DESK REVIEWS | 01.03.01. Strength of the economy
DESK REVIEW | 01.03.01. Strength of the economy
According to the World Bank metrics, Brazil is an upper middle-income country and one of the biggest economies in the world. In 2017, the GDP per capita (PPP – current international $), was 15,553.4 – representing a total economic turnover of 2,056 trillion USD. Comparatively, Mexico has 1.15 trillion USD and Argentina has 637.6 billion. Brazil has experienced a remarkable growth in the last decade, which made the country become the fifth largest economy in the world (The World Bank, 2019).
The World Bank. (2019). The World Bank Data. https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD
As per the World Bank categorisation, India is a lower-middle-income country. As the seventh largest economy in the world, in 2020, India had a Gross Domestic Product (GDP) of 2.6 trillion US dollars (World Bank, 2020a). Moreover, the GDP per capita in India was recorded as 1927 US dollars in 2020 (World Bank, 2020b).
World Bank. (2020a). GDP per capita, India | Data. Available from https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=IN
World Bank. (2020b). India | Data. Available from https://data.worldbank.org/country/india
According to the World Bank, Indonesia is an emerging middle-income country and ‘the world’s 10th largest country in terms of purchasing power parity and an annual growth rate of 5.6% (Agustina et al., 2019, p.78; World Bank, 2019a). Since 1999, the poverty rate has reduced by more than half to 9.8% in 2018. Substantial progress has also been made with regards to GDP. Between the years 2000 and 2018, Indonesia’s GDP per capita steadily increased from $807 to $3,877 (World Bank, 2019a).
Agustina, R., Dartanto, T., Sitompul, R., Susiloretni, K. A., Suparmi, Achadi, E. L., Taher, A., Wirawan, F., Sungkar, S., Sudarmono, P., Shankar, A. H., Thabrany, H., Susiloretni, K. A., Soewondo, P., Ahmad, S. A., Kurniawan, M., Hidayat, B., Pardede, D., Mundiharno, … Khusun, H. (2019). Universal health coverage in Indonesia: concept, progress, and challenges. The Lancet, 393(10166), 75–102. https://doi.org/10.1016/S0140-6736(18)31647-7
World Bank. (2019a). Indonesia. https://www.worldbank.org/en/country/indonesia/overview
Mexico is among the ten largest countries in the world, it is the second largest economy in Latin America after Brazil. It ranks as the 15th world economy, according to its Gross Domestic Product (GDP) at exchange rate, and the 11th in terms of GDP at Purchasing Power Parity (PPP). It has been classified as an upper middle-income country by the World Bank (CEPAL, 2018; OECD, 2017a; Banco Mundial, 2019). The Mexican currency is the Mexican Peso (MXN) and the current exchange rate by the Central Bank as of 18 January 2019 is 19.1 pesos per USD and 21.7 pesos per Euro (Banco de México, 2018).
Mexico has an open economy, oriented to exports and highly regulated free trade agreements with more than 40 countries including the European Union, Japan, Central and South America, as well as the North American Free Trade Agreement (NAFTA) with the United States and Canada, which is currently under revision and negotiation. This has put Mexico within the highest 10 export economies in the world. The country’s growth is projected to increase from 2.0% in 2017 to 2.2% in 2018 and 2.5% in 2019, supported by higher US growth. However, the growth forecast was lower than expected in April 2018, reflecting the impact on investment and domestic demand of prolonged uncertainty related to trade (International Monetary Fund, 2018).
While Mexico has been a member of the OECD since 1994, its per capita Gross National Income is the lowest among the Organisation for Economic Co-operation and Development (OECD) members –58% below the OECD average in 2016, in terms of Purchasing Power Parity. Compared to upper middle-income countries (UMICs), however, Mexico’s per capita Gross National Income (GNI) is 7% above the average of that group (The World Bank, 2019).
Banco de México. (2018). Mercado cambiario, tipo de cambio, Banco de México.
Banco Mundial. (2019). México: proyectos.
CEPAL. (2018). Estudio Económico de América Latina y el Caribe, 2018 (LC/PUB.2018/17-P).
International Monetary Fund. (2018). World Economic Outlook Challenges to Steady Growth.
OCDE. (2017a). Estudios Económicos de la OCDE México (OCDE Publishing, Ed.). OCDE Publishing. https://www.oecd.org/eco/surveys/mexico-2017-OECD-Estudios-economicos-de-la-ocde-vision-general.pdf
The World Bank. (2019). Mexico Data. https://data.worldbank.org/country/mexico