Question

Select a foreign country – what is the component (C,I,G.NX) percentage breakdown for that country? Which...

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?

Homework Answers

Answer #1

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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