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Assessing Economic Performance - Essay Example

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The parameters include gross domestic product (GDP), level of technological advancements, economic growth and government system. These parameters will enable this write-up to reveal…
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Assessing Economic Performance
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Assessing Economic Performance

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America has the greatest GDP globally. The American GDP is about twelve trillion dollars. America’s economy is highly diversified, and it relies on technological advancements to generate such a massive output. For a nation to generate such a GDP, it must add value to its products. A skilled labour force complements America’s enormous resources, which ensures efficient production. Similarly, India has massive resources such iron and rubber. Such natural resources have made manufacturing a key driver of this country’s economy. The enormous demography has provided ready consumption and cheap workforce. The GDP of India is about 3 trillion. The technological advancements in America have altered communication in a phenomenal manner. The advancements have transformed the manner in which the world conducts business culminating in the emergence of E-commerce. India’s technological advancement is average since most of its economy depends on manufacturing and exportation of raw materials. However, the nation is integrating the recent advancements in technology rapidly to ensure that it increases value addition in its production (Central Intelligence Agency, 2012).
America’s economy is stagnating owing to the current recession. Thus, the economy is experiencing negative growth despite the concerted efforts to stimulate it. The efforts have included stimulus packages and deficit budgets that ought to boost spending among the citizenry. The recession resulted from malpractices in the banking and insurance sector that culminated in failure of numerous firms. Conversely, India’s economy is performing strongly despite the receding global economy. This owes to local consumption and adoption of appropriate policies. The astute policies have provided an appropriate platform for the ...Download file to see next pagesRead More
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