Assignment 2: Economic Indicator Comparison between India and Papua New

Guinea --Sunil Shingala (189278034)

Economic Indicators
GDP Papua New Guinea India Comments
GDP Annual Growth Rate 2.2 % 8.2 % GDP per capita is good indicator to
GDP 21.09 USD Billion $2.611 trillion compare two countries’ wellbeing
2402 USD $2597 USD and both countries GDP per capita
GDP per capita
is almost same, but by PPP basis
GDP From Agriculture 22.1% 15.11
India’s wellbeing is as twice than
GDP From Construction 42.9% 31.12% PNG. Real exchange rate of India is
GDP From Manufacturing 35% 53.77% lower than the nominal rate.
GDP per capita PPP 3823 $USD 6427 $USD
Labour Papua New Guinea India India has higher unemployment
3.6 % 8.8 % than PNG largely due to very large
Unemployment Rate population which shows unused
41.9 $/Week 18 $/Week labour capacity utilization.
Minimum Wages
Labour Force 3.681 million 521.9 Million
Prices Papua New Guinea India Inflation of India is lower which
Inflation Rate 5.2 % 3.77 % indicate stable pricing and helps in
0.3 % 0.51 % stabilizing economy.
Food Inflation
Money Papua New Guinea India India has much higher broad
Interest Rate 6.25 % 9.45 % money than PNG which shows
0.6 % 6.5% higher multiplier effect and
Deposit Interest Rate
increased bank lending.
$1779 USD Million 392.080 USD
PNG is Net export country so
Foreign Exchange Reserves Billion
higher exchange rate helps it while
Narrow Money $5.495 billion $429.3 billion
as India is net importer country so
Broad Money $7.649 billion $2.063 trillion high exchange rate helps it to
3.25 Kina 72.1 Rupee improve export.
Exchange rate( 1 USD =)
Trade Papua New Guinea India PNG has net export country while
Balance of Trade $7.648 billion $-127.5 billion India has net import country.
$9.526 billion $299.3 billion Which increases trade deficit of
Exports
the country.
Imports $1.878 billion $426.8 billion
Current Account $3.966 billion $ -51.21 billion
Current Account to GDP 15.3 % -1.9 %
Gold Reserves 2 Tonnes 573 Tonnes
Government Budget Papua New Guinea India Both country’s government
$ 3.649 Billion $229.3 billion spending is higher than the total
Revenue revenue results in budget deficit
Expenditure $4.763 billion $330.3 billion and increase in total debt.
-5.1% of GDP -4.1% of GDP
Budget Surplus & deficit
32.6% of GDP 70.2% of GDP
Public Debt
Taxes Papua New Guinea India India has higher corporate tax
Corporate Tax Rate 30 % 34.61 % reduce corporate profit while PNG
42 % 35.88 % has higher personal tax.
Personal Income Tax Rate

Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/print_pp.html
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/print_pp.html
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html