Macro economic assignment Essay Example | Topics and Well Written Essays - 2000 words

Macro economic assignment - Essay Example www.fxwords.com/g/gross-domestic-product-quarterly... For GDP Comparison we used http://www.demographia.com/db-ppp-uscan.htm Current Economic Arena This report highlights the current trends in the economy which are detrimental to the Future development in the sense that if the trends are not corrected will lead to a situation where many of the opportunities to develop form the needs of nations like the United States, and Europe will soon erode and be gone to eastern economies for ever. Canadian companies have been making headway in the IT sector and in the home business sector. Consumer and industrial production and investment are on the rise, but costs as shown by the trends and statistics are on the rise too. Thus development is offset by rising cost, low productivity and investments. We apprise you on the three key areas where detailed changes in policy are needed. 1. We have to attract more investment, and for this we need to develop better infrastructure. 2. We need to address the concern of services and development both in manpower and in infrastructure of the Information Industry in which we can become a major player in the next 5 years. 3. We need to, consequently address housing, and transport needs. All this is possible only with government spending and lesser or minimal taxation. Indicators to the analysis While GDP and nominal indicators are a sure way of determining our current position, as we can see below, by itself it is not enough to determine the policies we ought to set forth. Our GDP growth: Our GDP growth has been constant and fluctuates only between 4.8 and 6.3 percent especially as compared to the US. That should give us pleasure that we are truly developing. However the consumption patters, and rise of fuel...This is bad news for us. It is time we took steps to develop our infrastructure in such a manner that Canada can host software and technology parks and benefit from that, and attract overseas investments. The thrust therefore will be on these three things: Government Investments, Industry specific developments especially with regard to Information technology, and Education. We also will lay a matrix for upgrading public transport to cover for rising oil costs. Future development in the sense that if the trends are not corrected will lead to a situation where many of the opportunities to develop form the needs of nations like the United States, and Europe will soon erode and be gone to eastern economies for ever. Canadian companies have been making headway in the IT sector and in the home business sector. Consumer and industrial production and investment are on the rise, but costs as shown by the trends and statistics are on the rise too. Thus development is offset by rising cost, low productivity and investments. Our GDP growth: Our GDP growth has been constant and fluctuates only between 4.8 and 6.3 percent especially as compared to the US. That should give us pleasure that we are truly developing. However the consumption patters, and rise of fuel costs to over 4.9% within the last six months, and the availability of lesser infrastructure to develop is impeding the progress of the economy. While Canada was always investor friendly,