COMPARATIVE ANALYSIS OF THE GROWTH ECONOMY OF CANADA AND INDONESIA Essay

COMPARATIVE ANALYSIS OF THE GROWTH ECONOMY OF CANADA AND INDONESIA OVER THE LAST THREE YEARS - Essay Example The growth rate has been attributed due to the following economic boosters. Industry accounts for the biggest portion of GDP, comprising of a forty six and a half percent of total GDP. The nation has boosted the growth of industry sector due to favorable policies that encourage investment in the sector. Within the industry sector, the most imperative is manufacturing, which constitutes and has been the main growth force with a 24 percent of the entire output. During that period started there was stable steady growth in 1st half (2010-2011), then a moderately decline to s table rate for the second half (2011-2012) of the period. Mining and quarrying segment of the industry accounts for approximately percent while construction and infrastructure account for ten percent (10%) and water supply, electricity, and gas accounted for 0.75 percent. Services comprise of 38 percent of entire GDP. Within services, the key important and lead generators and boosters of Indonesia economy are trade, restaurants and hotels forming approximately 14 percent of GDP while communication and transport constituted a seven percent of GDP. The other services contributors comprised of finance, real estate and commercial services jointly accounting for 7 percent of GDP and lastly government services at 6 percent of the GDP (Trading Economics 2013). The last sector with considerable effect on the economy is Agriculture, which accounts for the remaining fifteen percent. This page contains. For the last three years, the annual growth rate has varied from 5.43 percent to 6.9 percent; with a remarkable constant growth rate of 6.5 percent between 2011 and 2012. It is evident the second half of the period had a moderate stable economy growth having attained highest growth rate in the previous phase. Indonesian economy remained stable at averagely 6.5 for the second half of the period. This is attributed to government proper planning of priorities having suffered an economic relapse end of 2011. G lobalization has a bigger influence on industry segment; this could be viewed as the propelling force of stable economic growth of Indonesia. A surge in administration spending was not sufficient to offset a hold up in investment due to global economic challenges, hurt by higher borrowing expenditures as the central bank increased the interest rate by one hundred and fifty bps for sometimes. The downward trend of economic growth in Indonesia can be attributed to economic factors affecting the world (Trading Economics 2013). Canada GDP Growth Rate Canada’s Gross Domestic Product (GDP) for the last three years has been at an average of 0.79 with the lowest rate in witnessed in the second half of the period. GDP Growth Rate in Canada is documented by the Statistics Canada. From 1961 to 2013, Canada GDP Growth Rate approximated at 0.8 Percent attaining an all era high of 3.3 and a record low of -1.8. Canada's economy is highly developed and diversified. The pillar of Canadian eco nomy is an international trade, and US is by far the country's biggest trade partner. The9/11 effects could have played a role in a drastic drop in growth for the subsequent years. Recession has been a contributing factor in nations being cautious with the spending. Being a foreign trade based economy, international challenges affect Canada directly. Foreign trade is accountable for approximately 45 percent of the nation's GDP. Canada is among the few