There is a clear difference in the economic growth of developed, developing and emerging countries. There are several reason for this; good examples that clearly protray this disparity are the United Kingdom, China and India. The United Kingdom is a developed country with positive economic growth. The United Kingdom Gross Domestic Product is worth 2646 billion dollars or 4.27% of the world economy, according to the World Bank. The United Kingdom is among the world's most developed economies.
The UK has experienced economic growth since the last recession ended in 1990 until recently when it once agin entered recession. Since 1996 the level of real national output has grown in excess of two per cent each year; leading to a large rise in total real GDP and an increase in average living standards. The data shows than the UK has an average economic growth of 2.8% over the last 10 years excluding 2009 when it entered recession. The UK's economic growth fluxuates but remains steady.
China is a developing country that has a very high economic growth as a result fo radical changes after 1978.The China Gross Domestic Product is worth 4326 billion dollars or 6.98% of the world economy, according to the World Bank. China's economy is the second largest in the world after that of the United States. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector.
A major component supporting China's rapid economic growth has been exports growth. As seen by the data China's economic growth has continually increased over the years from 7.6 % all the way to 11.9% however dropped in 2009 due to the recession. Though it has not been affected as badly as other countries such as the UK and has stilled maintained a high positive economic growth rate of 9.0%.
India is an emerging country which hasreally started to show that it is in the up and up with the vast change in it economic growth. he India Gross Domestic Product is worth 1217 billion dollars or 1.96% of the world economy, according to the World Bank. India's economy is now made up of raditional village farming, modern agriculture, handcrafts, a wide range of modern industries, and a range of services.
Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India's economic growth was on the increase up until 2009 due to the recession however peaked at 9.2%.
The three countries differ greatly as the data shows . They are all different countries interms of their status whether they are developed, developing and emerging. All the countries have been achieving economic growth both in the short run and in the run. In the short rin economic growth comes down to the country make more intensive use of its existing factors of production. Therefore growth comes from a higher level of AD and therefore leading to greated AS, the increasing supply comes from utilisinf existing labour and capital.
However in the long run it is more effective and positive growth comes from increasing stock of inputs whether it me land, labour or capital which together increase productivity. These factors increase AS amd therefore more potential output. China has clearly got the understanding of and has demostrated so by achieving much higher growth than india and the UK. China also learnt that more money came from exports therefore altered it job sector and more people were now working in the tertiary and secondary sector to maximise production of goods that could be exported.
India also modified its job sector by increasing the number of people working in the secondary and tertiary sector, however not to the same extent therefore didi not experience the same economic growth howevert his was not the only reason. As a result of india showing increase in growth other factors aslo lead to more increase foreign investement allowed this by reducing unemployment and increasing the ammount of money into the circular flow of the economy.
The UK had the lowest figures due to a couple fo reason one is that it has maximised much of the resources and input available tot them therefore a continuos large increase it not capable. Also when there is a high economic growth it is always brought down, the reason for this is because of the ammount of imports which means money is lost form the circuar flow of the economy. The UK is dependant on imports as it is a small island with few resources. Unlike India who have the resources but China are relied on for so many products the imports do not have such a bif impact on the growth.
However all the countries have been affected by the recession however some countries economic growth has had a bigger negative impact than others, especially the UK with 0.7%. China and India have managed to maintain a high growth due to the continual reliance on the products.