Macroeconomic Data Analysis and Report Essay Example | Topics and Well Written Essays - 750 words - 2

Macroeconomic Data Analysis and Report - Essay Example It is important to note that the population growth rate is an important factor in gauging the economic performance of a state and by taking the case of these two countries it will be easy to establish their economic trends. If this is presented in a table form or graphically the trend will give an insight into the economic characteristics of the two countries. Exchange rate is vital in comparing the strength of the currency between the countries and this is an index of measuring level of economic growth holding other factors constant. Purchasing power parity is important in measuring the inflation rate between the two states under case study. The ratio of gross national product to gross domestic product is important in providing a ground for estimating the amount of income that is repatriated to other countries. Bigger ratio means unfavorable productivity of the country and overdependence on foreign capital and skilled manpower. To explain the economic growth and development parity b etween these two states needs to be presented in graphs. The figure one above shows that the exchange rates between the two states have a wide gap and this is consistent across the three years. It is important to note that UK is more developed and economically stable as reflected by its comparatively lower exchange rate than Saudi Arabia. Considering the figures of exchange rate across the years shows some changes for United Kingdom while Saudi Arabia has a constant exchange rate which hints stable currency and consistent economic growth than in UK (Sarno & Taylor, 2005, 98). United Kingdom has a high population which presents a strain on the existing resources but considering the geographical size of the state. The point of concern in this case is the trend in population growth. The rate of population increase is high for Saudi Arabia than UK and this present expansionary threat to Saudi Arabia as the population will put steady