Understanding whether an economy is getting bigger or smaller is important not only to economists but also to public- and private-sector leaders, as well as to individuals. That’s because economic growth usually indicates that people and businesses are earning and spending more and generally feelin...
This factor relies on Transparency Internationals Corruption Perceptions Index (CPI), to determine the freedom from corruption scores of countries that are also listed in the Index of Economic Freedom. The CPI is based on a 10-point scale:10 indicates very little corruption 22、 & 1 indicates ...
PPI maintains a positive upward trend, which to some extent reflects economic activity. In the period of economic recovery in the post-epidemic era, the demand for production has increased, leading to the continuous improvement of enterprise production. However, if PPI remains high due to raw mat...
The direction of causation between economic growth and defense spending is not predicted theoretically. However, there are two opposing views. First the Keynesian-type argument that changes in aggregate demand brings fluctuations in the level of income, output and employment. Aggregate demand created by...
My big fear has been that a recession in Europe will have very negative connotations for growth in the United States. (See my post, “Issue Number 1 for 2012: Recession in Europe,”link). Data released yesterday and presented by the Financial Times indicates that the unemployment rate for ...
When GDP is growing, it is a sign that economic performance is strong. Conversely, when it is shrinking, it indicates that performance is poor. However, GDP alone does not paint the full picture of economic health. Other factors such asincome distributionand the sustainability of growth are al...
However, foreign aid, gross national savings and investment have negative relationships to both Gross Domestic Product (GDP) growth and GDP. Using South Africa as benchmark, the regional performance indicates that North Africa is the best one in generating positive GDP growth from Foreign Direct ...
500 in both 2021 and 2022. The study indicates that this fragmentation of the global economy is threatening the world economy and increasing the risk of economic "decoupling" among countries. If the economy is divided into different camps, global GDP would decrease by 1.2 percentage points. If ...
Meanwhile, a widening yield spread indicates increased concern about the economy. As investors become morerisk-averse, they demand higher yields on corporate bonds to compensate for the perceived higher default risks (the weaker the broader economy is, the more companies are likely to struggle with...
A negative output gap, on the other hand, indicates a lack ofdemandfor goods and services in an economy and can lead to companies and employees operating below their maximum efficiency levels. This type of output gap points to a sluggish economy and portends a declining GDP growth rate and ...