Figure 1
ECON 02 PT ASSIGNMENTS
1990-2019
Annual GDP per capita (at constant LCU) in Millions
Figure 1
Annual Gross Domestic Product per capita at Constant LCU of Saudi Arabia,
Germany and South Korea (1990-2019)
40,00
35,00
30,00
25,00
20,00
15,00
10,00
5,00
1990
1995
2000
Saudi Arabia
2005
Year 1990 - 2019
Germany
2010
2015
2019
South Korea
Note. This line chart illustrates the annual GDP per capita at constant LCU of Saudi
Arabia, Germany and South Korea from 1990 to 2019. From https://data.worldbank.org/
The per capita GDP shows how much economic production value can be
attributed to each individual citizen. Alternatively, this translates to a measure of national
wealth since GDP market value per person also readily serves as a prosperity measure,
of which annual GDP at constant lowest currency unit is indicative of a country’s Real
GDP, which is its GDP already adjusted to inflation. South Korea has a whopping
difference in contrast to Germany and Saudi Arabia, with over 10 million in difference
starting from 1990 and onwards until its peak in almost 35 million in 2019. Furthermore,
Germany and Saudi Arabia have GDPs that are in similar course toward each other.
Figure 2
Annual Gross Domestic Product per capita growth of Saudi Arabia, Germany and
South Korea (1990-2019)
14,00
12,00
Annual GDP per capita growth
10,00
8,00
6,00
4,00
2,00
0,00
-2,00
-4,00
-6,00
-8,00
1990
1995
2000
Saudi Arabia
2005
Year 1990 - 2019
Germany
2010
2015
2019
South Korea
Note. This line chart illustrates the annual GDP per capita growth of Saudi Arabia,
Germany and South Korea from 1990 to 2019. From https://data.worldbank.org/
The annual growth of GDP per capita from year-to-year forms a better analysis of
the countries’ economic growth, as opposed to the actual GDP due to adjusting to
preexisting economic bearing of the individual countries. It is observed that Saudi Arabia,
Germany and South Korea have quite similar course of growth rates, particularly in
consistent falls and rises which are natural for world economies. It can be observed that
the countries Germany and Saudi Arabia reach drops in growth rates almost
simultaneously in the years of 1994, when the Federal Reserve had set restrictive
monetary policies.
South Korea was struck by a currency and banking crisis in 1998, prompting the
country to seek IMF assistance. With the assistance of the IMF, South Korea was able to
escape the worst-case scenario and recover in 1999. The Great Recession, also known
as the Subprime Mortgage Crisis, began in 2008, when countries' growth rates fell. Only
once in 1998 does South Korea fall into the negative and unlike the other two nations, it
never falls below zero. This is advantageous because it may mean a lower risk of migrant
workers losing opportunities when working abroad during unexpected recessions.
2010-2019
Total Final Consumption Expenditure (at constant LCU)
in Quadrillions
Figure 1
Total Final Consumption Expenditure at Constant LCU of Saudi Arabia, Germany
and South Korea (2010-2019)
1,4000
1,2000
1,0000
0,8000
0,6000
0,4000
0,2000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Year 2010 - 2019
Saudi Arabia
Germany
South Korea
Note. This line chart illustrates the total final consumption expenditure at constant LCU
of Saudi Arabia, Germany and South Korea from 2010 to 2019. From
https://data.worldbank.org/
Final consumption expenditure consists of expenditure incurred by resident
institutional units on goods or services that are used for the direct satisfaction of individual
needs or wants, or the collective needs of members of the community.
However, just like the measurement of gross domestic product per capita, America's
big disparity in comparison to other countries is not to be taken seriously, since America's
Total Final Consumption Expenditure is 100 times and 400 times greater than Germany
and Saudi Arabia, respectively, to make a proper comparison. However, the degree to
which South Korea's slope is upward can be considered compared to the two other
countries.
Figure 2
Final Consumption Expenditure as a Percentage of GDP of Saudi Arabia,
Germany and South Korea (2010-2019)
Final Consumption Expenditure (as a % of GDP)
80,00
70,00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Year 2010 - 2019
Saudi Arabia
Germany
South Korea
Note. This line chart illustrates the final consumption expenditure as a percentage of
GDP of Saudi Arabia, Germany and South Korea from 1990 to 2019. From
https://data.worldbank.org/
A significant amount of money is invested in a country's final consumption. Final
consumption expenditure is expenditure by resident institutional units - including
households and enterprises whose main economic center of interest is in that economic
territory - on goods or services that are used for the direct satisfaction of individual needs
or wants or the collective needs of members of the community.
Germany maintain the highest percentage of final consumption expenditure. Saudi
Arabia took over South Korea with 70% at 2015. In 2017, South Korea takes back Saudi
Arabia in the Percentage GDP in Final Consumption Expenditure. Germany percentage
is very constant unlike the two other countries.
Final Consumption Expenditure (annual % growth)
Figure 3
Annual Percentage Growth of Final Consumption Expenditure of Saudi Arabia,
Germany and South Korea (2010-2019)
12,00
10,00
8,00
6,00
4,00
2,00
0,00
-2,00
-4,00
-6,00
-8,00
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Year 2010 - 2019
Saudi Arabia
Germany
South Korea
Note. This line chart illustrates the annual percentage growth of final consumption
expenditure of Saudi Arabia, Germany and South Korea from 1990 to 2019. From
https://data.worldbank.org/
Saudi Arabia tries to continue to show highest in numbers of total final consumption
expenditure, South Korea and Saudi Arabia is very consistent in their final consumption
expenditure, which shows promising opportunities for economic growth in the long-run
period. Moreover, Saudi Arabia dropped the growth rate of final consumption expenditure
than the rest of the countries in 2016, indicating unstable growth in its overall expenditures
annually which is a bad sign of progress. However, Saudi Arabia was able to pull back up
later on. Therefore, in terms of opportunities generated by final consumption expenditure,
Saudi Arabia is desirable in the long-run.