7 ECONOMIC

7 ECONOMICINDICATORSA Presentation made and submitted by the joint effects of Anshul , Mohit, Prateek, Akash and Raghav.Economic reports and indicators are those often voluminous statistics put out by government agencies, non-profit organizations and even private companies. Heres a primer on 7 of the most common and vital economic indicatorsWhat is it? Gross domestic product also known as GDP is the market value of all goods and services produced in a nation during a specific time period. 1.GROSS DOMESTIC PRODUCTWhy is it important? The Federal Reserve uses data such as the real GDP and other related economic indicators to adjust its monetary policy.How it is calculated? GDP = private consumption + gross investment + government spending + (exports imports), or GDP=C+I+G+(X-M)

Graph showing India GDP till 2018

What is it? In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Inflation also reflects an erosion in the purchasing power of money. When the price level rises, each unit ofcurrencybuys fewer goods and services.2.INFLATIONHow is it calculated? India uses the Wholesale Price Index (WPI) in its calculation, according to which, a total of 676 commodities have been chosen and divided into three categories, all of which have a different weight in inflation. 102 of these 676 commodities belong to the category of Primary articles (weight 20.12%) while 19 belong to Fuel and Power (weight 14.91%) group. The remaining 555 items belong to the Manufactured Product (weight 64.97%) group.

Above Image Showing Inflation Rates

What is it? The CPI measures changes in the prices paid for goods and services by urban consumers for the specified month. The CPI is essentially a measure of individuals cost of living changes and provides a gauge of the inflation rate related to purchasing those goods and services.3. CONSUMER PRODUCT INDEX (CPI)Why is it important?

This statistic is the best indicator of inflation that we have to rely on. It is particularly closely scrutinized by financial economists now since its how's inflation to be at a 16-yearlow. How it is calculated?

TheCPIiscalculatedby collecting the prices of a sample of representative items over a specific period of time. Goods and services are divided into categories, sub categories, and sub indexes.

Consumer Price Index based on InflationWhat it is?

Thebalance of payments, also known asbalance of international paymentsand abbreviated BOP or BP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year). 4.BALANCE OF PAYMENT(BOP)Why it is important?

A countrys Balance of Payments helps the country to reveal its international economic position. It presents the international financial position of the country.What it is?

Gross national product(GNP) is the market value of all theproductsand services produced in one year by labour and property supplied by the citizens of a country. When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output.5.GROSS NATIONAL PRODUCT(GNP)Why it is important?

The importance of GNP is very useful for the economists in solving the problems of inflation, deflation, poverty and low standard of living.How it is calculated?

GNPis typicallycalculatedas:

GNP= GDP + Net income inflow from abroad Net income outflow to foreign countries.

Graph Showing Progressive Growth of GNP

What it is?

Per capita incomeor average income or income per person is a measure ofmeanincomewithin an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such asGDPorGross National Income) and dividing it by the total population. It does not attempt to reflect the distribution of income or wealth.6. PER CAPITA INCOMEWhy is it important?

Per capita divides all available income in a region by the area's population. These comparisons are important for investment, economic stability and appeals for aid.How it is calculated? Select and count the people of all ages in a particular group -- for example a nation, state or city. Add up the total income for the group for a specific year. Divide the total income by the number of people. The result is the per capital income.Per Capita Income of different states in India for the year 2000-01

What is it?

It is the 'only' the foreigncurrencydeposits and bonds held bycentral banksand monetary authorities. However, the term in popular usage commonly includes foreign exchange andgold,special drawing rights(SDRs), andInternational Monetary Fund(IMF) reserve positions.7.FOREIGN EXCHANGE RESERVE(FX RESERVE)Why it is important?

Foreign exchange reserves are important indicators of ability to repay foreign debt and for currency defense, and are used to determine credit ratings of nations.How it is calculated?

Multiply the amount ofcurrencyyou plan toexchangeby the exchange rate.

Showing a 47% increase In Forex Reserves

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