Peru's Economic Value - Free Essay

Gross Domestic Product (GDP) refers to the market value of the goods and services produced within a particular country over a period. It is the sum of private consumption, gross investment, government investment, and government spending, plus the difference between exports and imports. GDP per capita refers to a breakdown of a specific country's economic output per individual and can be calculated by dividing GDP by the total population. In the comparison of Peru's GDP and the United States, Peru's GDP grew by four percent in 2018 compared to 2017. Peru's GPD amounted to $ 222,044.97 million, making it 50th in the global ranking of GDP (GDP (Current US$) - the United States | Data, n.d.). The absolute value of the GDP rose by $8,881.8 million compared to 2017 (GDP (Current US$) - United States | Data, n.d.).

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On the other hand, the GDP the United of the United States grew by 2.9 percent in 2018 compared to 2017 (United States, n.d.). The GPD was $20,580,200 million representing a difference of over 20, 354,834 million compared to Peru. Globally, the US ranks first within the GDP ranking, and the growth of 2.9 percent represented about $1,060,800 million (GDP (Current US$) - United States | Data, n.d.).

As such, the GDP per capita income of the United States in 2018 was $61,304.5slightly above 2017 by $2,869. Peru's GPD per capita income in 2018 was $6,941.2, which was 211 less than the per capita of 2017 (GDP per Capita (Current US$) - Peru | Data, n.d.). Thus, the US per capita income in 2018 was higher by $54,363.3 compared to Peru.

According to World Bank data, Peru's inflation rate was 2.1 percent in 2019, while that in the United States was 1.8 percent representing a difference of 0.3 percent. During the same period, the US witnessed an economic growth rate of 2.3 percent, while Peru witnessed a growth of 2.2 percent (Wikipedia Contributors, 2019). The US growth rate in 2019 can be attributed to increased personal consumption expenditure, national government spending, state and county government expenditure, residential fixed investment, and exports (Wikipedia Contributors, 2019). On the other hand, Peru's economic growth was attributed to a gradual increase in exports and strong domestic demand (World Bank, 2019).

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Reference

GDP (current US$) - United States | Data. (n.d.). Data.Worldbank.Org. Retrieved July 5, 2020, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2018&locations=US&start=1960

GDP per capita (current US$) - Peru | Data. (n.d.). Data.Worldbank.Org. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2018&locations=PE&start=1960

World Bank. (2019, October 11). The World Bank in Peru https://www.worldbank.org/en/country/peru/overview

United States. (n.d.). https://www.cia.gov/library/publications/the-world-factbook/attachments/summaries/US-summary.pdf

Wikipedia Contributors. (2019, April 15). Economy of the United States. Wikipedia; Wikimedia Foundation. https://en.wikipedia.org/wiki/Economy_of_the_United_States‌