Introduction
Economics is the name of earning and utilizing the money at a place from where the likelihood of earning would be on a higher place. Adam Smith and Alfred Marshal are known as the Father of Economics (FOE) and according to them, Economics is the subject which stated that how to earn the money and how to consume it .
There are two different kinds of economics, which particularly are Macroeconomics and Microeconomics. Microeconomics is the name of economics which relate to individual economics, while the economics concerned with the economy as a whole is known as Macroeconomics. It is one of the most important types of economics in which the things of the economy would be analyzed accordingly and effectively at the same time. There are number of countries of the world which are moving with perfection in the current economic consequences and every country has their own importance and tendency as far as international trade is concerned .
The main perspective of this assignment is to analyze the economical stance of different economies predominantly of Europe. Both demand and supply analysis would have been done in this particular case. The countries which have been considered for the same analysis are Germany, France, UK and Austria. The economic indicators which would be used in this analysis are Gross Domestic Product (GDP), Inflation Rate, Unemployment rate and Interest Rate. Let’s now move towards the Analysis of Germany.
Germany Analysis
Germany with an official name of Federal Republic of Germany is a federal parliamentary republic located in Western Central Europe. The country has 16 states and its largest city is Berlin. Germany has the fourth largest economy of the world in terms of Nominal GDP and 5th largest country of the world in terms of Purchasing Power Parity (PPP). Germany is known as a global leader in industrial and technological sector. The country recorded total GDP of US$ 3.747 trillion in the year 2013 with per capita income of US$ 45,925 (Economist, 2011, pp. 112-136). The GDP of the country not performed well at the time of current economic crisis. Negative proportion of economy had been envisaged. The growth rate of the economy was also not as high as it was in the congestion band from 0.5% to 2.1% in particular. Both the demand and supply side of the economy had affected due to the current economic downturn. The inflation rate of the country lies in a specific range like from 2% to 2.5% in particular. The Central Bank of Europe is extremely eager to enhance the financial belongings of the company as the bank had placed the key policy rate of the country under 1% in order to boost up the stance of borrowings and earning potential of the financial institutions (Economist, 2011, pp. 169-199). The demand of low interest rate had been initiated from different businesses of the country and Central Bank had done the right thing. Unemployment Rate is one of the most important economic indicators from which one can analyze the financial competitiveness of a country. The unemployment rate of Germany lies in the congestion band from 4.6% to 6.1% from 2009 to 2014. Change in his article with the name of Globalization and Economic Growth found that the German Economy had a tough time in the past, but now the country is moving towards prosperity.
United Kingdom Analysis
The United Kingdom (UK), commonly known as Great Britain is a sovereign state located in the North Western Coast of Continental Europe. The UK is a developed country and has the 6th largest economy of the world in terms of Nominal GDP and 8th largest in terms of PPP. The country reported total GDP of US$ 2.490 trillion with per capita income of US$ 39,049 in the year 2013. The UK is one of those countries of the world which affected heavily during the current economic crisis and much of the financial sector of the country went on the verge of the bankruptcy (Baumohl, 2012, pp. 42-65). The GDP of the country reported negative growth in the year 2008 and 2009, and after that period minimal growth had been envisaged lies in the range from 0.4% to 0.8% in particular. However, the unemployment rate in the region is extremely high, like it was nearly 10% during the economic crisis and went on a level of 7.5% to 9% in the recent years. Inflation rate of the country managed on a specific level from 2.5% to 3.6% in total, which is a positive sign for the country . Likewise Germany, the UK also placed its key policy rate to a level below than 1% to boost the earning potential of the country. The country is now in the good financial health, and it will remain in the same financial health for a long span of time which has been furnished by Bamohli (2012).
France Analysis
France with the official name of the French Republic is basically a sovereign located in the Western Europe which also includes overseas regions and territories. France is known as the largest country located in the Western Europe and in the European Union. France is known as the 2nd biggest economy of European region. A labor and financial market of the country is growing tremendously well. The Gross Domestic Product (GDP) recorded by the country in the year 2013 was US$ 2.863 trillion with per capita income of US$ 44,730 (Baumohl, 2012, pp. 91-117). The country hit hard due to the current economic crisis and most of the banks of the country went bankrupt, due to which negative GDP had been recorded by the country in the year 2009. After this period, a significant amount of growth has been envisaged in the country in terms of their economic based consequences, which is extremely effective for the new companies which are wishing to enter in this region. Apart from the high amount of GDP, the interest rate of the country also lies in the single figure from last 5 years, merely to boost up the earning potential of banks and keep the money in rolling condition . The country is the favor to boost up their economic consequences and for the same provisions; it increases the stance of new companies to expand their business in the country to become economically active. This particular European economy would grow incredibly well in the near future and the same thing has been discussed by Herr & Kazandziska in the year 2011.
Austria Analysis
Austria with an official name of the Republic of Austria is basically a federal republic and landlocked country with total population of 8.47 million people. The country is located in Central Europe. Austria is known as one of the richest countries of the world and predominantly of the European region. The country is a developed country with high standard of living. The country reported GDP of 359 billion in the year 2013 with per capita income of US$ 42,083. Likewise other European countries, Austria had also suffered a lot during the current economic downturn. The GDP growth rate of the country was stagnant and it was in the congestion band from 0.8% to 1.3% from 2009 to 2013 (Herr and Kazandziska, 2011, pp. 54-71). The demand and supply side of the economy is in a good fence and the country has been regarded as an economically diverse country. Unemployment rate of the country was extremely high during the economic collapse which was 9.5% but it went down considerably with the year passes and came in the place of 8.1%. Inflation rate of the country is like the other European countries like 2.1% to 2.5%. The central bank of the country placed the interest rate of the country at a lower place in particular merely to increase the earning potential of the country. The research paper of Economist (2011) concluded this thing with perfection as the economy of Austria would growth considerably. With the help of effective policies, the country may get certain added advantage and effectiveness in a broad nutshell.
Conclusion
Different economies of the world had encountered different problems during the current economic crisis and the names of European countries are some of them, which had a tough time during the current economic downturn. There are four different countries which have been analyzed in this analysis and it is found that in recent times, these economies are doing exceptional job but at the time of economic crisis, these countries had not performed well.
Reference list
Chang, C. P., & Lee, C. C. (2010). Globalization and Economic Growth: A Political Economy Analysis for OECD Countries. Global economic review , 39 (2), 151-173.
Baumohl, B. 2012. The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities. London: FT Press.
Economist, T. 2011. Guide to Economic Indicators: Making Sense of Economics. 2nd ed. New York: John Wiley & Sons.
Herr, H. and Kazandziska, M. 2011. Macroeconomic Policy Regimes in Western Industrial Countries. Glasgow: Taylor & Francis.
