Examples Of Economic Environment Analysis

978 Words4 Pages
In Economic and Social Environment analysis, we will discuss and analyse the key economic and social indicators in that country such as GDP, GDP / capita, trade volume, population and wages of both Indonesia and Thailand. Indonesia: Indonesia’s economy has expanded greatly over the past decades, the strong pace of growth has made Indonesia an important part of the global economy. It is now the 4th largest economy is East Asia – after China and Japan and South Korea – and the 15th largest economy in the world on a purchasing power parity (PPP) basis. The future forecasts for Indonesia’s economic development are still positive due to prolonged global uncertainty. Authoritative international institutions such as World Bank, IMF and Asian Development…show more content…
China plays a major role in the sluggish global economic growth. After rebounding from the global great recession in 2007 to 2009, the pace of worldwide economic growth slowed between 2010 and 2014 and the world's second-largest economy grew 7.3% in 2014. China’s declining economic expansion has an immediate impact on Indonesia as both countries are important trading partners. In addition, the recent global economic slowdown resulted in commodity prices falling to multiple-year lows. Being a major commodity exporter (and lacking a well-developed downstream industry), Indonesia's export performance is affected heavily in times of low commodity prices, for example, coal and palm oil. Low commodity prices are not only caused by weaker global demand but also because of an oversupply. Composition of Indonesia's GDP Indonesia changed from being an economy highly dependent on agriculture into a more balanced economy in which the share of manufacturing exceeds that of agriculture. This also implies that Indonesia lessened its traditional dependency on primary exports. However, all three main sectors of Indonesia underwent expansion throughout…show more content…
The country is one of the leading producers and exporters of rice and also has rubber, sugar, corn, jute, cotton and tobacco as major crops. However, agriculture's contribution to the GDP has relatively declined, while the exports of goods and services has increased. On the other hand, the manufacturing sector accounts for over 40% of the GDP and is well diversified while the tertiary sector, including tourism and financial services, contributes to over 45% of the GDP and employs nearly 40% of the

More about Examples Of Economic Environment Analysis

Open Document