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Pakistan's Per Capita income Rises to $3135 Amid Slow Growth

It's inflation for fucks sake.

Although it is true the per capita income has increased due to inflation, but it is sleight of pen to convert the inflation-based GDP into dollars at an overvalued exchange rate.

The result is nothing more than an illusion. The last four years have also seen acceleration in inflation, with year-on-year inflation peaking at over 25 per cent during late 2008, but persisting subsequently, fluctuating around 15 per cent until recently.

Stabilising the economy | Opinion | DAWN.COM
 
Talking about inflation, much of India's income and gdp growth in nominal US dollar terms is also fueled by rising inflation and appreciation of the Indian rupee relative to the US dollar while the purchasing power of the Indian rupee is in double digit decline as commodity prices reach new highs.
 
Talking about inflation, much of India's income and gdp growth in nominal US dollar terms is also fueled by rising inflation and appreciation of the Indian rupee relative to the US dollar while the purchasing power of the Indian rupee is in double digit decline as commodity prices reach new highs.

Inflation was an issue only in the last two years. Yet with a growth rate of over 8% and a similar inflation rate is lot better than 0.7% growth and 16.2% inflation right?
 
How did Pakistan per capita increase by 17% when GDP growth was 2%, maybe I didnt get the terminology from the OP.

17 % is probably the real increase in GDP and 2 % the inflation adjusted growth rate.GDP growth rate is normally expressed as inflation-adjusted growth rate.

If the money is increasing in amount,but the very value of money is decreasing at a very high rate too,then the absolute increase in amount has little value.Hence,in order to get an actual idea about growth,GDP is always expressed after inflation-adjustment.

Take the example of India.The GDP growth rate in this quarter in India is rather low,close to 8%,while without inflation adjustment,it may very well be around 17-18%.

The figure of 17 % un-adjusted growth may look big on paper,but it does not actually mean something very good,if the adjusted growth rate is as low as 2 %.

Take it this way,the closer the adjusted and unadjusted figures are,the better it is for a country,and vice versa.
 
Talking about inflation, much of India's income and gdp growth in nominal US dollar terms is also fueled by rising inflation and appreciation of the Indian rupee relative to the US dollar while the purchasing power of the Indian rupee is in double digit decline as commodity prices reach new highs.

Here is a post that can be nominated for epic failure. Growth in nominal terms cannot be fuelled by inflation for long! The market forces balance things out. If that is the case, then a currency that is free float will not be valued at the same conversion rate.


With no proof you claim drop in purchasing power !
 
pakistan had 7% annual growtH before this menacing WOT
 
Talking about inflation, much of India's income and gdp growth in nominal US dollar terms is also fueled by rising inflation and appreciation of the Indian rupee relative to the US dollar while the purchasing power of the Indian rupee is in double digit decline as commodity prices reach new highs.

But India has its 8% growth rate to back its numbers.
 
ohhho putar i've sifted through this thread and many like it....it's best to stick to the actual facts.

hell -- there are countries that are notorious for fabricating numbers (e.g. central asian republics). To a large extent, Pakistan hasnt done so though there have been times where it did. It is true however some of the posters' input on inflation and how it counteracts against a rising GDP per capita

please also remember that these figures do not take into account the informal (undocumented) sector which in itself is quite large and unfortunately a bit difficult to quantify in numbers


as for the growth Pakistan witnessed in the early 2000s -- yes it was a very good time for Pakistan....foreign investment was ever-increasing and poverty did dip. This can be partially attributed to some debt-forgiveness granted to Pakistan for its cooperation in the GWOT. More funds (which were usually reserved for debt servicing) were available for investment/infrastructure projects and other things.


Pakistan has been quite resilient, despite the recent turn of political events which have had a detrimental effect on its economy. Any other country out there would have collapsed by now, whereas in Pakistan --despite the challenges -- life, business --everything still goes on. It really goes down, however, to sound governance and sound domestic economic policies.

we need a down-sized and more efficient government....there needs to be accountability on governments end, and meanwhile Pakistanis (especially the rich) need to own up and be willing to sacrifice some income for the sake of providing revenue to govt. which would be used for public services --which would in turn be provided to the population; thats a whole seperate issue though
 
pakistan had 7% annual growtH before this menacing WOT

Please you do know WOT started in 2001 right? You should go and check your growth rates in 90's and early 2000's. You guys were developing only when America was there to support you. Otherwise you are stuck as hell.
 
Its called logic, try to think like a economist, how can per capita increase strip GDP growth 8 times.

You talking about nominal GDP.GDP nominal is the value of all the products made in a country i-e 212 bn $ for Pakistan,but as the inflation continues price of every produced thing is increasing so per capita had to increase.Perchasing powere parity is discussed here value for pakistan is around 480 bn $.
 

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