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Assignment Number: 01

Student Name/s and IDs:

Mubasher Abdul Majeed Khan
F2022001003

Subject Name: Macroeconomics

Section: B
Name of the Resource Person: Dr. Farhat Rasul
Due Date: 25/03/2024

BS Aviation Management (BS AM)

Institute of Aviation Studies (IAS)
University of Management and Technology (UMT), Lahore
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Comparative Analysis of Economic Performance

GDP Per Capita (current US$) for Developing Countries

4750
4250
3750
3250
2750
2250
1750
per capita in $

1250
750
250
2017 2018 2019 2020 2021 2022
India 1957.96981329 1974.377731 2050.1638 1913.219733 2238.127142 2410.888021
558
Pak- 1567.640612 1620.742591 1437.165833 1322.314785 1506.108293 1588.879829
istan
Sri 4388.20190593 4360.58473469 4082.69404871 3852.38909102 3996.57199501 3354.38340757
Lanka 728 252 533 194 251 565

Figure 1: GDP per capita for developing countries

GDP Per Capita (current US$) for Developed Countries

85000
75000
65000
55000
45000
35000
25000
Axis Title

15000
5000
2017 2018 2019 2020 2021 2022
Canada 45129.4293 46548.63841 46374.15275 43562.43583 52515.19984 55522.44569
Japan 38834.05293 39751.1331 40415.95676 40040.76551 40058.53733 34017.27181
Unitid 59907.75426 62823.30944 65120.39466 63528.6343 70219.47245 76329.58227
States

Figure 2: GDP per capita for developed countries

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To identify the comparative performance of the two countries, let's select Japan and India for
comparison.

Comparing the GDP per capita values of Japan and India over the specified years:

Countries 2017 2018 2019 2020 2021 2022

Japan $38,834.05 $39,751.13 $40,415.96 $40,040.77 $40,058.54 $34,017.27

India $1,957.97 $1,974.38 $2,050.16 $1,913.22 $2,238.13 $2,410.89

Comparative Performance:

Growth Rate: India has shown a higher growth rate in GDP per capita compared to Japan over
the specified years. The GDP per capita in India has been consistently increasing, albeit with
fluctuations, while Japan's GDP per capita has remained relatively stable, with a slight decline in
recent years.

Economic Structure: Japan has a highly developed and diversified economy, with strong
industrial and technological sectors. However, it also faces challenges such as an aging
population and slow population growth, which can impact economic growth. India, on the other
hand, has a large and diverse economy with a growing population and a significant emphasis on
services and information technology sectors. This demographic dividend, along with ongoing
economic reforms, has contributed to India's higher growth rate.

Policy Measures: Japan has implemented various economic policies over the years to stimulate
growth, including monetary easing and fiscal stimulus packages. However, the effectiveness of
these measures may be limited due to structural factors such as demographic challenges. India
has also implemented economic reforms aimed at boosting growth, including initiatives to
improve ease of doing business, attract foreign investment, and promote manufacturing and
infrastructure development

Global Factors: Both countries are influenced by global economic trends and events. Japan, as
an export-oriented economy, is impacted by global demand for its goods and services, while
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India's growth is influenced by factors such as global commodity prices, foreign investment
flows, and geopolitical developments.

Higher Performance Regimes:

Japan: Japan's higher performance regime can be attributed to its well-developed infrastructure,
strong industrial base, technological innovation, and highly skilled workforce. Additionally, its
stable political environment and focus on research and development contribute to its economic
resilience.

India: India's higher performance regime stems from factors such as its demographic dividend,
large domestic market, ongoing economic reforms, and increasing integration into the global
economy. The country's emphasis on digitalization, entrepreneurship, and innovation also plays a
significant role in driving growth.

In summary, while Japan maintains a stable and developed economy, India demonstrates higher
growth potential driven by its demographic advantage, economic reforms, and expanding market
opportunities. Both countries face unique challenges and opportunities, and their comparative
performance reflects the interplay of various economic, social, and political factors.
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GDP Growth (annual %) for developing Countries

12.5

7.5
growth rates

2.5

2017 2018 2019 2020 2021 2022

India-2.5 6.8 6.45 3.87 -5.83 9.05 7.24
Pakistan 4.43 6.15 2.5 -1.27 6.51 4.71
Sri Lanka 6.46 2.31 -0.22 -4.62 3.51 -7.82

-7.5

Figure 3: GDP Growth rates for developing countries

GDP Growth (annual %) for Dveloped Countries

3
growth rates

2017 2018 2019 2020 2021 2022

Canada -1 3.03 2.74 1.91 -5.04 5.29 3.82
Japan 1.68 0.64 -0.4 -4.15 2.56 0.95
Unitid States
-3 2.24 2.95 2.29 -2.77 5.95 1.94

-5

Figure 4: GDP growth rates for developed countries

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Comparing the GDP per capita values of Japan and India over the specified years:

Countries 2017 2018 2019 2020 2021 2022

Japan 1.68 0.64 -0.4 -4.15 2.56 0.95

India 6.8 6.45 3.87 -5.83 9.05 7.24

Comparative Performance:

Japan vs. India:

India consistently shows higher GDP growth rates compared to Japan over the specified years,
indicating India's faster economic expansion. However, Japan's growth rates have been relatively
stable, albeit with some fluctuations.

Factors Contributing to Higher Performance:

India: India's higher growth rates can be attributed to factors such as its large and young
population, expanding middle class, ongoing economic reforms, and increasing foreign
investment. Additionally, sectors like information technology, manufacturing, and services
contribute significantly to India's economic growth.

Japan: Japan's slower growth rates are influenced by factors such as its aging population,
limited immigration, and mature economy. However, Japan maintains a high standard of living,
advanced technology, and strong industrial base despite its lower growth rates.

Policy Measures:

India: The Indian government has implemented various policies aimed at promoting economic
growth, including infrastructure development, tax reforms, and initiatives to boost manufacturing
and entrepreneurship.

Japan: Japan has employed measures like monetary easing, fiscal stimulus packages, and
structural reforms to address economic challenges and stimulate growth.
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Global Factors:

Both countries are affected by global economic trends and events, such as trade tensions,
geopolitical developments, and economic shocks. However, India's growth is also influenced by
factors like global demand for its exports and remittances from abroad, whereas Japan's growth
is more reliant on domestic consumption and investment.

In summary, India demonstrates higher GDP growth rates compared to Japan, driven by factors
like demographic advantage, economic reforms, and increasing integration into the global
economy. Japan, while experiencing slower growth, maintains a stable and advanced economy
supported by its technological prowess and strong industrial base.
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GDP Per Capita Growth (annual %)

12.5

7.5
Axis Title

2.5

1966 1972 1982 1992 2002 2012 2022

India -2.5 -2.2 -2.7 1.2 3.3 2 4.1 6.5
Pakistan 3.1 -1.8 2.2 4.9 0.1 1.2 2.7
Sri Lanka 2.6 -2.4 2.5 3.2 2.9 7.8 -7.9
Canada -7.5 4.7 4.3 -4.3 -0.3 1.9 0.7 1.9
Japan 9.6 6.9 2.6 0.5 -0.2 1.5 1.4
Unitid States 5.3 4.1 -2.7 2.1 0.8 1.5 1.6

GDP Growth (annual %)

12.5

7.5
Axis Title

2.5

1966 1972 1982 1992 2002 2012 2022

India -2.5 -0.1 -0.6 3.5 5.5 3.8 5.5 7.2
Pakistan 5.8 0.8 6.5 7.7 2.6 3 4.7
Sri Lanka 5 -0.4 4.1 4.4 4 8.6 -7.8
Canada -7.5 6.7 5.5 -3.2 0.9 3 1.8 3.8
Japan 10.6 8.4 3.3 0.9 0 1.4 1
Unitid States 6.5 5.3 -1.8 3.5 1.7 2.3 1.9