Reference no: EM132961730

Assignment #1: National Income (GDP)
You need to research GDP growth, and components of GDP. You will create 3 graphs in total, and briefly analyse these.
GDP growth is a key indicator. This is easily available from both the World Bank and the IMF. The IMF database provides more up-to-date information (up to Quarter 1 of 2021), and is what you should use for this exercise: www.imf.org/external/datamapper. (A disadvantage is that you cannot change the time period for the charts in this IMF site; an advantage is that it includes IMF estimates for future years - this may help you in the Final Project when you consider potential investment in this economy.) A series of screenshots is provided below to guide you through creating a graph. You should include 3 countries in your graph for this assignment: your selected country, Canada and China.
Consumption is a key component of GDP. This can be easily located and graphed on the World Bank database: data.worldbank.org. A series of screen shots is provided below (labeled F). Include the same 3 countries in your graph: your selected country, Canada and China. Restrict the time period to start in 2010, up until the most recent year available, to make it easier to analyze recent trends and volatility.

Saving is the ‘other side' of Consumption. It is easy to create this graph once you have the Consumption graph: just type "Gross Savings" in the search line, and select "Gross Savings (% of GDP)". This will replace the Consumption lines with Savings lines, with the same time period and the same countries.

You will therefore create 3 graphs, each including 3 countries: your selected country, Canada and China:
• Real GDP growth (annual percentage change) [from the IMF database]
• Final consumption expenditure (% of GDP) [from the World Bank database]
• Gross savings (% of GDP) [from the World Bank database]

Questions:

a. What can you say about the trend in national income, its volatility, and recent economic performance in your selected country since 2010? How does it compare with Canada and China over that period?
b. What has been the trend since 2010 in your selected country's consumption (C) as a proportion of GDP? How does the share of C in GDP compare with Canada and China?
c. What has been the trend since 2010 in your selected country's saving (S) as a proportion of GDP? How does the share of S in GDP compare with Canada and China?
d. Based on this analysis, do you think it is high risk, or low risk, for a Canadian financial investor thinking of transferring funds to invest in financial assets in your selected country? Why do you consider it high or low risk?

Attachment:- Research Assignment Instructions 1.rar