Cooling growth in China and an economic trouble in Europe are adding to pressure on the Bank of Japan and the government to step up policy support as the economy struggles to recover from the pain of an April sales tax hike. Today’s graphic contains seven charts on key economic indicators of the Japanese economy.
GDP is a traditional headline economic indicator. Every three months we hear about the latest measurement of gross domestic production. But there are limitations to using GDP as a yardstick for economic output, such as:
- it doesn’t reflect depletion of natural resources used to achieve growth
- it measures goods not bads (e.g. pollution events)
- it doesn’t reflect harm by bads (e.g. overfishing which destroys a fishing stock)
- it doesn’t measure well-being, or the human capacity to maintain a growth rate
“From an economic viewpoint, a development path is sustainable if human well-being does not decline at any point along the path; part of this well-being is provided by the environment,” explains Dr. Kirk Hamilton of the London School of Economics.” GDP doesn’t measure whether a given rate of production is sustainable given the dependencies listed above. It’s a bit like only looking at revenue in an earnings report, when a company could be losing money on every widget it produces.” (more…)
Japan suffered its biggest economic contraction since the devastating March 2011 earthquake in the April-June quarter, as a sales tax hike took a heavy toll on household spending. Today’s graphic charts seven key indicators for the Japanese economy.
Analysts polled in July are less optimistic about the growth prospects in Latin America than they were three months earlier. Today’s graphic shows the projected GDP growth for Brazil, Mexico, Argentina and Chile.
The leaders of the BRICS economies are expected to sign a deal that creates a $100 billion bank and a reserves fund to challenge Western dominance over global finance. Today’s graphic shows the GDP, current account balance and exports for the five BRICS economies, compared to the United States.
Today’s graphic looks at the Russian economy under Vladimir Putin in six charts. This month marked the 10th year of Putin’s presidency. Read the full Reuters investigates special report on how Russia does business in the Putin era.
Irish bond yields dipped today after Moody’s raised the country’s rating by two notches on Friday, citing strong growth dynamics. At around 120% of GDP, Ireland still has one of the most bloated government debt burdens in the euro zone. Today’s graphic shows the long-term sovereign debt ratings for some of the world’s major economies.
Thailand is teetering on the brink of recession amid weak exports, a year-long slump in industrial output and a drop in tourism. Consumer confidence has also fallen to its lowest level in more than 12 years in April as the protracted political crisis that began in November continues to take a toll on Southeast Asia’s second-largest economy. Today’s graphic is a snapshot of Thailand’s economy.
While risks to the Asia-Pacific region’s growth outlook have eased, further shock to global financial markets from the U.S. tapering of stimulus and expected policy tightening, an uneven recovery in developed economies, and the possibility of slower growth in China as it aims to curb credit expansion would weigh on the region’s economic uptrend. Today’s graphic summarizes the Asian Development Bank’s latest forecast for Asia in four different charts.
Over the last decade, the center of rapid growth in India has shifted northward and inland, to the states of Madhya Pradesh, Chhattisgarh, Uttar Pradesh and Bihar. Today’s graphic looks at the change in GDP throughout different regions of India.