In international comparisons of national accounts statistics, such as GDP per capita, it is desirable to compensate for price disparities as well as to express the figures in a common currency. Failure to do so would lead to an overestimation of GDP for nations with high prices compared to countries with low prices.
Table 1 shows the volume indices of GDP per capita for each country in the left-hand column. The disparity in GDP per capita amongst EU Member States is striking. Luxembourg has the greatest GDP per capita of any of the 37 countries in this comparison, more than two and a half times that of the EU average. This is partly explained by the fact that a substantial number of foreign residents work in Luxembourg and thus contribute to the country’s GDP, despite the fact that they are not Luxembourg residents. Their consumer expenditure is reflected in their home country’s national accounts. Ireland’s high GDP per capita can be explained in part by the presence of huge multinational corporations with intellectual property. Contract manufacturing linked with these assets contributes to GDP, although a major portion of the revenue earned from this production is returned to the companies’ ultimate owners in other countries.
Why is Tajikistan so impoverished?
Tajikistan is located in Central Asia, between Afghanistan, China, Kyrgyzstan, and Uzbekistan, and is surrounded by a vast mountain range. Major oil and natural gas deposits have been discovered in Tajikistan in the last decade, rekindling hopes of reviving the country’s ailing economy and returning economic power to the Tajiks. Tajikistan had roughly 27.4 percent of its population living below the national poverty threshold as of 2018. The following are ten statistics about poverty in Tajikistan:
facts about poverty in Tajikistan
- Not all parts of the country are affected by poverty in the same way. In 2018, the poverty rate in Sugd’s northwest region was 17.5 percent. The Districts of Republican Subordination, just below, had a percentage of almost double that, at 33.2 percent.
- Poverty appears to be more acute in rural Tajikistan than in metropolitan areas. Cotton farming, one of Tajikistan’s principal cash crops, has been demonstrated to do little to reduce poverty levels or lift people out of poverty. Those with non-agricultural occupations in metropolitan regions like as Dushanbe, the capital, might move to Russia to find work. This happens frequently. In 2018, the poverty rate in urban Tajikistan was at 21.5 percent, while rural Tajikistan had a rate of 30.2 percent.
- In Tajikistan, the rate of poverty alleviation has slowed. Poverty rates fell from 83 percent to 31 percent between 2000 and 2015. Since 2014, the annual decrease in the national poverty rate has slowed to 1%.
- The lack of job creation and stagnant pay growth are to blame for the declining rate of poverty alleviation. Due to a lack of new and better opportunities to stimulate the economy, a large portion of the workforce seeks work in Russia, which does little to help Tajikistan’s economy.
- According to reports, 75% of households are concerned about covering their family’s basic needs in the coming year. Tajikistan is the poorest and most remote of the former Soviet Union’s sovereign states. More than 95 percent of households failed to meet the minimal level of food consumption to be considered appropriately sustained, according to the first nationally conducted study since the war ended and Tajikistan attained independence.
- Tajikistan has a high rate of stunting and malnutrition among children, which has been linked to insufficient access to clean water and food. Many families spend more money on drinking water than they can afford. For the 64 percent of Tajiks who live below the national poverty line, this means suffering additional costs on top of a daily income of less than $2.
- There are just 163 places to dwell for every 1000 people. With 1.23 million dwelling units, Tajikistan has the smallest housing stock in Europe and Central Asia. This is largely due to the government’s inability to offer public housing, while private owners lack the financial means to invest in or maintain their houses.
- Tajikistan’s population is 35 percent under the age of 15. This percentage is around 17% among the world’s wealthiest countries. A large number of young people in the population means more difficulties for the rising workforce as they try to make ends meet, especially in a place where the economy may not be able to respond. This might exacerbate Tajikistan’s economic stagnation, with disgruntled young workers fleeing to other countries, as many are already doing.
- It’s possible that up to 40% of Tajiks in Russia are working illegally. Tajikistan is reliant on Russian remittances. This is in addition to Russia’s increasingly stringent administrative procedures for foreign workers. Because of these two factors, the Russian Ministry of Internal Affairs’ estimate of one million Tajiks working in Russia per year is suspect. In Tajikistan, between 30 and 40 percent of households have at least one family member working overseas.
- As of 2015, Tajikistan had a literacy rate of 99.8%. Primary education is compulsory, and literacy is strong, albeit young people’s skill levels are declining. This is due to economic needs driving young people away from their education in pursuit of a source of income to help them meet their basic necessities.
Since attaining independence in 1991, Tajikistan has been working its way out of poverty. The country’s over-reliance on remittances, on the other hand, has caused its economy to stagnate. As a result, there is a hungry workforce and a scarcity of jobs to feed them. Gurdofarid is a non-profit organization that aims to empower Tajik women by teaching them the skills they need to find work in their own nation.
What accounts for Japan’s high GDP?
Japan has one of the world’s largest and most sophisticated economies. It boasts a highly educated and hardworking workforce, as well as a huge and affluent population, making it one of the world’s largest consumer marketplaces. From 1968 to 2010, Japan’s economy was the world’s second largest (after the United States), until China overtook it. Its GDP was expected to be USD 4.7 trillion in 2016, and its population of 126.9 million has a high quality of life, with a per capita GDP of slightly under USD 40,000 in 2015.
Japan was one of the first Asian countries to ascend the value chain from inexpensive textiles to advanced manufacturing and services, which now account for the bulk of Japan’s GDP and employment, thanks to its extraordinary economic recovery from the ashes of World War II. Agriculture and other primary industries account for under 1% of GDP.
Japan had one of the world’s strongest economic growth rates from the 1960s to the 1980s. This expansion was fueled by:
- Access to cutting-edge technologies and major research and development funding
- A vast domestic market of discriminating consumers has given Japanese companies a competitive advantage in terms of scale.
Manufacturing has been the most notable and well-known aspect of Japan’s economic development. Japan is now a global leader in the production of electrical and electronic goods, automobiles, ships, machine tools, optical and precision equipment, machinery, and chemicals. However, in recent years, Japan has given some manufacturing economic advantage to China, the Republic of Korea, and other manufacturing economies. To some extent, Japanese companies have offset this tendency by shifting manufacturing production to low-cost countries. Japan’s services industry, which includes financial services, now accounts for over 75% of the country’s GDP. The Tokyo Stock Exchange is one of the most important financial centers in the world.
With exports accounting for roughly 16% of GDP, international trade plays a key role in the Japanese economy. Vehicles, machinery, and manufactured items are among the most important exports. The United States (20.2%), China (17.5%), and the Republic of Korea (17.5%) were Japan’s top export destinations in 2015-16. (7 per cent). Export growth is sluggish, despite a cheaper yen as a result of stimulus measures.
Japan’s natural resources are limited, and its agriculture sector is strictly regulated. Mineral fuels, machinery, and food are among Japan’s most important imports. China (25.6%), the United States (10.9%), and Australia (10.9%) were the top three suppliers of these items in 2015. (5.6 per cent). Recent trade and foreign investment developments in Japan have shown a significantly stronger involvement with China, which in 2008 surpassed the United States as Japan’s largest trading partner.
Recent economic changes and trade liberalization, aiming at making the economy more open and flexible, will be critical in assisting Japan in dealing with its problems. Prime Minister Abe has pursued a reformist program, called ‘Abenomics,’ since his election victory in December 2012, adopting fiscal and monetary expansion as well as parts of structural reform that could liberalize the Japanese economy.
Japan’s population is rapidly aging, reducing the size of the workforce and tax revenues while increasing demands on health and social spending. Reforming the labor market to increase participation is one of the strategies being attempted to combat this trend. Prime Minister Shinzo Abe’s ‘Three Arrows’ economic revitalisation strategy of monetary easing, ‘flexible’ fiscal policy, and structural reform propelled Japan’s growth to new heights in 2013.
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Who in the United States has the best economy?
Utah is the most economically prosperous state in the country. Colorado, Idaho, Washington, and Massachusetts make out the top five states. Five of the ten states with the best economics are also among the top ten best states in the country.
Which state has the most prosperous economy?
California’s gross domestic product (GDP) was around 3.09 trillion dollars in 2020, making it the state that contributed the most to the country’s GDP that year. Vermont, on the other hand, had the lowest GDP in the country, with 32.8 billion dollars. What is Gross Domestic Product (GDP)?
What accounts for Texas’s high GDP?
3 In terms of employment and total energy production, Texas leads the way among states in the energy sector. Energy companies also contribute a disproportionate amount of GDP to overall employment, highlighting the industry’s importance to the Texas economy.
What is the wealthiest country in Europe?
Luxembourg is the wealthiest country in the European Union per capita, with a high quality of living for its residents. Luxembourg is a prominent hub for substantial private banking, with the finance sector accounting for the majority of the country’s GDP.
What is Europe’s poorest country?
**The transcontinental countries of Azerbaijan ($4,214) and Armenia ($4,268) would feature on the above list if they were counted as European countries rather than Asian countries.
Ukraine
Ukraine is the poorest country in Europe as of 2020, with a per capita GNI of $3,540. Ukraine was once the USSR’s second-largest economy. When the USSR fell apart, Ukraine struggled to adapt to a market economy, leaving a large portion of the population in poverty. Government corruption, Russian aggression (particularly, Russia’s unlawful invasion of Crimea in 2014), and a lack of infrastructure are all factors contributing to Ukraine’s poverty.
Georgia
Georgia’s GDP per capita in 2020 was $4,290, which was lower than any other European country save Ukraine. This former Soviet republic, which is located between Russia, Turkey, Armenia, and the Black Sea, is going through some difficult times. Its future, on the other hand, appears to be promising. Georgia’s economy and Human Development Index (HDI) score are both improving as a result of changes such as significant financial reforms, reduced corruption, and significant government investment in education.
Kosovo
Kosovo had a per capita GNI of $4,440 in 2020, making it the third poorest country in Europe, assuming it is a sovereign country and not an independent Serbian territory for the sake of discussion. Kosovo is a semi-autonomous province of Serbia that declared independence in 2008. Around 550,000 people live in poverty in Kosovo, which means that 30 percent of the population earns less than the poverty threshold. Furthermore, Kosovo’s unemployment rate is extraordinarily high, at 34.8 percent as of 2016, with the majority of households earning less than 500 Euros per month.
Moldova
Moldova, with a GNI per capita of $4,570 in 2020, is one of Europe’s poorest countries. Following the dissolution of the Soviet Union in 1991, Moldova endured political instability, economic decline, trade barriers, and other problems. Lack of large-scale industrialization, food insecurity, economic collapse during the transition to a market economy, and social policy blunders, among other things, all contribute to poverty in the country. Despite its recent difficulties, Moldova is improving, with the percentage of the people living in poverty falling from 30.2 percent to 9.6 percent between 2006 and 2015.
Albania
Albania’s Gross National Income (GNI) per capita is $5,210. Albania transitioned from a socialist to a capitalist market economy following the dissolution of the Soviet Union in the 1990s. Despite being Europe’s fifth poorest country, its economy is steadily growing. Albania’s vast natural resources, such as oil, natural gas, and minerals such as iron, coal, and limestone, are largely responsible for this.
North Macedonia
North Macedonia is Europe’s sixth poorest country. North Macedonia suffered major economic transformation after winning independence in 1991, and its economy has progressively improved. Around 90% of the country’s GDP is derived from trade. Despite the government’s successful implementation of programs, North Macedonia still has a high unemployment rate of 16.6%. The unemployment rate reached 38.7% at its peak. In 2020, North Macedonia’s per capita GNI was $5,720.
Bosnia and Herzegovina
Bosnia and Herzegovina’s GNI per capita in 2020 was $6,090. The country is currently recovering from its own war for independence from Yugoslavia, which lasted from early 1992 until December 1995. The conflict, as well as the ethnic cleansing that accompanied it, caused devastation on the people, infrastructure, and economy of the country. When the battle stopped, there were so many casualties that one out of every four houses was headed by a woman. Women make up a smaller percentage of the workforce in Bosnia and Herzegovina, and they are generally paid less than men, putting many families at a disadvantage. As a result, many families were forced to live in poverty.
Belarus
Following the dissolution of the Soviet Union, Belarus, like other former Soviet republics, had economic difficulties. Belarus had a strong economy and one of the highest living standards among Soviet republics in previous years. Belarus suffered economic difficulties over the next few years, until 1996, when it began to recover. Belarus’s spending among the bottom 40% of the population climbed between 2006 and 2011, when many nations in Europe were feeling the consequences of the recession. The country’s per capita GNI is expected to be $6,330 in 2020.
Serbia
Serbia’s per capita GDP is expected to be $7,400 in 2020. Serbia had eight years of economic expansion at the start of the 2000s, until the worldwide recession in 2008. Serbia’s economy entered a recession in 2009, resulting in negative growth rates of -3 percent in 2009 and -1.5 percent in 2012, pushing the country’s public debt to 63.8 percent of GDP. Around a quarter of the Serbian population is poor. Food and energy production, on the other hand, are thriving, and Serbia’s economic situation is improving.
Montenegro
The Gross National Income (GNI) per capita in Montenegro is $7,900. Montenegro’s economy is modest and mainly reliant on the oil sector. The country’s natural resources have been depleted as a result of urbanization and deforestation, making it vulnerable to resource depletion. Furthermore, discrimination based on gender and age results in significant economic disparities, notably for women. Approximately 50,000 people have been internally displaced or are refugees. They are among the poorest people in the country, with a poverty rate almost six times higher than the national average of 8.6%.
Is England more prosperous than France?
According to a significant analysis released today, Britain’s economy will vastly outperform France’s in the next 15 years.
According to independent think-tank the Centre for Economics and Business Research, the UK has a clear lead over its neighbor and historic competitor due to booming digital investment and Thatcher-era economic reforms (CEBR).
The UK economy will be 16 percent larger than France’s by 2036, according to the latest World Economic League Table, which looks at the prospects for all 193 countries. The UK’s is presently valued at 2.1 trillion, which is 3.6 billion more than France’s.
The findings will bolster Britain’s case in the competition for bankers and other highly qualified personnel with France.