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Analysis of Indicators of

Economics
Introduction
• The Financial sector is the backbone to
Economic Growth of a country.
• Financial Stability Economic Stability
• Physical capital development through financial
institutions and Non - bank financial
intermediaries.
• TIFS(Trade In Financial Services) has an
important role in the imports and exports of
financial sectors.
Research Questions
• How Money supply affects the economic
growth and trade of a country?
• Broad money Vs GDP Per Capita
• Broad money Vs Trade
• Trade Vs GDP Per Capita
Methodology
Money supply
GDP
• Gross domestic product(GDP) is a broad
measurement of a nation's overall economic
activity.
• GDP=C+I+G+(X−M)
C=Consumer spending on goods and services
I=Investment spending on business capital goods
G=Government spending on public goods and services
X=Exports
M=Imports​
Bar chart
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Broad money (% of GDP) Trade (% of GDP) GDP per capita growth (annual %)
Broad Money Vs GDP Per Capita
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Broad money (% of GDP) India IND GDP per capita growth (annual %)
Broad Money Vs Trade
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Broad money (% of GDP) India IND Trade (% of GDP)


Trade Vs GDP Per Capita
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Trade (% of GDP) India IND GDP per capita growth (annual %)
Inference
• An increase in the supply of money should lower
the interest rates in the economy, leading to
more consumption and lending/borrowing.
• The exchange rate has an effect on the trade
surplus (or deficit), which in turn affects the
exchange rate, and so on.
• Exports are less than Imports, the net exports
figure would be negative, indicating that India has
a trade deficit.

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