group assignment topic gdp inflation between vietnam with us

Compared with the period 1991-2000, the size of the economy has increased significantly both in terms of absolute quantity of 1%, as well as the average growth rate per year still reache

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GROUP ASSIGNMENT [ECO121]

TOPIC: GDP & Inflation between VietNam with US

Group members: 5 Instructor: Doan Hai Nhan

Name of group member Code Contribution

(%)

Cần Thơ, 3/ 202 2

Table of content

I) GDP between Vietnam and the US in two periods 2001-2010 and 2011-2020 2

a) GDP of VietNam in 2001-2010 2

b) GDP of VietNam in 2011-2020 2

c) GDP of US in period 2001-2010 4

d) GDP of US in period 2011-2020 4

e) Compare GDP between VietNam with US in two periods 2001-2010 and 2011-2020 5

II) Inflation between Vietnam and the US in two periods 2001-2010 and 2011-2020 6

a) Inflation of VietNam in period 2001-2010 6

b) Inflation of VietNam in 2011-2020 6

c) Inflation of the US in period 2001-2010 7

d) Inflation of the US in period 2011-2020 8

e) Compare inflation between VietNam with US in two periods 2001-2010 and 2011-2020 9

III) The reason why GDP and inflation varies 9

1) Definition of GDP 9

a) Nominal GDP 9

b) Real GDP 10

c)Nominal GDP versice real GDP 10

2)Definition of inflation 11

IV)List of references 13

I) GDP between Vietnam and the US in two periods 2001-2010 and 2011-2020

a) GDP of VietNam in 2001-2010

According to General Statistics Office Viet Nam (2011) During the ten years of 2001-2010, every year, Vietnam's economy achieved a relatively good growth rate (in 2001 it increased by 6.89%; in

2002 it increased by 7.08%; in 2003 it increased by 7.34%; in 2004 it increased by 7.79) %; 2005 increased by 8.44%; 2006 increased by 8.23%; 2007 increased by 8.46%; 2008 increased by 6.31%;

2009 increased by 5.32% and is estimated to increase by 6.78% in 2010 Calculated, in the ten years 2001-2010, the average gross domestic product increased by 7.26% every 9 years, of which, the 5-year economic development plan 2001-2005 increased by 7.51%/5-year The 5-5-year socio-economic development plan 2006-2010 increases by 7.01%/year Compared with the period

1991-2000, the size of the economy has increased significantly both in terms of absolute quantity of 1%, as well as the average growth rate per year still reaches 7.26%, approximately growth of 7.56%/year of the Strategy for Socio-Economic Stability and Development 1991-2000, this is a very important achievement With such a growth rate, during the past ten years, Vietnam, compared to some countries

in the region, is only behind China and India, higher than Korea, Thailand, Singapore, Indonesia, Malaysia and South Korea Philippines Calculated, in the ten years 2001-2010, the average gross domestic product increased by 7.26% every 9 years, of which, the 5-year socio-economic development plan 2001-2005 increased by 7.51%/year The 5-year socio-economic development plan 2006-2010 increases by 7.01%/year

Therefor we can see that GDP growth rate from 2001 to 2007 always increased from 6.9% to 8.46% But in 2008 it decreased to 6.31%, in 2009 it decreased by 3.32%, then in 2010 it increased to 6, 78% Thus, in the first year of the 21st century, the growth rate increased steadily from year to year and remained stable, but in 2008, the growth rate decreased sharply

b) GDP of VietNam in 2011-2020

According to General Statistics Office Viet Nam (2011) the growth rate of gross domestic product in

2011 was lower than the growth rate of 6.78% in 2010, but in the context of very difficult production

situation and the whole country focused on controlling inflation and stabilizing the macro-economy The above growth rate is quite high and reasonable In 2012, the GDP of the whole country increased

by 5.03%, although GDP growth was lower than the set target, but in the context of the world and domestic economic situation, the country's GDP increased by 5.03% Despite difficulties, this year's GDP growth is also a remarkable result GDP in 2013 is estimated to increase by 5.42% compared to

2012 This year's growth rate is lower than the set target of 5.5% but higher than the growth rate of 5.25% in 2012 and there are signs of recovery

gross domestic product (GDP) in 2014 is According to General Statistics Office Viet Nam (2016)

estimated to increase by 5.98% compared to 2013 GDP growth this year is higher than the rate an increase of 5.25% in 2012 and an increase of 5.42% in 2013 showed positive signs of the economy Our economy in 2015 continued to have positive changes and recovered clearly in many areas field, achieve growth results quite high compared to the set target and compared with the growth rate of previous years in the period 2011-2015 GDP in 2015 is estimated to increase by 6.68% compared to

2014 The GDP growth rate in 2016 is lower than the growth rate though 6.68% of 2015 and did not meet the set growth target of 6.7%, but in the context of unfavorable world economy, falling global prices and trade, domestic difficulties due to weather If the marine environment is complicated, achieving the above growth rate is a success Gross domestic product (GDP) in 2017 is estimated to increase by 6.81% compared to 2016, This year's growth rate exceeds the target set by 6.7% and higher than the growth rate of the years from 2011-2016 The national GDP in 2018 increased by 7.08%, far exceeding the target assigned by the National Assembly of 6.7% This number affirms the timeliness and effectiveness of the solutions promulgated by the Government, drastically directed at all levels, branches and localities to make efforts to implement The economy has grown for the second year in a row over 7%, lower than 2018 but higher than the previous 10 years

Gross domestic product (GDP) in 2019 increased by 7.02%, exceeding the target set by the National Assembly in the range of 6.6-6.8% and also higher than the forecast of many international organizations.2020 is a year of great difficulties and challenges for the world economy in general, including Vietnam The world economy is forecasted to have the most severe recession in history, with the growth of major economies all falling deeply due to the negative impact of the Covid-19 epidemic However, Vietnam's economy still maintained its growth with an estimated GDP growth rate of 2.91%

c) GDP of US in period 2001-2010

the United States is the world's leading

about 30% of the total GDP of the entire world economy However, in recent years, the proportion of the US economy in the world economy has decreased, this proportion in 2008 was 23.79% - the lowest level in the past 20 years, down 8% compared to with 2001 The average growth rate of the US economy decreased from 3.42%/year (from 1991-2000) to 1.61%/year (from 2001-2010) while the average growth rate of the world economy increased from 3.07%/year (1991-2000) to 3.2%/year (2001-2010) During the past 10 years, the US economy has continuously had a growth rate lower than the average rate of the whole world The value of the dollar decreased, as of September 2009, the dollar has depreciated 10% compared to December 2005 and 18% compared to December 2000

From the chart above showing the value of GDP of the United States from 2001 to 2010 we can see that the value increases steadily every year The year with the highest value was 2010 with a value of 14.99 trillion dollars

d) GDP of US in period 2011-2020

According to trading economics (2021) the nominal GDP of the United States was $19.5 trillion in

2017 After adjusting for the year, nominal GDP for the first quarter of 2018 was $20.1 trillion, marking the first time in history that the US nominal GDP exceeded the $20 trillion level People's spending accounts for roughly 70% of GDP, while business investments account for 18% and government spending accounts for 17% (including federal, state, and local governments but excluding wire transfers, such as Social Security being consumed), net exports fell to -3% as a result of the US trade deficit The indices that measure production and income both grew 2.3% in 2017, compared with 1.5% in 2016 and 2.9% in 2015 Real GDP quarterly adjusted for growth 2.2% in Q1 2018, 4.2%

in Q2 2018, 3.4% in Q3 2018 and 2.2% in Q4 2018; in which the second quarter growth rate was the highest since the third quarter of 2014 At the same time, the total growth rate of 2.9% in 2018 was the highest in a decade In 2020, the GDP growth rate began to decline due to the impact of the

COVID-19 pandemic, causing a quarter-on-quarter GDP decline of 5.0% in the first quarter of 2020 and a decrease of 32.9% in the second quarter of 2020

In 2017, average real GDP (calculated at the 2009 US dollar exchange rate) was $52,444 marking a continuous positive growth rate since 2010 Average GDP has averaged 0.7% growth rate in the 2000s and 0.9% between 2010 and 2017.The GDP per capita of the United States is the 20th highest out of 220 countries in 2017 Among the current US Presidents, the Bill Clinton administration has achieved the highest growth rate in terms of GDP growth rate actual accumulation over 2 terms, Reagan ranked 2nd and Obama ranked 3 rd

e) Compare GDP between VietNam with US in two periods 2001-2010 and 2011-2020

We can observe the gap in GDP between the two nations based on the numbers you supplied Vietnam makes 88.5 percent less than the United States In 2020, the United States had a GDP per capita of

$63,544, while Vietnam had a GDP per capita of $2,786 The United States now has the largest economy in the world, with GDP accounting for over 30% of global GDP To the degree that the 50 states of the country are economically similar to other countries With a GDP of more than $186 billion last year, Vietnam is equal to the state of South Carolina, which has a GDP of $190 billion and ranks 27th in wealth in the United States

when we look at 2020, we can see the opposite is happening, due to the impact of the Howerver,

pandemic, 2020 is considered to be the worst year for the US economy in recent years For the whole year of 2020, the US economy lost 3.5% - the sharpest decline since 1946 and also the first time US annual GDP fell since the Great Recession (2007 - 2009) As for Vietnam, in 2020, GDP will increase

by 2.91%, although this is the lowest increase in recent decades, but in the context of the complicated development of the Covid-19 epidemic, the statistics agency considers it a great success

II) Inflation between Vietnam and the US in two periods 2001-2010 and 2011-2020

a) Inflation of VietNam in period 2001-2010

In 2000, 2001, the CPI growth rate was very low, only stopping at single digits Even in 2000, there was deflation when the inflation rate was 0.8% Cause: because the prices of food, foodstuffs and many other agricultural products fell sharply on the world market such as paddy, rice, coffee, rubber

In the next 2 years, 2002 and 2003 inflation increased again but not too high In 2002 it was 4%, in

2003 it was 3% So we can see that the inflation from 2000-2003 is moderate inflation mainly stemming from supply of food items, foodstuffs and agricultural products on the market

in 2004, inflation always increased, remained at 10%, these first 3 years According to statista (2010)

inflation increased more than the previous period specifically: in 2004 it was 9.5%, in 2005 it was 8.4%, in 2006 it was 6.6% To face that situation, our country did not have an appropriate solution, leading to high inflation in 2007 and 2008 that was difficult to control, specifically: in 2007 it was 12.36%, in 2008 it was 24.4% Along with the world economic downturn such as the US dollar depreciating, crude oil prices rising, food and raw material prices increasing along with the impact of natural disasters and epidemics, the Vietnamese economy was weakened, but then thanks the government promptly stabilized inflation and brought it back to 7% We can see that in 2004-2009 is the integration of monetary inflation, demand-pull inflation and cost-push inflation

b) Inflation of VietNam in 2011-2020

n 2011, inflation continued to increase in the first half of the year, According to macrotrends (2020) i

causing instability In August 2011, the inflation rate increased to 23% over the same period last year The Government proposed 6 groups of solutions to control inflation, the situation improved, starting from August to remain below 1% until the end of the year Vietnam's inflation in 2012 increased only 6.81%, much lower than the threshold of less than 10% set by the Government December compared with November, the group of apparel, hats and footwear increased the most by 1.17% Other groups

of goods and services that increased higher than the general growth rate but were all below 1% were household appliances and appliances with an increase of 0.59%, culture, entertainment and tourism

by 0.34%, and beverages and tobacco by 0.32% Although far from the original CPI target, 2012 was still a year of unusual price fluctuations Another unusual thing about the domestic price market this year is that the CPI did not decrease after the Lunar New Year decrease in the middle two months of the year (June and July) The reason why occurred that because Due to slow increase in domestic and foreign purchasing power, most Vietnamese enterprises faced difficulties in outputting goods and services throughout 2012.Conclusion: the stability of inflation in 2012 is not really firm because it is mainly influenced by low growth of aggregate demand, both investment demand and consumption demand, besides business confidence and consumer confidence are not high

In the first 9 months of 2013 Inflation in the first 9 months of 2013 was controlled at a low level (up 4.63% compared to the beginning of the year) and more stable than in recent years, CPI relative to prices The average value was quite stable in 9 months of 2013, much lower than in 2012 and 2011 The National Financial Supervisory Commission believes that the CPI growth rate in the last months

of 2013 will still mainly depend depends on the price control of basic commodities Inflation was controlled at a low level, major balances of the economy were improved The average consumer price index decreased from 18.6% in 2011 to about 4%/year in the period 2016-2020 Core inflation decreased from 13.6% in 2011 to about 2.3% in 2020 Currency and foreign exchange markets were basically stable; ensure credit capital for the economy, focusing on the manufacturing sector, especially priority sectors

c) Inflation of the US in period 2001-2010

According to focus economics (2011) inflation in the United States increased from 2001 to 2010 Consumer price rise was just 1.9 % in 2006, 3.4% in 2007, and might be significantly higher in 2008 something the FED has frequently highlighted when raising/lowering interest rates in recent years Because the US has one of the greatest consumption- -GDP ratios in the world, and consumers are to particularly "afraid" of inflation, the interest rate is high That proves how serious the risk of an economic recession is and puts the US at the same time before two very rare risks that are rarely accompanied by the risk of recession and the risk of inflation

The world economy in the past 10 years shows that the world economy is moving at an increasingly fast pace, economic cycles are being shortened with the gap between growth and recession becoming more and more popular, so it's very fragile Economic laws are under the interweaving influence of

many factors, many subjects become more complex and unpredictable than ever The transmission process between economies is increasingly shortened The recovery period after the 2008-2009 financial crisis lasted longer than anticipated

d) Inflation of the US in period 2011-2020

ontrary to the expectations of the Federal Reserve (Fed) According to Pew reasearch center (2021) c

and the Ministry of Finance, the CPI increased by 6.2% over the same period last year, much higher than the 5.4% in September This shows Inflation expectations have increased to 5% instead of the usual 2% annual rate established by the Fed The skyrocketing prices reflect the continued difficulty

of global supply chains since the pandemic, but more clearly the galloping spending of the population due to concerns about the continued escalation of commodity prices and the increasing demand for wages are higher due to a shortage of workers in many industries, especially a large number of people who have not returned to work since the epidemic

In addition, although the general consumer price index (CPI index) recorded an increase of 5-6%, in daily life in the US everyone knows that prices of things increase many times in essential groups For example, the price of gasoline has increased by more than 60%, pushing the price of food by 15-20%

or building materials by more than 30%, etc Especially when huge spending packages of about 3 trillion dollars are about to be announced launched released by the Democratic Party for social policies, climate change and infrastructure development Not to mention the remaining one trillion spending from the fiscal program against the Covid pandemic As a result, there is reasonable public fear that inflation will continue to rise in the coming months unless the Fed moves up to raise interest rates while simultaneously reducing the bond-buying program from November until June 2022, when

it would end altogether, which is not enough

e) Compare inflation between VietNam with US in two periods 2001-2010 and 2011-2020 There were times, Vietnam fell into galloping and prolonged inflation, causing the economy to fall into a serious crisis (especially in the late 70s to early 90s) However, in recent years, inflation in Vietnam has decreased markedly and continuously remained at a low level About 5 years ago, Vietnam's inflation rate remained below 5%

Meanwhile for the United States, 2021 is a year marked by strong inflation, almost at the highest level in the past 40 years Occurs in the context of shortages of goods and labor force in the US In addition, the amount of money that Congress and the Federal Reserve (FED) injected into the US economy at an unprecedented level last year is also said to be a factor increasing inflation By October

2021, the US CPI increased by 4.24% over the same period, still not reaching the level of dovish inflation If calculated from August 2018 according to the proposal of the average inflation target mechanism, the 15-month average inflation of the US reached 3.26%, higher than the 2% target

III) The reason why GDP and inflation varies

1) Definition of GDP

Gross domestic product (GDP) is the overall economic or marketplace fee of all of the completed items and offerings produced inside a country’s borders in a particular time period As an extensive degree of ordinary home production, it’s capabilities as a complete scorecard of a given country’s financial health Though GDP is normally calculated on an annual foundation, it's miles once in a while are calculated on a quarterly foundation as well In the U.S, for example, the authorities release

an annualized GDP estimate for every financial zone and additionally for the calendar year The person information units blanketed on this record are given in actual terms, so the information is adjusted for fee adjustments and is, therefore, internet of inflation The calculation of a country’s GDP encompasses all personal and public consumption, authorities outlays, investments, additions to personal inventories, paid-in creation costs, and the overseas stability of trade The calculation of a country’s GDP encompasses all personal and public consumption, authorities outlays, investments, additions to personal inventories, paid-in creation costs, and the overseas stability of trade a) Nominal GDP

Nominal GDP is a measure of financial production in an According to AKHILESH GANTI (2022)

economy that includes modern-day fees in its computation In other words, it does not account for inflation or the rate at which fees are increasing, both of which might exaggerate the rise amount All products and offers included in nominal GDP are worth the fees for which they are actually supplied in that year To study nations' GDPs in plain economic terms, nominal GDP is calculated in both local foreign currency and US dollars at foreign currency market change quotations Nominal GDP is used while evaluating distinct quarters of output in the equal year When evaluating the GDP of or extra years, actual GDP is used This because, effect, is in the elimination of the affect of inflation permits the contrast of the distinct years awareness completely on volumeto