Fastest growing Economy
Economic growth is measured by certain parameters. These parameters include expenditure on food, housing, power, fuel, and transport and communications. Investments in education and medical facilities are important indicators of economic development. Economic growth is also dependent on population size, available labor force, fertility and mortality rates, per capita income and expenditure, regional growth, and literacy. All these parameters constitute social indicators of development (SID) based on which world economies are rated.
Human development index (HDI), a measurement of general well being is now a widely acceptable measurement of economic development and growth.
In terms of economic growth and development nations can be classified into advanced economies, developing economies, and underdeveloped or less developed economies. Majority of the Asian and Latin American countries, Mexico, East European nations, and some of the African countries fall in the category of developing economies. A few among these developing countries are newly industrialized and can be classified as ‘fastest growing economies’. India, China, Philippines, Thailand, Malaysia, Indonesia, Brazil, Argentina, Mexico, Turkey, Poland, Russia, Egypt and South Africa fall in the category of the fastest growing economies.
Parameters of economic development
The key parameters of measuring economic prosperity are:
- Per capita GDP (gross domestic product) – GDP essentially is the market value of goods and services produced by an economy. It is an aggregate of consumption expenditure, [C], government purchases, [G], investments [I], and net exports [X]. The GDP when divided by the total population of the country yields ‘per capita GDP’.
- Literacy rate – Literacy rate of a country is the ratio of the number of literate people compared to total population of that country.
- Life expectancy
- HDI – Human development index is a comprehensive measure of overall well being of individuals of a country.