inflation rate of different country project report

8/14/2019 INFLATION Rate of Different Country PROJECT Report

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AN ASSIGNMENT OF ADVANCE FINANCIAL

MANAGEMENT ON:

CLASS: TYBBA 6TH SEM

DIVISION: A

GROUP MEMBERS: ROLL NO.

BADI KIFAYAT . 01

BALDHA NITIN M. 02

BHATT KRUTARTH Y. 03

BHATT POOJAN 04

CHANDGADIYA RAKESH 05

CHAUDHARI VIREN A. 06

DOSHI DHAVAL 07

GANDHI NIKUNJ 08

SUBMITTED TO,

VARSHA MADAM


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GROSS DOMESTIC PRODUCT

WHAT IS GDP?

The Gross Domestic Product or GDP is a measure of all of the services and

goods produced in a country over a specific period, classically a year. The GDP

considers the market value of goods and services to arrive at a number which is

used to judge the growth rate of the economy and the overall economic health of

the nation concerned. As an economic measure, the GDP can be a very useful

yardstick, but it has some serious flaws which have led some people to propose

the use of alternate measures of economic and social well being.

Calculating GDP

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G)

and Net Exports (X - M). Y = C + I + G + (X M)

C (consumption) is normally the largest GDP component, consisting of

private household expenditures in the economy.

I (investment) includes business investment in plant, equipment,

inventory, and structures, and does not include exchanges of existing

assets.

G (government spending) is the sum of government expenditures onfinal goods and services. It includes salaries of public servants, purchase

of weapons for the military, and any investment expenditure by a

government.

X (exports) represents gross exports. GDP captures the amount a

country produces, including goods and services produced for other

nations' consumption, therefore exports are added.

M (imports) represents gross imports. Imports are subtracted since

imported goods will be included in the terms G, I, orC, and must be

deducted to avoid counting foreign supply as domestic.


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India Gross Domestic Product (GDP)

India Gross Domestic Product (GDP) chart, historical data, forecast and news.

India Gross Domestic Product (GDP) expanded 7.90% over the last 4

quarters. The India Gross Domestic Product is worth 1217 billion dollars or

1.96% of the world economy, according to the World Bank. India's diverse

economy encompasses traditional village farming, modern agriculture,

handicrafts, a wide range of modern industries, and a multitude of services.

Services are the major source of economic growth, accounting for more

than half of India's output with less than one third of its labor force. The

economy has posted an average growth rate of more than 7% in the

decade since 1997, reducing poverty by about 10 percentage points.

Year Value

2008 1217.49

2007 1176.89

2006 914.89

2005 810.15

2004 700.92

2003 599.46

2002 507.19

2001 477.85

2000 460.18

1999 450.48


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Brazil Gross Domestic Product (GDP)

Brazil Gross Domestic Product (GDP) chart, historical data, forecast and news.

Brazil Gross Domestic Product (GDP) contracted 1.22% over the last 4

quarters. The Brazil Gross Domestic Product is worth 1613 billion dollars or

2.60% of the world economy, according to the World Bank. Brazil is one of

the fastest growing emerging economies in the world. With large and

growing agricultural, mining, manufacturing and service sectors, Brazil

economy ranks highest among all the South American countries and it has

also acquired a strong position in global economy.

Year Value

2008 1612.54

2007 1333.27

2006 1089.06

2005 882.19

2004 663.76

2003 552.47

2002 504.22

2001 553.58

2000 644.70

1999 586.86


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China Gross Domestic Product (GDP)

China Gross Domestic Product (GDP) chart, historical data, forecast and news.

China Gross Domestic Product (GDP) expanded 10.70% over the last 4

quarters. The China Gross Domestic Product is worth 4326 billion dollars or

6.98% of the world economy, according to the World Bank. China's

economy is the second largest in the world after that of the United States.

During the past 30 years China's economy has changed from a centrally

planned system that was largely closed to international trade to a more

market-oriented that has a rapidly growing private sector. A major

component supporting China's rapid economic growth has been exports

growth.

Year Value

2008 4326.19

2007 3382.27

2006 2657.88

2005 2235.91

2004 1931.642003 1640.96

2002 1453.83

2001 1324.81

2000 1198.48

1999 1083.28


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Hong Kong Gross Domestic Product (GDP)

Hong Kong Gross Domestic Product (GDP) chart, historical data, forecast and

news. Hong Kong Gross Domestic Product (GDP) contracted 2.40% over

the last 4 quarters. The Hong Kong Gross Domestic Product is worth 215

billion dollars or 0.35% of the world economy, according to the World Bank.

Hong Kong along with Singapore, South Korea and Taiwan is one of the

Four Asian Tigers. Hong Kong has a free market economy highly

dependent on international trade and finance, which has left it heavily

exposed to the global economic slowdown that began in 2008. The total

value of goods and services trade, including the sizable share of re-exports,

is equivalent to more than 400% of GDP.

Year Value

2008 215.36

2007 207.07

2006 189.93

2005 177.77

2004 165.89

2003 158.57

2002 163.78

2001 166.59

2000 169.12


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1999 163.28

Singapore Gross Domestic Product (GDP)

Singapore Gross Domestic Product (GDP) chart, historical data, forecast and

news. Singapore Gross Domestic Product (GDP) expanded 3.50% over the

last 4 quarters. The Singapore Gross Domestic Product is worth 182 billion

dollars or 0.29% of the world economy, according to the World Bank.

Singapore along with Hong Kong, South Korea and Taiwan is one of the

Four Asian Tigers. Singapore has a highly developed and successful free-

market economy. It enjoys a per capita GDP higher than that of most

developed countries. The economy depends heavily on exports, particularly

in consumer electronics, information technology products, pharmaceuticals,

and on a growing service sector.

Year Value

2008 181.95

2007 166.95


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2006 139.18

2005 120.94

2004 109.66

2003 93.21

2002 88.33

2001 85.66

2000 92.72

1999 82.61

UNEMPOYMENT

Unemployment occurs when a person is available and willing to work but

currently without work. The prevalence of unemployment is usually measured

using the unemployment rate, which is defined as the percentage of those in the

labor force who are unemployed.Unemployment refers to the inability for willing

workers to find gainful employment. The degree of unemployment in a nation is

one indicator of the economic health of the country. Many factors can negatively

affect the unemployment rate including corporate downsizing, mergers,

implementation of automation technologies, and job outsourcing to other nations.

Some argue illegal immigration impacts the unemployment rate, though critics ofthis viewpoint counter that jobs held by illegal are generally low paying or

undesirable.

In the United States, workers pay into unemployment insurance through a

deduction or unemployment tax that comes out of every check. Benefits can then

be paid to the unemployed person for a period of time to help with bills, food and

other expenses. During this time an unemployment advisor meets with the

candidate and supplies him or her with job leads. The candidate is also expected

to make personal efforts to find work, such as checking the daily newspaper or

looking at online employment hubs.

Types of unemployment


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Frictional unemployment

Frictional unemployment occurs when a worker moves from one job to another.

While he searches for a job he is experiencing frictional unemployment.

Classical unemployment

Classical or real-wage unemployment occurs when real wages for a job are set

above the market-clearing level, causing the number of job-seekers to exceed

the number of vacancies.

Cyclical or Keynesian unemployment

Cyclical or Keynesian unemployment, also known as demand deficient

unemployment, occurs when there is not enough aggregate demand in the

economy.

Structural unemployment

Structural unemployment is caused by a mismatch between jobs offered by

employees and potential workers. This may pertain to geographical location, skill

variation, and many other factors.

Long-term unemployment

This is normally defined, for instance in European Union statistics, asunemployment lasting for longer than one year. It is an important indicator of

social exclusion.

Hidden unemployment

Hidden, or covered, unemployment is the unemployment of potential workers that

is not reflected in official unemployment statistics, due to the way the statistics

are collected.

Measurement

Though many people care about the number of unemployed, economists

typically focus on the unemployment rate. This corrects for the normal increase in

the number of people employed due to increases in population and increases in


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the labor force relative to the population. The unemployment rate is expressed as

a percentage, and is calculated as follows:

India Unemployment Rate

India unemployment rate stands at 6.80 percent of the labor force. The labour

force is defined as the number of people employed plus the number

unemployed but seeking work. The nonlabour force includes those who are

not looking for work, those who are institutionalized and those serving in the

military. India's diverse economy encompasses traditional village farming,

modern agriculture, handicrafts, a wide range of modern industries, and a

multitude of services. Services are the major source of economic growth,

accounting for more than half of India's output with less than one third of its

labor force. The economy has posted an average growth rate of more than

7% in the decade since 1997, reducing poverty by about 10 percentage

points. This page includes: India Unemployment Rate chart, historical data,

forecast and news.

Value

0

2

4

6

8

10

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value

2009 6.80


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2008 7.20

2007 7.80

2006 8.90

2005 9.20

2004 9.50

2003 8.80

2002 8.34

2001 7.86

2000 7.32

Brazil Unemployment Rate

Brazil unemployment rate stands at 6.80 percent of the labor force. The labour



not looking for work, those who are institutionalised and those serving in the

military. Brazil is one of the fastest growing emerging economies in the

world. With large and growing agricultural, mining, manufacturing and

service sectors, Brazil economy ranks highest among all the South

American countries and it has also acquired a strong position in global

economy. This page includes: Brazil Unemployment Rate chart, historical

data, forecast and news.

Value

0

2

4

6

8

10

12

14

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value

2009 8.08

2008 7.66


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2007 9.34

2006 8.9

2005 10

2004 10.66

2003 10.61

2002 12.36

2001 11.69

2000 11.66

China Unemployment Rate

China unemployment rate stands at 4.30 percent of the labor force. The labour




military. China's economy is the second largest in the world after that of the

United States. During the past 30 years China's economy has changed

from a centrally planned system that was largely closed to international

trade to a more market-oriented that has a rapidly growing private sector. A

major component supporting China's rapid economic growth has beenexports growth. This page includes: China Unemployment Rate chart,

historical data, forecast and news.

Value

3.5

3.6

3.7

3.8

3.9

4

4.1

4.2

4.3

4.4

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value


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2009 4.3

2008 4.05

2007 4.05

2006 4.15

2005 4.2

2004 4.25

2003 4.18

2002 3.95

2001 3.8

2000 3.9

Hong Kong Unemployment Rate

Hong Kong unemployment rate stands at 4.90 percent of the labor force. The

labour force is defined as the number of people employed plus the number



military. Hong Kong along with Singapore, South Korea and Taiwan is one

of the Four Asian Tigers. Hong Kong has a free market economy highly

dependent on international trade and finance, which has left it heavily

exposed to the global economic slowdown that began in 2008. The totalvalue of goods and services trade, including the sizable share of re-exports,

is equivalent to more than 400% of GDP. This page includes: Hong Kong

Unemployment Rate chart, historical data, forecast and news.

Value

0

1

2

3

4

5

6

7

8

9

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value


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Year Value

2009 5.18

2008 3.44

2007 4.11

2006 4.83

2005 5.7

2004 7.94

2003 7.94

2002 7.23

2001 4.56

2000 5.11

Singapore Unemployment Rate

Singapore unemployment rate stands at 2.10 percent of the labor force. The

labour force is defined as the number of people employed plus the number



military. Singapore along with Hong Kong, South Korea and Taiwan is one

of the Four Asian Tigers. Singapore has a highly developed and successful

free-market economy. It enjoys a per capita GDP higher than that of most

developed countries. The economy depends heavily on exports, particularlyin consumer electronics, information technology products, pharmaceuticals,

and on a growing service sector. This page includes: Singapore

Unemployment Rate chart, historical data, forecast and news.

Value

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value


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Year Value

2009 3.03

2008 2.23

2007 2.13

2006 2.65

2005 3.13

2004 3.35

2003 4

2002 3.55

2001 2.63

2000 2.63

INFLATION

MEANING

The term "inflation" usually refers to a measured rise in a broad price

index that represents the overall level of prices in goods and services in the

economy.

In economics, inflation is a rise in the general level of prices of goods and

services in an economy over a period of time.(In practice, the term monetary

inflation is used to specifically refer to an increase in the money supply.) When

the price level rises, each unit of currency buys fewer goods and services;

consequently, inflation is also erosion in the purchasing power of money a loss

of real value in the internal medium of exchange and unit of account in the

economy. A chief measure of price inflation is the inflation rate, the annualized

percentage change in a general price index (normally the Consumer Price Index)

over time.

The value of a dollar does not stay constant when there is inflation. The

value of a dollar is observed in terms of purchasing power, which is the real,

tangible goods that money can buy. When inflation goes up, there is a decline inthe purchasing power of money.

CALCULATION

Inflation is usually estimated by calculating the inflation rate of a price index,

usually the Consumer Price Index. The Consumer Price Index measures prices


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of a selection of goods and services purchased by a "typical consumer". The

inflation rate is the percentage rate of change of a price index over time.

INFLATION RATE= (NEW CPI OLD CPI) * 100

OLD CPI

Where, CPI stands for CONSUMER PRICE INDEX

For instance, in January 2007, the U.S. Consumer Price Index was 202.416, andin January 2008 it was 211.080. The formula for calculating the annualpercentage rate inflation in the CPI over the course of 2007 is

Controlling inflation

A variety of methods have been used in attempts to control inflation.

Monetary policy

Today the primary tool for controlling inflation is monetary policy. Most central

banks are tasked with keeping the federal funds lending rate at a low level,

normally to a target rate around 2% to 3% per annum, and within a targeted low

inflation range, somewhere from about 2% to 6% per annum. A low positive

inflation is usually targeted, as deflationary conditions are seen as dangerous for

the health of the economy.

Fixed exchange rates

Under a fixed exchange rate currency regime, a country's currency is tied in

value to another single currency or to a basket of other currencies (or sometimes

to another measure of value, such as gold). A fixed exchange rate is usually

used to stabilize the value of a currency, vis-a-vis the currency it is pegged to. It

can also be used as a means to control inflation. However, as the value of the

reference currency rises and falls, so does the currency pegged to it. This

essentially means that the inflation rate in the fixed exchange rate country is

determined by the inflation rate of the country the currency is pegged to. In


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addition, a fixed exchange rate prevents a government from using domestic

monetary policy in order to achieve macroeconomic stability.

Gold standard

The gold standard is a monetary system in which a region's common media of

exchange are paper notes that are normally freely convertible into pre-set, fixed

quantities of gold.

The gold standard was partially abandoned via the international adoption of the

Bretton Woods System. Under this system all other major currencies were tied at

fixed rates to the dollar, which itself was tied to gold at the rate of $35 per ounce.

The Bretton Woods system broke down in 1971, causing most countries to

switch to fiat money money backed only by the laws of the country. Austrianeconomists strongly favor a return to a 100 percent gold standard.

Wage and price controls

In general wage and price controls are regarded as a temporary and exceptional

measure, only effective when coupled with policies designed to reduce the

underlying causes of inflation during the wage and price control regime, for

example, winning the war being fought. They often have perverse effects, due tothe distorted signals they send to the market. Artificially low prices often cause

rationing and shortages and discourage future investment, resulting in yet further

shortages. The usual economic analysis is that any product or service that is

under-priced is over consumed. For example, if the official price of bread is too

low, there will be too little bread at official prices, and too little investment in

bread making by the market to satisfy future needs, thereby exacerbating the

problem in the long term.

Cost-of-living allowance

The real purchasing-power of fixed payments is eroded by inflation unless they

are inflation-adjusted to keep their real values constant. In many countries,

employment contracts, pension benefits, and government entitlements (such as

social security) are tied to a cost-of-living index, typically to the consumer price


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index. A cost-of-living allowance (COLA) adjusts salaries based on changes in a

cost-of-living index. Salaries are typically adjusted annually. They may also be

tied to a cost-of-living index that varies by geographic location if the employee

moves.

India Inflation Rate

India inflation rate stands at 14.97 percent year-over-year. Inflation rate refers to

a general rise in prices measured against a standard level of purchasing

power. The most well known measures of Inflation are the CPI which

measures consumer prices, and the GDP deflator, which measures inflation

in the whole of the domestic economy. India's diverse economy

encompasses traditional village farming, modern agriculture, handicrafts, a

wide range of modern industries, and a multitude of services. Services are

the major source of economic growth, accounting for more than half ofIndia's output with less than one third of its labor force. The economy has

posted an average growth rate of more than 7% in the decade since 1997,

reducing poverty by about 10 percentage points. This page includes: India

Inflation Rate chart, historical data, forecast and news.


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Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2009 10.45 9.63 8.03 8.70 8.63 9.29 11.89 11.72 11.64 11.49 13.51 14.97

2008 5.51 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 10.45 10.45 9.70

2007 6.72 7.56 6.72 6.67 6.61 5.69 6.45 7.26 6.40 5.51 5.51 5.51

2006 4.39 5.31 5.31 5.26 6.14 7.89 6.90 5.98 6.84 7.63 6.72 6.72

2005 4.59 3.67 3.67 4.59 3.64 2.70 3.57 3.54 3.54 3.51 5.31 5.31

2004 4.81 3.81 3.81 2.83 2.80 3.74 3.70 4.63 4.63 4.59 3.67 4.63

2003 2.97 3.96 3.96 4.95 4.90 3.88 3.85 2.86 2.86 3.81 2.83 2.86

2002 5.21 5.21 5.21 4.12 5.15 4.04 4.00 3.96 5.00 3.96 3.92 3.96

2001 3.23 3.23 2.13 2.11 2.11 4.21 4.17 5.21 4.17 4.12 5.15 5.21

2000 2.20 3.33 5.62 5.56 5.56 4.40 4.35 4.35 3.23 3.19 2.11 3.23

Brazil Inflation Rate

Brazil inflation rate stands at 4.59 percent year-over-year. Inflation rate refers to




in the whole of the domestic economy. Brazil is one of the fastest growing

emerging economies in the world. With large and growing agricultural,

mining, manufacturing and service sectors, Brazil economy ranks highest

among all the South American countries and it has also acquired a strong

position in global economy. This page includes: Brazil Inflation Rate chart,

historical data, forecast and news.


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2009 5.84 5.90 5.61 5.53 5.20 4.80 4.50 4.36 4.34 4.17 4.22 4.31

2008 4.56 4.61 4.73 5.04 5.58 6.06 6.37 6.17 6.25 6.41 6.39 5.90

2007 2.99 3.02 2.96 3.00 3.18 3.69 3.74 4.18 4.15 4.12 4.19 4.46

2006 5.70 5.51 5.32 4.63 4.23 4.03 3.97 3.84 3.70 3.26 3.02 3.14

2005 7.41 7.39 7.54 8.07 8.05 7.27 6.57 6.02 6.04 6.36 6.22 5.69

2004 7.71 6.69 5.98 5.26 5.15 6.06 6.81 7.18 6.70 6.86 7.24 7.60

2003 14.47 15.85 16.57 16.77 17.24 16.57 15.43 15.07 15.14 13.98 11.02 9.30

2002 7.62 7.51 7.75 7.98 7.77 7.66 7.51 7.46 7.93 8.45 10.93 12.53

2001 5.92 6.27 6.44 6.61 7.04 7.35 7.05 6.41 6.46 7.19 7.61 7.67

2000 8.85 7.86 6.92 6.77 6.47 6.51 7.06 7.86 7.77 6.65 5.99 5.97

China Inflation Rate

China inflation rate stands at 1.90 percent year-over-year. Inflation rate refers to




in the whole of the domestic economy. China's economy is the second

largest in the world after that of the United States. During the past 30 years

China's economy has changed from a centrally planned system that was

largely closed to international trade to a more market-oriented that has a

rapidly growing private sector. A major component supporting China's rapid


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economic growth has been exports growth. This page includes: China

Inflation Rate chart, historical data, forecast and news.


2009 1.00 -1.60 -1.20 -1.50 -1.40 -1.70 -1.80 -1.20 -0.80 -0.50 0.60 1.90

2008 7.10 8.70 8.30 8.50 7.70 7.10 6.30 4.90 4.60 4.00 2.40 1.20

2007 2.20 2.70 3.30 3.00 3.40 4.40 5.60 6.50 6.20 6.50 6.90 6.50

2006 1.90 0.90 0.80 1.20 1.40 1.50 1.00 1.30 1.50 1.40 1.90 2.80

2005 1.90 3.90 2.70 1.80 1.80 1.60 1.80 1.30 0.90 1.20 1.30 1.60

2004 3.20 2.10 3.00 3.80 4.40 5.00 5.30 5.30 5.20 4.30 2.80 2.40

2003 0.40 0.20 0.90 1.00 0.70 0.30 0.50 0.90 1.10 1.80 3.00 3.20

2002 -1.00 0.00 -0.80 -1.30 -1.10 -0.80 -0.90 -0.70 -0.70 -0.80 -0.70 -0.40

2001 1.20 0.00 0.80 1.60 1.70 1.40 1.50 1.00 -0.10 0.20 -0.30 -0.30

2000 -0.20 0.70 -0.20 -0.30 0.10 0.50 0.50 0.30 0.00 0.00 1.30 1.50

Hong Kong Inflation Rate

Hong Kong inflation rate stands at 1.30 percent year-over-year. Inflation rate

refers to a general rise in prices measured against a standard level of

purchasing power. The most well known measures of Inflation are the CPI

which measures consumer prices, and the GDP deflator, which measuresinflation in the whole of the domestic economy. Hong Kong along with

Singapore, South Korea and Taiwan is one of the Four Asian Tigers. Hong

Kong has a free market economy highly dependent on international trade

and finance, which has left it heavily exposed to the global economic

slowdown that began in 2008. The total value of goods and services trade,


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including the sizable share of re-exports, is equivalent to more than 400%

of GDP. This page includes: Hong Kong Inflation Rate chart, historical data,

forecast and news.


2009 3.10 0.80 1.20 0.60 0.00 -0.90 -1.50 -1.60 0.50 2.20 0.50 1.30

2008 3.20 6.30 4.20 5.40 5.70 6.10 6.30 4.60 3.00 1.80 3.10 2.10

2007 2.00 0.80 2.40 1.30 1.20 1.30 1.50 1.60 1.60 3.20 3.40 3.80

2006 1.90 1.60 1.60 1.90 2.10 2.20 2.30 2.50 2.10 2.00 2.20 2.30

2005 -0.50 0.80 0.80 0.50 0.80 1.20 1.30 1.40 1.60 1.30 1.20 1.30

2004 -1.50 -2.00 -2.10 -1.50 -0.90 -0.10 0.90 0.80 0.70 0.20 0.20 0.20

2003 -1.60 -2.00 -2.10 -1.80 -2.50 -3.10 -4.00 -3.80 -3.20 -2.70 -2.40 -1.90

2002 -3.50 -2.30 -2.20 -3.10 -3.10 -3.30 -3.40 -3.30 -3.70 -3.60 -3.60 -1.50

2001 -1.50 -2.40 -1.90 -1.40 -1.50 -1.10 -0.90 -1.10 -1.20 -1.20 -1.40 -3.60

2000 -5.30 -5.10 -5.00 -4.40 -4.50 -4.50 -3.20 -2.70 -2.60 -3.10 -2.30 -2.10

Singapore Inflation Rate

Singapore inflation rate stands at 0.00 percent year-over-year. Inflation rate

refers to a general rise in prices measured against a standard level of

purchasing power. The most well known measures of Inflation are the CPIwhich measures consumer prices, and the GDP deflator, which measures

inflation in the whole of the domestic economy. Singapore along with Hong

Kong, South Korea and Taiwan is one of the Four Asian Tigers. Singapore

has a highly developed and successful free-market economy. It enjoys a

per capita GDP higher than that of most developed countries. The economy


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depends heavily on exports, particularly in consumer electronics,

information technology products, pharmaceuticals, and on a growing

service sector. This page includes: Singapore Inflation Rate chart, historical

data, forecast and news.


2009 2.90 1.90 1.60 -0.70 -0.30 -0.50 -0.50 -0.30 -0.40 -0.80 -0.20 0.00

2008 6.60 6.50 6.70 7.50 7.50 7.50 6.50 6.40 6.70 6.40 5.50 4.30

2007 0.30 0.60 0.70 0.60 1.00 1.30 2.60 2.90 2.70 3.60 4.20 4.40

2006 1.70 1.20 1.20 1.10 1.10 1.40 1.10 0.70 0.40 0.40 0.50 0.80

2005 0.40 0.00 0.40 0.40 0.00 -0.20 0.10 0.70 0.60 1.10 1.00 1.30

2004 0.70 2.00 1.00 1.50 2.40 1.90 2.00 1.80 1.90 1.90 1.80 1.30

2003 0.90 0.40 0.80 0.90 -0.10 -0.30 0.30 0.40 0.70 0.60 0.60 0.70

2002 -1.10 -0.60 -0.90 -1.10 -0.30 0.10 -0.40 -0.40 -0.40 -0.20 0.20 0.40

2001 2.00 1.30 1.80 2.00 1.90 1.20 1.30 0.70 0.50 0.20 -0.20 -0.60

2000 0.90 1.30 1.20 1.10 0.50 0.80 1.20 1.60 1.70 1.80 2.00 2.10

STOCK MARKET

A stock market is a public market (a loose network of economic

transactions not a physical facility or discrete entity) for the trading of company

stock and derivatives at an agreed price; these are securities listed on a stock

exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion

US at the beginning of October 2008. The stocks are listed and traded on stock

exchanges which are entities of a corporation or mutual organization specialized

in the business of bringing buyers and sellers of the organizations to a listing of


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stocks and securities together. The stock market in the United States is NYSE

while in Canada; it is the Toronto Stock Exchange. Major European examples of

stock exchanges include the London Stock Exchange, Paris Bourse, and the

Deutsche Brse. Asian examples include the Tokyo Stock Exchange, the Hong

Kong Stock Exchange, and the Bombay Stock Exchange. In Latin America, there

are such exchanges as the BM&F Bovespa and the BMV.

Importance of stock market

1. Function and purpose

The stock market is one of the most important sources for companies to raise

money. This allows businesses to be publicly traded, or raise additional capital

for expansion by selling shares of ownership of the company in a public market.

The liquidity that an exchange provides affords investors the ability to quickly and

easily sell securities. This is an attractive feature of investing in stocks, compared

to other less liquid investments such as real estate.

2. Relation of the stock market to the modern financial system

A portion of the funds involved in saving and financing flows directly to thefinancial markets instead of being routed via the traditional bank lending and

deposit operations. Statistics show that in recent decades shares have made up

an increasingly large proportion of households' financial assets in many

countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets

with little risk made up almost 60 percent of households' financial wealth,

compared to less than 20 percent in the 2000s. The major part of this adjustment

in financial portfolios has gone directly to shares but a good deal now takes the

form of various kinds of institutional investment for groups of individuals, e.g.,

pension funds, mutual funds, hedge funds, insurance investment of premiums,

etc. The trend towards forms of saving with a higher risk has been accentuated

by new rules for most funds and insurance, permitting a higher proportion of

shares to bonds.


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3. United States Stock Market Returns

Over a sixty-year period, for year ended 2009, on a Total Return Basis, the S&P

500 Index year-to-year grew at an average annualized rate of 9.2%; on a

compounded basis an average annualized rate of 5.6%.

4. The behavior of the stock market

From experience we know that investors may 'temporarily' move financial prices

away from their long term aggregate price 'trends'. (Positive or up trends are

referred to as bull markets; negative or down trends are referred to as bear

markets.) Over-reactions may occurso that excessive optimism (euphoria) may

drive prices unduly high or excessive pessimism may drive prices unduly low.

New theoretical and empirical arguments have since been put forward againstthe notion that financial markets are 'generally' efficient (i.e., in the sense that

stock prices in the aggregate tend to follow a Gaussian distribution).

5. Irrational behavior

Sometimes the market seems to react irrationally to economic or financial news,

even if that news is likely to have no real effect on the technical value of

securities itself. But this may be more apparent than real, since often such news

has been anticipated, and a counter reaction may occur if the news is better (or

worse) than expected. Therefore, the stock market may be swayed in either

direction by press releases, rumors, euphoria and mass panic; but generally only

briefly, as more experienced investors (especially the hedge funds) quickly rally

to take advantage of even the slightest, momentary hysteria.

6. Crashes

A stock market crash is often defined as a sharp dip in share prices of equities

listed on the stock exchanges. In parallel with various economic factors, a reason

for stock market crashes is also due to panic and investing public's loss of

confidence. Often, stock market crashes end speculative economic bubbles.

There have been a number of famous stock market crashes like the Wall Street


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Crash of 1929, the stock market crash of 19734, the Black Monday of 1987, the

Dot-com bubble of 2000, and the Stock Market Crash of 2008.

India Stock Market Chart (BSE SENSEX 30)

India Stock Market Chart (BSE SENSEX 30) historical data, forecast and news.

The combined size of stock markets around the world was estimated atabout $36.6 trillion USD at the beginning of October 2008. The New York

Stock Exchange (NYSE) is the largest stock exchange in the world by dollar

volume and has 2,764 listed securities.


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20101629

0

1579

1

2009 8674 8822 8160 9902 1168

3

1426

6

1340

0

1478

5

1539

8

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1540

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0

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8

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1627

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1257

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2004 5594 5567 5365 5655 4505 4644 4844 5034 5199 5581 5704 6228

2003 3220 3223 3049 2924 2943 3182 3554 3742 4134 4455 4771 5132

2002 3246 3312 3459 3301 3114 3161 2988 2950 2991 2834 2948 3207

2001 3955 4070 3541 3184 3494 3319 3252 3245 2600 2755 3014 3132

2000 5447 5001 4511 3920 4325 4188 4186 4032 3594 3789 3827

Brazil Stock Market Chart (BRAZIL BOVESPA STOCK IDX)

Brazil Stock Market Chart (BRAZIL BOVESPA STOCK IDX) historical data,

forecast and news. The combined size of stock markets around the world


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was estimated at about $36.6 trillion USD at the beginning of October 2008.

The New York Stock Exchange (NYSE) is the largest stock exchange in the

world by dollar volume and has 2,764 listed securities.


20106507

0

6276

3

20093727

2

3818

0

3623

5

4197

6

4867

9

4949

5

4887

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29/37

China Stock Market Chart (SHANGHAI SE COMPOSITE IX)

China Stock Market Chart (SHANGHAI SE COMPOSITE IX) historical data,forecast and news. The combined size of stock markets around the world

was estimated at about $36.6 trillion USD at the beginning of October 2008.

The New York Stock Exchange (NYSE) is the largest stock exchange in the

world by dollar volume and has 2,764 listed securities.


2010 2987 2935

2009 1863 2012 2071 2347 2560 2721 3008 2668 2684 2894 3077 3051

2008 4383 4193 3411 3095 3365 2736 2652 2320 1896 1720 1707 1821

2007 2641 2613 2785 3253 3899 3670 3616 4301 5114 5562 4803 4836

2006 1181 1267 1245 1319 1497 1531 1613 1547 1637 1759 1851 2094

2005 1192 1189 1173 1149 1052 1014 1011 1089 1132 1081 1088 1079

2004 1517 1624 1637 1579 1518 1385 1384 1319 1260 1311 1302 1266

2003 1320 1479 1456 1487 1485 1486 1470 1416 1355 1345 1317 1433

2002 1359 1486 1503 1583 1516 1462 1652 1634 1582 1503 1371 1358

2001 2032 1907 1965 2091 2133 2163 1920 1827 1765 1521 1594 1606

2000 1595 1608 1761 1705 1895 1896 2021 1876 1903 1977 2039


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Hong Kong Stock Market Chart (HANG SENG)

Hong Kong Stock Market Chart (HANG SENG) historical data, forecast andnews. The combined size of stock markets around the world was estimated

at about $36.6 trillion USD at the beginning of October 2008. The New York




20102003

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1

Singapore Stock Market Chart (STRAITS TIMES)

Singapore Stock Market Chart (STRAITS TIMES) historical data, forecast and

news. The combined size of stock markets around the world was estimated

at about $36.6 trillion USD at the beginning of October 2008. The New York




2010 2706 2684

2009 1685 1595 1457 1702 2029 2226 2260 2523 2570 2584 2622 2771

2008 2867 2868 2793 3043 3103 2948 2831 2691 2359 1600 1614 1639

2007 2892 3034 2915 3170 3335 3415 3428 3065 3309 3606 3266 3326


32/37

2006 2290 2350 2416 2464 2338 2244 2277 2395 2448 2549 2663 2766

2005 1993 2017 2035 2017 2058 2095 2152 2218 2223 2117 2162 2233

2004 1759 1788 1760 1764 1652 1727 1785 1796 1861 1872 1902 1919

2003 1254 1232 1171 1196 1254 1355 1432 1486 1546 1605 1618 1673

2002 1639 1676 1727 1717 1669 1517 1483 1449 1312 1319 1352 1293

2001 1915 1976 1646 1567 1628 1622 1563 1573 1225 1327 1320 1489

2000 2114 2103 1983 1839 1879 2063 2070 1953 1880 1954 1941

NET EXPORT

What is EXPORT?

In economics, an export is any good or commodity, transported from one country

to another country in a legitimate fashion, typically for use in trade. Export goods

or services are provided to foreign consumers by domestic producers.

What is IMPORT?

An import is any good (e.g. a commodity) or service brought in from one country

to another country in a legitimate fashion, typically for use in trade. It is a good

that is brought in from another country for sale. Import goods or services are

provided to domestic consumers by foreign producers. An import in the receiving

country is an export to the sending country.

What Does Net Exports Mean?

The value of a country's total exports minus the value of its total imports. It is

used to calculate a country's aggregate expenditures, or GDP, in an open

economy.

In other words, net exports is the amount by which foreign spending on a home

country's goods and services exceeds the home country's spending on foreign

goods and services. For example, if foreigners buy $200 billion worth of U.S.

exports and Americans buy $150 billion worth of foreign imports in a given year,


33/37

net exports would be positive $50 billion. Factors affecting net exports include

prosperity abroad, tariffs and exchange rates.

India Exports

India Exports chart, historical data, forecast and news. Exports amount to 22%

of Indias GDP. Gems and jewelry constitute the single largest export item,

accounting for 16 percent of exports. India is also leading exporter of textile

goods, engineering goods, chemicals, leather manufactures and services.

Indias main export partners are European Union, United States, United

Arab Emirates and China.

India Imports chart, historical data, forecast and news. India is poor in oilresources and is currently heavily dependent on coal and foreign oil imports

for its energy needs. Other imported products are: machinery, gems,

fertilizers and chemicals. Main import partners are European Union, Saudi

Arabia and United States.


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Value

-300000

-250000

-200000

-150000

-100000

-50000

0

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value

2009 -278427.0

2008 -122300.0

2007 -69725.0

2006 -53096.0

2005 -43908.0

2004 -21821.0

2003 -13884.0

2002 -7484.0

2001 -6980.6

2000 -8593.9

Brazil Exports

Brazil Exports chart, historical data, forecast and news. Brazil has an export-

oriented economy, exports amount to 14% of its GDP. The main exports

are transport equipment, iron ore, soybeans, footwear, coffee, autos,

automotive parts, machinery. Brazil accounts for 25% of global exports of

raw cane and refined sugar; it is the world leader in soybean exports and is

responsible for 80% of the planets orange juice. Brazils largest exports

markets are European Union, United Sates, Argentina, China and

Venezuela.

Brazil Imports chart, historical data, forecast and news. Brazil imports

machinery, electrical and transport equipment, chemical products,


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organic chemicals. Chinas main imports partners are: Japan, European

Union, South Korea, Taiwan and ASEAN countries.

Value

0

50

100

150

200

250

300

350

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value

2009 198.0

2008 297.0

2007 261.9

2006 177.5

2005 102.1

2004 32.8

2003 25.4

2002 30.32001 23.1

2000 24.2

Singapore Exports

Singapore Export is the main source of revenue for the Singapores economy.

Singapore relays on purchasing raw goods and refining them for re-export,

such as in the wafer fabrication industry and oil refining. Singapore's

principal exports are petroleum products, food/beverages, chemicals,

textile/garments, electronic components, telecommunication apparatus,

transport equipment. Its main exports partners are Malaysia, European

Union, Hong Kong and Indonesia.

Singapore Import relays on purchasing raw goods and refining them for re-

export. Singapore's principal imports are machinery and equipment, mineral


37/37

fuels, chemicals and foodstuffs. Main import partners are Malaysia, United

States, European Union, China and Japan.

Value

0

10000

20000

30000

40000

50000

60000

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Year

Value

Year Value2009 34408.2

2008 26250.0

2007 50480.7

2006 52639.6

2005 39080.2

2004 28232.4

2003 35299.5

2002 15583.12001 10362.2

2000 5652.2

inflation rate of different country project report

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