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Gdp vs Hdi

In: Business and Management

Submitted By gabesdefig
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The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.

HDI: The Human Development Index (HDI) is a statistical tool used to measure a country's overall achievement in its social and economic dimensions.

UK currently 14 on the HDI, were 9th in Europe
UKs GDP position is 6th
China are 91st on the HDI and GDP is 2nd "Although the economy in China is very large, the income of Chinese people is still much lower than in many developed countries," "and I think environmental pollution also affected China's ranking on the list."

Countries high on the Human Development Index tend to have annual population growth rates of 1 percent or less, high urban population percentages (65 percent and up) and balanced percentages of people under 15 and over 65 years of age. Those low on the index tend to have annual population growth rates of 1.5 percent or higher, less than 35 percent of the population in urban areas, and an under-15 population that greatly outnumbers those above 65 years (in most cases, more than 10 times as many.)

There is today a very strong correlation between rising GDP/capita. If you exclude 6 countries on the right side of the strong correlation that have higher GDP/capita than HDI due to oil or diamonds; and if you exclude 6 former Soviet Republics with collapsed economy but still high literacy rate on the left side of the correlation; you will find that the GDP/capita and the value on Human Development Index follow each other very closely from the worst-off country Congo to the best-off country Norway

Nations today are surprisingly capable in converting the available national income (measured as GDP/capita) into a longer lifespan for the people (measured as Life expectancy at birth) and into access to education (measured by mean of years of schooling for adults aged 25 years and expected years of schooling for children of school entering age). But the reason may also be that nations today are very good at converting improved health and education into economic growth. Most probably the causality goes in both directions.

Reasons for the good GDP in the UK
Services is the biggest sector of the economy and accounts for more than 75 percent of total GDP. The key segments within Services are Distribution, Transport, Hotels and Restaurants (18 percent of total GDP), Government, Health and Education (20 percent); Professional and Support (11 percent); Financial and Insurance (9 percent) and Real Estate (9 percent).
Gdp growth currently 0.7percent

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