Country Statistics

By: EconomyWatch   Date: 30 June 2010

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Country data is compiled and presented by government entities as well as international organizations and associations. Country statistics are critical inputs for decision making and are used by:

 

  • Companies seeking to enter a new market. Country data helps in formulating marketing plans and setting up sales targets. 
  • People migrating to a country. 
  • Investors in the financial market. 
  • Governments that would want to tweak their policies to improve the country’s economic standing in the world. 
  • Economists and financial analysts who use country-specific information to make forecasts of a nation’s future trends.

Key Economic Country Data Points

There are mainly two types of economic indicators – leading and lagged. Leading economic indicators change before the economy changes. These are the most important type for businesses and investors, as they help in making predictions. A lagged economic indicator responds to changes in the economy. There is typically a lag of a few quarters. Some of the key economic indicators for a country are:

  • GDP growth: The gross domestic product (GDP) is the value of finished goods and services produced by a country during a specific period. This data includes investments and purchases made by the government. GDP growth reflects the economic progress of a nation. GDP growth impacts the outlook of businesses and investors.

  • CPI: The consumer price index (CPI) measures the price of consumer goods and services purchased during a given period. It reflects the cost of living and the inflation rate. Any change in the CPI has a direct impact on wages and salaries, pension and social security payments.

  • Unemployment rate: This indicator reflects the percentage of people who are without work. Unemployment impacts consumer spending and, in turn, company prospects.

  • Trade Balance: This is the difference between imports and exports. If a country’s has a negative balance of trade (imports are higher than exports), the nation faces a trade deficit and owes more money to others than it has realized through exports.

  • Stock market prices: This is a leading economic indicator, as the direction of the stock market is indicative of the direction the economy is likely to move in the near future.

  • Retail sales: This indicator measures the total receipts of retail stores and reflects the broad consumer spending patterns.

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