MACRO ECONOMICS

ASSIGNMENT NO 1

NAME: AMINA IQBAL

ROLL NUMBER: 21019005-043
CLASS: BBA-19
 LECTURE: INTODUCTION TO MACRO ECONOMICS

A- Compare any of two economies in the world. (Developing and Developed).

Countries are categorized according to their economic development. The World Bank classifies
countries according to their GNI per capita income: low income and lower middle income ; as
developing countries with an upper middle income ; and high income as developed countries.
The classification of a country does not only depend on its income but also on other factors that
affect how their citizens live, how their economies are integrated into the global system, and the
expansion and diversification of their export industries.
A developed country is one that has a high level of industrial development, bases its economy on
technology and manufacturing instead of agriculture. The factors of production such as human
and natural resources are fully utilized resulting in an increase in production and consumption
which leads to a high level of per capita income.A country with a high Human Development
Index (HDI) rating is considered a developed country. It not only measures the economic
development and GDP of a country but also its education and life expectancy. A developed
country’s citizens enjoy a free and healthy existence.
A developing country, on the other hand, is one that has a low level of industrialization. It has a
higher level of birth and death rates than developed countries. Its infant mortality rate is also
high due to poor nutrition, shortage of medical services, and little knowledge on health.The
citizens of developing countries have a low to medium standard of living because their per capita
income is still developing, and their technological capacity is still being developed. There is also
an unequal distribution of income in developing countries, and their factors of production are not
fully utilized. Developing countries are also referred to as third-world countries or least-
developed countries.
On the very next page we could clearly see the difference between two economies in wwhich
Canada is developed and Pakistan is developing country.
Economy of Canada :
The economy of Canada is a highly developed mixed-market economy. It is the 8th-largest GDP
by nominal. As with other developed nations, the country's economy is dominated by the service
industry which employs about three quarters of Canadians. Canada has the third-highest total
estimated value of natural resources, valued at US$33.98 trillion in 2019. It has the world's third-
largest proven oil reserves and is the fourth-largest exporter of crude oil. It is also the fifth-
largest exporter of natural gas. In 2021, Canadian trade in goods and services reached
CA$2.016 trillion. Canada's exports totalled over CA$637 billion, while its imported goods were
worth over CA$631 billion, of which approximately CA$391 billion originated from the United
States, CA$216 billion from non-U.S. sources. In 2018, Canada had a trade deficit in goods of
CA$22 billion and a trade deficit in services of CA$25 billion.
Canada’s economy has largely recovered from the COVID-19 crisis. Domestic demand is
picking up following the easing of containment measures. Exports are expected to strengthen,
demand for commodities buoying trade amid shocks to world growth. Limited trade ties to
economies hard-hit by the war in Ukraine, and income from high resources prices, shield Canada
from larger economic impacts. Real GDP is projected to grow by 3.8% in 2022 and 2.6% in
2023. Unemployment will remain low as output rises slightly above potential. Global supply
tensions will keep price growth high this year, compounding underlying inflationary pressures.

Economy of pakistan:
The economy of Pakistan is a low income developing economy. It is the 24th-largest worldwide
in terms of GDP based on purchasing power parity (PPP). According to 2021 estimate, Country
has population of 227 million people (5th-largest worldwide), the nominal GDP of Pakistan
stands at US$347 billion with a nominal GDP per capita of US$1,562 (160th worldwide); its
GDP based on PPP stands at US$1.329 trillion with a GDP (PPP) per capita of US$5,973 (140th
worldwide).
Pakistan is a developing country[35][36][37] with a semi-industrial economy.[38][39][40]
Primary export commodities include textiles, leather goods, sports equipment, chemicals, and
carpets/rugs.
The growth poles of Pakistan's economy are situated along the Indus River;[39][43] the
diversified economies of Karachi and major urban centres in Punjab, co-existing with lesser
developed areas in other parts of the country.[39] The Pakistani economy has suffered in the past
from internal political turmoil, a rapidly growing population, and mixed levels of foreign
investment.[44] Foreign exchange reserves are bolstered by steady worker remittances, but a
growing current account deficit—driven by a widening trade gap as import growth outstrips
export expansion—could draw down reserves and dampen GDP growth in the medium term.
Pakistan is currently undergoing a process of economic liberalization, including the privatization
of all government corporations, which is aimed at attracting foreign investment and decreasing
budget deficits.
As of May 2021, the Pakistani government has predicted that future growth rates will be 5
percent—one of the highest in South Asia.[48] According to the World Bank, the levels of
poverty in Pakistan fell from 64.3 percent in 2001 to 21.9 percent in 2018.

B-Collect the data of GDP, GDP Growth Rate, Literacy Rate and Exports of the last 10 Years.

ECONOMY OF CANDA :

1-Canada GDP Growth Rate - Historical Data:

year GDP
growth%
2021 4.56%
2020 -5.23%
2019 1.88%
2018 2.78%
2017 3.04%
2016 1.00%
2015 0.66%
2014 2.87%
2013 2.33%
2012 1.76%
2-Canda GDP-per capita

Year GDP Per

capita
2021 $1,990.76B $52,051
2020 $1,645.42B $43,258
2019 $1,742.02B $46,329
2018 $1,725.33B $46,549
2107 $1,649.27B $45,129
2016 $1,527.99B $42,316
2015 $1,556.51B $43,596
2014 $1,805.75B $50,956
2013 $1,846.60B $52,635
2012 $1,828.37B $52,66

3-Canada- literacy rate

In a country where basic public education is completely cost-free. individuals are bound to have
a higher literacy rate compared to countries that do not follow such a structure. Students until
grade 11th or 12th do not require to pay fees to enroll in a publicly funded school in the
provinces of Canada. The adult (15+) literacy rate in Canada between 2008-2014 has been at a
stable 99%. Total is the percentage of the population age 15 years and above who can, with
understanding, read and write a short, simple statement on their everyday life. In total, education
spending in Canada increased from $61.5 billion in 2012/13 to $68.1 billion in 2016/17. This
represents a 10.7 percent increase in nominal spending, or $6.6 billion. This amount indicates
that Canada spends 6.4 percent of its Gross Domestic Product (GDP) on bettering the quality of
education the country can provide for its citizens and those wishing to apply from foreign
countries.
4- Canada-exports

Year Billions $ % of GDP

2021 $610.98B 30.69%
2020 $483.15B 29.36%
2019 $555.85B 31.91%
2018 $556.94B 32.28%
2017 $518.77B 31.45%
2016 $481.36B 31.50%
2015 $495.75B 31.85%
2014 $573.08B 31.74%
2013 $560.11B 30.33%
2012 $554.96B 30.35%

Economy of pakistan:
1- Pakistan GDP Growth Rate - Historical Data

Year GDP
growth%
2021 6.03%
2020 -1.33%
2019 2.50%
2018 6.15%
2017 4.43%
2016 5.53%
2015 4.73%
2014 4.67%
2013 4.40%
2012 3.51%
2-Pakistan GDP - Historical Data

Year GDP $ Per capita

2021 $346.34B $1,538
2020 $300.31B $1,360
2019 $320.91B $1,482
2018 $356.13B $1,678
2017 $339.21B $1,632
2016 $313.63B $1,540
2015 $270.56B $1,357
2014 $244.36B $1,251
2013 $231.22B $1,209
2012 $224.38B $1,190

3-Pakistan Literacy Rate - Historical Data

Years Literacy rate Annual change

2019 58.00% 0.99%
2018 57.01% -2.12%
2017 59.13% 2.15%
2016 56.98% 1.38%
2015 55.60% -1.17%
2014 56.76% 2.03%
2013 54.74% -0.64%
2012 55.38% 0.48%
2011 54.89% -0.63%
2010 55.53% 3.39%
4-Pakistan Exports - Historical Data

Years Billions$ % of GDP

2021 $34.57B 9.98%
2020 $27.94B 9.30%
2019 $30.14B 9.39%
2018 $30.56B 8.58%
2017 $27.89B 8.74%
2016 $27.40B 10.60%
2015 $28.69B 12.24%
2014 $29.92B 12.24%
2013 $30.70B 13.28%
2012 $27.82B 12.40%

C- Make graph through excel.

ECONOMY OF CANADA:

1-GDP growth rate of Canada:

2022 6.00%

2020
4.00%
2018
2.00%
2016

2014 0.00%

2012
-2.00%
2010
-4.00%
2008

2006 -6.00%
1 2 3 4 5 6 7 8 9 10

year GDP growth%

2- Canada GDP per capita:

Chart Title
60000

50000

40000

30000

20000

10000

0
1 2 3 4 5 6 7 8 9 10

Year Per capita

3-Canda exports:

% of GDP
32.50%
32.00%
31.50%
31.00%
30.50%
30.00%
29.50%
29.00%
28.50%
28.00%
27.50%
$483.15B

$555.85B

$481.36B

$560.11B
$610.98B

$556.94B

$518.77B

$495.75B

$573.08B

$554.96B

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
ECONOMY OF PAKISTAN

1-Pakistan GDP growth rate:

GDP growth%
7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-1.00%

-2.00%

2-Pakistan –GDP PER CAPITA

Per capita
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
$356.13B

$244.36B

$231.22B
$346.34B

$300.31B

$320.91B

$339.21B

$313.63B

$270.56B

$224.38B

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
3- Pakistan literacy rate:

Chart Title
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
-10.00%

Literacy rate Annual change

4-Pakistan export:

% of GDP
14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
$34.57B $27.94B $30.14B $30.56B $27.89B $27.40B $28.69B $29.92B $30.70B $27.82B
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012