
invested businesses have been established in China
5/ Functioning democracy with political stability unlike
before
Other Notes
• China lifted more people out of poverty than any other
country, lifting 800 million people out of poverty
• The private sector is the main driver of growth and
employment. Between 2010 and 2012, private sector
firms produced between two-thirds and three-
quarters of China’s GDP
• China is the second largest provider and the top
receiver of FDI
• By 2030 China is expected to be the world’s largest
economy once again
Main Weaknesses in the china Economy
1/ imbalance- dependent on exports
2/ slowing FDI
3/ large inequality
4/ ageing population
5/ lots of smog and poor care of environment
Other Useful Contextual Knowledge
• Fixed asset investment is no longer coming from the
private sector.
• Overcapacity is acting as a burden on the
government
• The services sector isn't competitive enough to make
up for lost growth elsewhere.
• China is experiencing the triple burden of
malnutrition—coexistence of hunger, undernutrition
and overnutrition:
• Environmental problems and food safety are now
among the top concerns of urban residents: Air
pollution is an increasing concern—Beijing’s pollution
index exceeded the safety threshold 19 out of 31
days in January of 2013.
 Evaluating Strengths and Weaknesses for Egypt
Competitive Strengths for Zambia
1/ Rich natural factor endowment (copper & emeralds)
2/ Young workforce
3/ Geopolitical importance ensures financial support
during crisis
4/ Revenues from transit in the Suez Canal resilient to
political turmoil
5/ structural reform should make the economy stronger
Other Notes
• Labour Intensive Public Works Program
22.1 million days of work (person/day) benefiting more
than 140,000 individuals of which 44% are female and 76%
youth.
• Informal activities are on a small scale, but, because of
the large number of informal enterprises, it is
estimated that over five million people take jobs
without contracts or social security.
• Trade has increased significantly over the past decade.
Export of goods as percentage of GDP increased from
8.2 percent in fiscal year 2002 to 17.2 percent in
2006.
Main Weaknesses in the Zambian Economy
1/ threat of terrorism
2/ Import dependency for food and fuel
3/ The legacy of a large welfare state that is difficult to
reform
4/ high unemployment and inflation
5/ politically instable
Other Useful Contextual Knowledge
• Most Egyptians currently live on about $2 a day
• The single biggest donor of Egypt is the US
government, which has provided more than USD 25
billion in economic assistance since 1975.
• Since Mubarak’s fall in 2011 however, inflation has
soared. Simultaneously, strikes have increased, and,
although some demands have been met, pay rises
have been insufficient to deal with inflation.
• Approximately 95 percent of total external debt is
public sector debt, mostly medium and long term.