Economic Growth (CIE IGCSE Economics)

Mali is a developing country. Its Human Development Index (HDI) rose from 0.297 in 2000 to 0.442 in 2016. Most of Mali’s workers are employed in agriculture and cotton is the country’s main agricultural crop. The country’s main export, however, is gold. The country is the third largest exporter of gold in Africa.

Discuss whether or not an increase in the size of a country’s gold mining industry will benefit an economy

A local manufacturer of medicines (pharmaceuticals) in Nigeria wants to expand which will increase the contribution of this industry to the Gross Domestic Product (GDP) of the country. This firm’s expansion may enable Nigeria to reduce its dependence on imports of medicines and may make medicines more affordable. To ensure success, however, the firm will need to increase its investment in research and development.

Discuss whether or not a reduction in imports is beneficial to an economy.

Discuss whether or not building a new city will benefit an economy.

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In February 2017, China’s central bank raised the rate of interest. It wanted to reduce borrowing and the growth of the money supply, but it was worried that the rise in the interest rate might reduce the country’s economic growth rate. The change in interest rate is likely to have increased the workload of skilled commercial bank workers.

Discuss whether or not a rise in the rate of interest will reduce economic growth.

The economic problem results in people having to make choices. In Bulgaria, in recent years, people have changed how much they spend. The Bulgarian government is encouraging people to spend more. It is trying to ensure that deflation does not return and that the country will continue to experience an increase in output.

Discuss whether or not a country will suffer if its output falls.

Discuss whether or not the Russian government should have been concerned about the state of the Russian economy in 2016.

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The Malaysian government implemented the Vision 2020 policy which aims to make Malaysia a developed country by the year 2020. Along with this vision, the National Privatisation Policy was also implemented whereby various firms, such as those involved in telecommunications, were privatised. Poverty has significantly reduced since the implementation of these policy measures.

Discuss whether or not moving firms from the public sector to the private sector will benefit an economy.

A relatively high proportion of people from the Philippines either work in call centres or abroad. Call centres employ 1.2 million people in the Philippines and account for 8% of the country’s Gross Domestic Product. Due to the time difference with the US, the main market for call centre services, many Filipinos have to work at night. The call centres are introducing new technology including robots.

Discuss whether or not advances in technology benefit an economy.

More than 80% of Qatar’s population are immigrants. Net immigration has helped to meet the country’s demand for labour. As well as a shortage of workers, the country has a shortage of drinking water. The government has run public campaigns to stop people using their free supply of drinking water to fill their swimming pools and water their gardens. In 2016, the government increased its spending to increase the country’s economic growth rate.

Discuss whether or not increased government spending will increase economic growth.

Explain, using information from the extract, two causes of economic growth in New York.

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Explain, using information from the extract, the possible negative effects of economic growth in New York.

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The Saudi Arabian government is encouraging the growth of the private sector. It is a low-cost oil producer, but its exports to South Africa have fallen recently. South Africa has a floating foreign exchange rate, but its central bank has recently tried to prevent a large fall in its foreign exchange rate.

Explain two benefits a government may gain from the growth of the private sector.

Explain, using information from the extract, two reasons, apart from changes in employment, for Iceland’s high economic growth rate from 2002 to 2007.

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Wage rate growth has increased recently in Kazakhstan, but its economic growth rate has slowed. This is, in part, due to a fall in exports. To try to increase the economic growth rate, the government has increased its spending on investment. In August 2015, it adopted a floating foreign exchange rate system in an attempt to improve the country’s macroeconomic performance.

Analyse how a rise in investment could increase a country’s economic growth rate.

Ireland has attracted a significant number of foreign multinational companies (MNCs) to set up production in the country. These firms employ approximately 10% of the country’s labour force and make a high proportion of Ireland’s exports. The surplus on the current account of Ireland’s balance of payments fell in 2016 while government spending rose.

Analyse how an increase in exports could improve a country’s economic performance.

Discuss whether or not the Russian government should have been concerned about the state of the Russian economy in 2016.

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World output has grown in recent years, but a number of countries have experienced a recession. The removal of trade restrictions such as import tariffs has slowed down, reducing the growth of world trade.

Analyse how a recession may reduce a country’s imports.

Analyse how good transport links have contributed to Istanbul’s economic growth.

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