Implications of Economic Indexes in Venezuela
Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
Author: @dgalan,through Power Point 2010 tool, and using public domain image Pixabay
In the geographic space, global or of a particular nation, the economic indicators represent in a fundamental way the stability of a country, always depending on the economic policies implemented within them. These indicators help us to know what is the economic situation of such country, in a direct and qualitative way for a determined period and thus to be able to see a future evolution.
Among the most important indicators we have the Gross Domestic Product (GDP) which according to Ortiz F (2008), the Gross Domestic Product "is the value of the final goods and services produced for the market within that country, in a given period of time (generally official figures refer to a year".
It should be noted that the most recent indicators confirm that the world economy is suffering serious losses due to the entry into recession of the main economies of the planet. At the same time the cost of raw materials such as oil due to the increase in its demand, have generated a deterioration in the world economy, If the population grows at a lower rate than the GDP, we can mention that the standard of living is increasing. If the population grows faster than the GDP, then the standard of living is decreasing.
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Image taken from:Pixabay
In this sense, economic indicators are a key variable for the sustainable development of a country's economy, as is the case of Venezuela. The economic policies implemented in the country in recent years have not been able to reduce poverty levels, the minimum wage has been increased several times and inequality levels have increased.
According to Dornbush, Rudiger. (2009) an indicator is a quantitative measure that can be used as a guide to monitor and assess the quality of different activities. That is, the particular form (usually numerical) in which each of the criteria is measured or evaluated.
We can also mention that the world economy is currently very affected by the terrible economic variations that these indicators show us when they are disturbed by visible falls, which cause a large number of unemployment and force the state or government to take the necessary measures to stabilize the economy in an extraordinary way.
Image taken from:Pixabay
As a result, the deterioration of the Venezuelan's purchasing power can be noticed. When there is inflation, the currency being analyzed loses the power to acquire fewer goods and services compared to a previous time. This is why it is said that money reduces its value when there is inflation. In this regard, the country has shown a drastic reduction in the production of goods, which has resulted in shortages.
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Greetings friend @dgalan, interesting topic you bring, it is very relevant to know that the world economy is being affected day by day, this is due to many factors, including population growth, which generates more public spending, and the most recent entry of the pandemic of COVID-19, which generated that many of the businesses had to stop producing with the same efficiency, which has generated a great economic impact on the world, thanks for sharing this information.
Greetings @chucho27. Very interesting your point of view, however I think that after the pandemic these indicators will take a long time to normalize because it will not be due to the increase of the population, because there are a considerable number of deaths, I think rather that GDP will increase faster than the population and that is beneficial for the world economies.
Thank you very much for your comments