9. Fundamental Concepts of Macroeconomics

1. Objectives and Methods of Macroeconomics2. Economic Growth3. National Accounting

9.2 Economic Growth

Country 2007 2008 2009 2010

China 14.199 9.599 9.220 10.328

India 9.991 6.186 6.771 10.094

Brazil 6.091 5.162 -0.645 7.490

Germany 3.394 0.809 -5.078 3.562

Luxembourg 6.639 1.440 -3.639 3.516

Canada 2.200 0.689 -2.770 3.215

USA 1.913 -0.337 -3.486 3.030

South Africa 5.568 3.576 -1.682 2.841

Australia 4.570 2.585 1.374 2.683

U.K. 2.685 -0.065 -4.875 1.354

Table 9.1 GDP, Constant Prices (National Currency),Annual Percentage Change, 2007-2010 (see IMF 2011)

Productive Capacity

t

G D P r

G D P (t)r

m ax

G D P (t)r

n

G D P (t)r

Fig. 9.1 Development and Utilization of Productive Capacity over Time

Output Gap

Country 2007 2008 2009 2010

Australia 0.994 0.839 -0.339 -0.187

Canada 1.682 0.231 -3.967 -2.425

Germany 2.700 2.325 -3.691 -1.559

U.K. 0.982 0.731 -3.696 -2.627

USA 0.017 -2.153 -7.096 -5.629

Table 9.2 Output Gap in Percent of Potential GDP (see IMF 2011)

Population

Country 2007 2008 2009 2010

Australia 21.263 21.731 21.952 22.226

Brazil 187.642 189.613 191.481 193.253

Canada 32.883 33.263 33.669 34.059

China 1,321.290 1,328.020 1,334.740 1,341.414

Germany 82.177 82.013 81.767 81.603

India 1,142.000 1,158.000 1,174.000 1,190.524

Luxembourg 0.480 0.488 0.497 0.507

South Africa 48.363 48.911 49.464 49.991

U.K. 60.975 61.373 61.798 62.222

USA 301.903 304.718 307.374 309.997

Table 9.3 Population, Million Persons (see IMF 2011)

Investment

Country 2007 2008 2009 2010

Australia 29.259 29.541 27.853 27.592

Brazil 18.328 20.686 16.508 19.250

Canada 23.241 23.238 20.867 22.204

China 41.738 44.046 48.243 48.166

Germany 19.261 19.376 16.540 17.343

India 37.371 34.958 37.088 36.786

Luxembourg 20.922 20.284 16.353 16.304

South Africa 21.240 22.546 19.612 19.268

U.K. 18.175 16.648 13.478 15.015

USA 19.615 18.086 14.723 15.836

Table 9.4 Total Investment, Percent of GDP (see IMF 2011)

9.3 National Accounting

Country GDP

USA 14,526.550

China 5,878.257

Germany 3,286.451

U.K. 2,250.209

Brazil 2,090.314

India 1,631.970

Canada 1,577.040

Australia 1,237.363

South Africa 363.655

Luxembourg 55.195

Table 9.5 GDP, Current Prices, Billion US$, 2010 (see IMF 2011)

GDP per Capita

Country GDP per Capita

Luxembourg 108,951.721

Australia 55,671.620

USA 46,860.242

Canada 46,302.668

Germany 40,273.516

U.K. 36,164.101

Brazil 10,816.487

South Africa 7,274.416

China 4,382.136

India 1,370.800

Table 9.6 GDP per Capita, Current Prices, US$, 2010 (see IMF 2011)

National WealthValues of assets

held byinstitutional units

Non-financia lassets

Producednon-financia l

assets

Non-producednon-financia l

assets

F inancia lassets

- F ixed assets - Dwellings - O ther build ings and structures - M achinery and equipm ent - W eapons system s - Cultivated b io log ica l resources - In te llectual property products- Inventories- Valuables

- Natura l resources - Land - M inera l and energy reserves - Non-cultivated b io logical resources - Water resources - O ther natura l resources- Contracts, leases and licenses- G oodw ill and m arketing assets

- M onetary gold and SDRs- Currency and deposits- Debt securities- Loans- Equity and investm ent fund shares/units- Insurance, pension and standard ized guarantee schem es- F inancia l derivatives and em ployee stock options- O ther accounts receivable/payable

Fig. 9.2 Components of National Wealth as Computed in the SNA (see UN et al. 2009, p. 260)