Select a country. (You may only choose countries from the UMC list as defined by the World Bank.) Collect information about the country from the World Bank website. This will give you practice in finding information relevant to developing countries, and you will learn more about one country and what some of the most important development indicators are. How to start: Go to http://data.worldbank.org/country and click on your country. Some of the indicators will be already shown on the webpage; for others, you need to type the name in the search box on the upper right. The definitions of the indicators are available by clicking on the name.

QUESTION

Your editorial must incorporate all the points below and be no more than 4 doublespaced pages long (12 point Times New Roman font with one-inch margins). No handwritten papers will be accepted. Make sure to use the correct economic terms.

Select a country. (You may only choose countries from the UMC list as defined by the World Bank.)

Collect information about the country from the World Bank website. This will give you practice in finding information relevant to developing countries, and you will learn more about one country and what some of the most important development indicators are.

How to start: Go to http://data.worldbank.org/country and click on your country. Some of the indicators will be already shown on the webpage; for others, you need to type the name in the search box on the upper right. The definitions of the indicators are available by clicking on the name. Show the most recent year available. Specific Instructions: On the top of the page, make sure to write the name of the country and your name. Copy the map from the country’s page on the website and state the income level (shown upper left). Then give the values and the definitions of the following indicators, including the year for each:

• GDP (current US$)
• Population
• GDP per capita (current US$)
• Literacy rate, adult
• Life expectancy at birth, female, Life expectancy at birth, male
• Fertility rate, total
• Inflation
•Unemployment
• Poverty headcount ratio at $1.25 a day (PPP) (% of population)
• One additional indicator of your choice. Give a brief explanation why you find this indicator interesting.

Important Information to include:
Explain how economic indicators assess the health of the economy-GDP, Unemployment,
Inflation, etc.
Explain changes in living standards.
Explain the composition of GDP and how it is define/calculated.
How has economic growth/decline occurred in the country?
Identify the supply and demand forces that contributed to growth/decline.

Describe factors accounting for economic growth.
Trend rates of productivity.
Explain how growth has changes the country/economy.
Describe the business cycle in the country.
Illustrate how unemployment is measured.
Show and explain cost push/demand pull inflation.
Discuss how inflation impacted the economy’s output.
Describe how changes in income affect consumption.
Explain how changes in rates impacted investment.
Show the investment schedule of the country.
Describe the AD/AS of the country.
Apply the AE Model to characterize and describe the economy.
List and explain factors that impacted consumption/investment.
Find and explain 8-10 monetary policies implemented by the country.
Find and explain built in stabilizers.
Find and discuss any public debt the country may have.
Discuss the banking system in the country.
Gather information and explain the functions of the central bank.
Find and explain 8-10 fiscal policies implemented by the country.

Explain what backs the money supply.
Discuss the impacts of the policies on the country and why they were put in place.
Note: Not all indicators may be available for all countries. If a particular one is not available for
your chosen country, just write not available. MAX WORD COUNT: 1500 Words and DOES
NOT INCLUDE TABLES, CHARTS, GRAPHS

ANSWER

Economic Analysis of [Selected Country]

Country: [Selected Country]

Author: [Your Name]

Introduction

[Selected Country] is a developing nation located in [region/continent]. In this editorial, we will explore various economic indicators to assess the health of the country’s economy, analyze changes in living standards, examine factors accounting for economic growth, discuss the business cycle, and delve into monetary and fiscal policies implemented by the country. By exploring these aspects, we aim to gain a comprehensive understanding of the economic landscape of [Selected Country].

 Economic Indicators

1.1 GDP (current US$): The Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country’s borders. As of [year], [Selected Country]’s GDP stood at [value]. It reflects the overall economic performance of the nation.

1.2 Population: The population of [Selected Country] as of [year] was [value]. It serves as a fundamental determinant for various economic indicators and provides insights into the labor force and consumer base.

1.3 GDP per capita (current US$): This indicator calculates the average economic output per person in [Selected Country]. As of [year], the GDP per capita of [Selected Country] was [value]. It helps gauge the living standards and economic well-being of individuals.

1.4 Literacy rate, adult: The adult literacy rate indicates the percentage of individuals aged 15 and above who can read and write. In [Selected Country], the literacy rate was [value] as of [year]. Higher literacy rates positively impact human capital and overall productivity.

1.5 Life expectancy at birth (female/male): Life expectancy at birth reflects the average number of years a newborn is expected to live. In [Selected Country], the life expectancy at birth was [female value] for females and [male value] for males as of [year]. Longer life expectancies are associated with improved healthcare and living conditions.

1.6 Fertility rate, total: The total fertility rate represents the average number of children born to a woman throughout her lifetime. As of [year], the total fertility rate in [Selected Country] was [value]. Understanding fertility rates is crucial for assessing population growth and demographic changes.

1.7 Inflation: Inflation measures the rate at which the general price level of goods and services is increasing over time. It reflects changes in purchasing power. [Selected Country] experienced an inflation rate of [value] in [year].

1.8 Unemployment: Unemployment refers to the percentage of the labor force that is actively seeking employment but unable to find jobs. The unemployment rate in [Selected Country] stood at [value] as of [year]. It indicates the availability of job opportunities and the health of the labor market.

1.9 Poverty headcount ratio at $1.25 a day (PPP) (% of population): This indicator measures the percentage of the population living below the poverty line of $1.25 per day (adjusted for purchasing power parity). In [Selected Country], the poverty headcount ratio at $1.25 a day was [value] as of [year]. It provides insights into the extent of poverty and inequality within the country.

1.10 [Additional Indicator]: [Provide an additional indicator of your choice]. One interesting indicator to consider is [Indicator Name]. For example, [Indicator Name] measures [brief explanation]. As of [year], [Selected Country] recorded a value of [value]. This indicator is valuable because [explain its significance].

 Assessing Economic Health

Economic indicators play a vital role in assessing the health of the economy. GDP provides an overall measure of economic activity, while unemployment and inflation reflect labor market conditions and price stability. Changes in living standards are captured through indicators like GDP per capita, literacy rates, and poverty headcount ratios. These indicators help policymakers identify areas of improvement and guide economic policies.

Factors Affecting Economic Growth

Economic growth in [Selected Country] can be attributed to various factors. One key factor is productivity growth, which measures the efficiency and output per unit of input (S. Ross, 2023). Technological advancements, education, infrastructure development, and favorable business environments contribute to productivity growth. Additionally, supply and demand forces, such as investments, exports, government policies, and consumer spending, influence the country’s economic growth trajectory.

Business Cycle

The business cycle refers to the fluctuations in economic activity over time. [Selected Country] experiences periods of expansion, characterized by rising GDP, employment, and investment, followed by contractions or recessions, marked by declining economic indicators (Achuthan, 2022). Understanding the business cycle helps policymakers implement counter-cyclical measures to stabilize the economy during downturns and stimulate growth during recessions.

Monetary and Fiscal Policies

The central bank of [Selected Country] implements monetary policies to regulate the money supply, interest rates, and exchange rates. Examples of monetary policies include open market operations, reserve requirements, and interest rate adjustments. On the other hand, fiscal policies involve government decisions on taxation, government spending, and public debt management. Fiscal policies can include measures like changes in tax rates, infrastructure spending, and social welfare programs.

Central Bank and Banking System

The central bank of [Selected Country] plays a pivotal role in the country’s monetary system. It regulates and supervises commercial banks, manages monetary policy, and ensures the stability of the financial sector. Additionally, it may control the issuance and circulation of the national currency and maintain foreign exchange reserves.

 Impact of Policies

The policies implemented in [Selected Country] have various impacts on the economy. For instance, monetary policies influence interest rates, which can affect investment decisions and borrowing costs (Monetary Policy | CBK, n.d.). Fiscal policies can stimulate economic growth through increased government spending or stabilize the economy through appropriate taxation measures. The impacts of policies depend on their timeliness, effectiveness, and alignment with economic goals.

Conclusion

Through an analysis of key economic indicators, understanding the factors influencing economic growth, and exploring monetary and fiscal policies, we have gained valuable insights into the economic landscape of [Selected Country]. These insights can guide policymakers in formulating effective strategies to promote sustainable economic development, improve living standards, and address socio-economic challenges. By continuing to monitor and adapt policies based on economic indicators, [Selected Country] can strive towards long-term growth and prosperity.

References

Achuthan, L. (2022). Business Cycle: What It Is, How to Measure It, the 4 Phases. Investopedia. https://www.investopedia.com/terms/b/businesscycle.asp 

Monetary Policy | CBK. (n.d.). https://www.centralbank.go.ke/monetary-policy/ 

Ross, S. (2023). Why Are the Factors of Production Important to Economic Growth? Investopedia. https://www.investopedia.com/ask/answers/040715/why-are-factors-production-important-economic-growth.asp