India’s Solid GDP Growth

India Continues With Solid Economic Growth

First Published: July 14, 2010 ADawnJournal.com

The recession has been good and bad for India. With the recession, spending has gone down and the amazing growth in auto sales has slowed. In years past the industry grew by 30 percent per year, but this past year it grew by only 15 percent as more and more people in India began to hold back on spending. However, overall the economy of India has continued to grow even during the recession. The International Monetary Fund recently announced that in 2010, the forecast growth for the country is 9.5 percent. The reason for this is the high corporate profits, as well as the financial conditions that were very favourable.

Originally, India was expected to only have a growth of 8.8 percent, but that was raised as the country continued to do well as the world moved out of a recession. The growth of 9.5 percent is roughly two percent above the growth for last year in India, which stood at only 7.4 percent. This is better than the global economy growth which only stood at five percent in the first quarter of 2010. This shows that India is doing very well and continuing to grow while the recession has hurt other countries. Asia as a whole is doing very well, and that is helping India as its major trading partners are in Asia, as well as the United States, which outsources a great deal of work to the subcontinent.

However, if you are looking for a country to invest in, India does have its benefits but its growth is still lower than that of China, which has a growth of 10.5 percent right now. Japan in contrast is the second largest economy on Earth, but it only had a growth of 1.9 percent, which was well below that of India. This shows that India’s economy is stronger at the moment than some of the largest economies on the planet.  Throughout the recession, many investors worried about investing in India because the country had never gone through a huge recession such as the one in the last 2000s. However, after some initial hiccups, the economy of India began to grow once again, move past the rest of the world in terms of the speed of growth, only beaten by China.

This allowed investors to determine India is a country that is growing quickly and rapidly, and is still seeing huge growth while other countries are struggling. The recession has begun to fade and with it India is again moving forward.

This continues the process that began in the late-1990s when India began to implement major reforms for its economy. This allowed India to grow in economic power, which has helped its citizens have a better standard of living. More people buying in India helps the economy grow, and the better the economy grows, the more India can export cheaply to other countries like Canada, America and China.

If you are looking for a country to invest in, invest one of the few that actually did well during the recession

India’s Economy and Standard of Living

The Standard Of Living in India

First Published Date : August 7, 2010 ADawnJournal.com

India is a developing country that is on the way to becoming developed. Its economy is growing rapidly and that is helping to raise the standard of living. This is important for investors to know because the faster that India grows its standard of living, the more people within the country who will have buying power. The more buying power, the more money flowing through the country.

The current purchasing price parity adjusted gross domestic product in India is $3,176, which is still quite low. However, India has a growth rate of roughly eight percent per year, which means that it is growing quite fastest and it has what may be the largest middle class in the world. The current number of citizens in the Indian middle class stands at 300 million; however this is by Indian standards, which is lower than the standards set in Europe and the United States. However, the growing middle class means that by 2015, the PPP-Adjusted GDP will be six percent higher than it is now. The level of poverty has also gone down in India over the past few years, currently sitting at 22 percent of Indians living under the poverty line. This number used to be much higher and India is hoping to eradicate poverty by the year 2020.

Rural areas have a much higher level of poverty when compared with the cities and currently, 24.3 percent of the population lives on $1 per day, which is down from levels seen in 1981, which were as high as 42 percent.

India has seen the same type of effect on its economy as China has seen. As the country begins to build more and more infrastructure, export more and import more, the level of money for each individual then goes up. This means that people are able to purchase more, which raises their standard of living and the standard of living for the people they buy from. Current estimates have India increasing its middle class by 100 million in the next decade given how fast the economy is going.

It should be noted that India did see a slowdown during the recession that gripped the world in 2009-10, but that is beginning to change and once again the country is moving forward. However, during that recession, the country still had a very high growth rate for its economy.

In addition, the infrastructure of the country is also improving. There are roughly one million broadband lines in India, with 76 percent of the lines available via DSL and the rest available through cable modems. For water infrastructure, it is much worse for the country with no city within India having a continuous water supply, with the longest solid duration of water only being 12 hours a day. Some cities only had water for half an hour a day.

Even with some of these problems, India is working to fix them and make the country a world leader as a developed country. As the years go by, things are looking up for this highly populated country.

Some Facts About Brazil’s Economy

The Growing Power of Brazil

First Published Date: August 19, 2010 ADawnJournal.com

Brazil is a very interesting country with a very bright future if many economists are to be believed. Brazil, while considered a developing country in the past, is now one of the most important economies on Earth.

Brazil has the eighth largest economy in the world in terms of nominal GDP, and it ranks ninth in terms of purchasing power parity. Among all of the South American nations, it has the largest economy, and it has one of the fastest growing economies on Earth, with a GDP growth rate of five percent. Naturally, many are predicting that within a few decades, Brazil will have one of the five largest economies on the planet.

In 2009, Brazil was the top country in terms of upwards evolution of competitiveness. It gained eight positions, and passed Russia for the first time in history. Brazil is also beginning to close the gap with India and China.

Much of Brazil’s fast growth is as a result of the changes made to the economy in the 1990s, which focused on fiscal sustainability and the opening of the economy, helping to boost how competitive the economy is in the world. Brazil, as a result, now has a much better environment for private-sector development.

Brazil’s economy is in a wide amount of sectors. The country builds submarines and aircraft, as well as smaller-end technologies. In addition, Brazil was the only country in the entire Southern Hemisphere to help in the construction of the International Space Station.

Exports within the country amount to $158.9 billion. The biggest export for the economy of Brazil is transport equipment, iron ore, soybeans, footwear, coffee, automobiles and their parts, and machinery. The main countries that Brazil exports to are the United States (14 percent), Argentina (8.9 percent), China (8.3 percent), Netherlands (5.3 percent), Germany (4.5 percent) and Japan (3.1 percent)

Brazil imported $136 billion in goods in 2009, with their main imports being machinery, electric and transport equipment, oil, chemical products, automotive parts and electronics. The largest importers into the country are the United States (14.9 percent), China (11 percent), Argentina (7.7 percent), Germany (6.9 percent), Japan (3.9 percent), Nigeria (3.9 percent) and South Korea (3.1 percent).

Brazil, while greatly improving its economy, still has some work to do. The country still has a great deal of poverty, and low wages, along with environmental problems. However, as the country continues to move into the future, it is certain that it will become a leader on Earth in many sectors. Brazil already leads the world in the use of ethanol gas, with a large percentage of its vehicles running on ethanol. In the coming decades, most economists believe that the United States will fade in economic power, while Brazil, China, India and the European Union will grow in economic power to become the economic centers of the world. For many looking for countries to invest in, Brazil is a place that cannot go wrong for the time being, even weathering the worldwide recession quite easily.

Some Facts About Vietnam’s Economy

First Published Date : September 1, 2010 ADawnJournal.com

Vietnam: A Changing Country

When many people think about Vietnam, the one thing they think about is the Vietnam War. However, this country is much more than that and it has changed from that dark chapter in its past. Now, it is a very popular tourist destination and a place many Americans now go for a visit.

Vietnam is the eastern-most country on the Indochina Peninsula, located in Southeast Asia. It shares a border with China, Laos and Cambodia and it ranks as the 13th most populous country in the world with 86 million people. Vietnam was once part of China, but it fought for its independence and won it in 938. From that point on, various rulers controlled the country for almost 1,000 years before the French moved in and colonized it. They were pushed out in the mid-20th century, which eventually led to the Vietnam War, which the North Vietnam won in 1975, effectively unifying the country. Rather than fade away like North Korea, Vietnam instituted economic and political reforms and by 2000 it had opened up diplomatic relations with nearly all the countries on Earth. The hard work of the people of Vietnam and the government helped the country have one of the highest economic growth paces in the world, which allowed the country to join the World Trade Organization in 2007.

In terms of land size, Vietnam is larger than Italy and is nearly the size of Germany, which is something many people do not realize. The country has a varied landscape as well. There are many hills and forested mountains in the country. Only 20 percent of the country is actually considered to be flat land, while mountains make up 40 percent. Small hills make up another 40 percent. In that, 42 percent of the country is covered by tropical forest. Most of the mountains and highlands are in the north, while the south has lowlands and a view mountains. During the winter, which runs from November to April, monsoon winds hit the country and create a large amount of moisture falling in the country, which can cause severe flooding.

Going back to the economy of Vietnam, it has grown immensely after putting in economic reforms in the mid-1980s, even though the country is effectively communist. From 1990 to 1997, the country had about an eight percent annual growth in its GDP, and from 2005 it was seven percent, making it one of the fastest growing economies on the planet. During this same period of time, foreign investment in the country grew three-fold, and the domestic savings of the country grew four-times. Vietnam is investing heavily in information technology, making it a world leader and the country also has many oil reserves, something foreigners do not even realize. In fact, Vietnam is the third-largest oil producer in Southeast Asia, outputting 400,000 barrels a day. Vietnam is also a very open economy, trading and importing heavily. Two-way trade for the country amounts to 160 percent of its GDP, which is four times that of India and twice that of China. All of this has helped Vietnam lower the level of extreme poverty in the country significantly. Currently, Vietnam has a lower level of extreme poverty than India, China and the Philippines.

It is estimated that by 2025, Vietnam will have the 17th largest economy on the planet and by 2050, the country will be 70 percent the size of the United Kingdom economy. Vietnam is also the largest producer of black pepper and cashew nuts in the world, representing one-third of the global share of both of those products. They are the second largest producer of rice, and they export other products like fish, rubber, tea and coffee. All of this has helped lower the unemployment rate in Vietnam to only 2.9 percent, which is below the level of many industrialized nations.

Over the past few years, Vietnam has begun to rise up in the rankings of world countries. Here is a quick rundown of how it compares to other countries:

Vietnam ranks 39 out of 144 countries on the Global Peace Index.

Vietnam ranks 142 out of 157 countries on the Index of Economic Freedom.

Vietnam ranks 61 out of 111 countries on the Worldwide Quality of Life Index.

Vietnam ranks 155 out of 167 countries on the Worldwide Press Freedom Index.

Vietnam ranks 111 out of 163 countries on the Corruptions Perceptions Index.

Vietnam ranks 109 out of 177 countries on the Human Development Index.

Vietnam ranks 77 out of 125 countries on the Global Competitiveness Index.

As can be seen, some areas need to be improved but Vietnam has grown immensely on the world stage since the dark days of the Vietnam War.

Vietnam also has to improve its human rights record. In a 2004 report of Human Rights Practices, Vietnam’s record was rated as poor with a history of serious abuses. The government of the country has restrictions on freedom of the press, freedom of speech, freedom of assembly and freedom of association.

This is beginning to improve though and Vietnam is considered to be a friend and reliable partner of all countries within the international community and often takes part in international cooperation measures. Vietnam is a member of 63 international organizations including the WTO, La Francophonie, NAM, ASEAN and the United Nations. In addition the country is part of 650 non-governmental organizations.

Vietnam is not a perfect country, but it is an improving country. It is growing fast and in the 21st century it will become a world leader, helping to influence how the world progresses into the 22nd century based on its economic power that just continues to grow. If you are thinking of visiting Vietnam, then you are in for a treat. The people of the country are friendly, the weather is warm, the landscape is beautiful and the culture is rich and steeped heavily in history. It is certainly a country on the move and one that you should keep an eye on moving into the future.

$75000 A Year Buys You Perfect Happiness

Happiness Comes At A Price

First Published: ADawnJournal.com September 19, 2010

The Beatles said Can’t Buy Me Love, and that All You Need is Love but a recent study done by Princeton University found that while you can’t buy love, you can buy happiness. In the study, 450,000 Americans were surveyed and analyzed. Between 2008 and 2009, the study found that there are two forms of happiness. There is the happiness that comes from being content day-to-day and there is the happiness that comes from being satisfied with who you are and where you are in the world. The study was done by economist Angus Deaton and psychologist Daniel Kahneman.

The study discovered that having more money will not increase the contentment you feel on a day-to-day basis, but it will increase the overall satisfaction that you feel in your life.

Not only did the study find that, but it also found that there is a specific dollar amount that gives you the most happiness. Once you go over this dollar amount, the amount of happiness and satisfaction you feel does not increase anymore. Once you hit the plateau of $75,000, your day-to-day happiness no longer increases. So, if you have $1 million, you will have the same amount of happiness that you have at $75,000. Your overall satisfaction can still increase though.

One interesting fact is that the happiness you feel will be based on your income and where you are in a specific country. For example, in the United States, you would need to earn $163,000 in New York City to have the $75,000 level of happiness. In Chicago and Pueblo, Colorado, you would need to earn $84,750 and $62,000 respectively.

This doesn’t mean you are going to buy your happiness with things but money will help you feel better in your life. When you are living paycheque-to-paycheque in your life and you are wondering how you are going to pay your bills, you are often not very happy. However, as time goes on and you make more money, you will begin to feel better and happier. Waking up in the morning knowing you won’t lose your house will make you happier and more content. When you know you have enough money to go out for food, to buy some of the things you want and to go on vacation, you will be happier.

Now, that all being said, if you are going to be happy with your $75,000, then you cannot decide to just go and live a $100,000 lifestyle. You need to live within your limits because if you don’t you are going to suffer financial stress that is going to lower your contentment and happiness. Remember, live within your limits and that way you will be happy. In American right now, millions of people are living outside of their means and that puts immense financial stress on their lives and their families. You do not want that, so make sure you have your happiness at a price you can afford.

If you don’t make $75,000 you can still be happy, but that $75,000 limit is something you should shoot for to be financially happy and emotionally content within your life.