Select a foreign country – what is the component (C,I,G.NX) percentage breakdown for that country? Which do you think is the best GDP component for future growth in your country and why?
Country of choice - India Comparing with USA
C = 71% C = 70%
I = 27% I = 18%
G = 10% G = 17%
NX = - 8 % NX = - 5 % [All percentages are as of 2019]
When, we deal with the GDP growth rate, US had an annual
GDP growth rate of 2.3% , while India had
an annual GDP growth rate of India in 2019 was
4.2%.
Annual Consumption and Net Exports as a % of GDP has been quite
stable in India, and almost similar figures can be seen for
USA.
The potential for future growth for India is the Government
Spending(G) mainly because, the Investments(I) has stalled
due to weak consumer demand. The non government part of the
GDP(C+I+NX) has not been a great contributer to GDP growth over the
recent years and Government Spending(G) has
somewhat stabilized the growth rate, hence there is a scope about
increasing G to improve India's GDP growth
rate.
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