macroeconomic AGGREGATES

 

Before taking any strategic decision managers have to indentify the pertinent macroeconomic aggregates, the relations between them and their TRENDS.

Aggregates	GDP = C + I + G + X - M
GDP	total value of final goods and services produced within a nation during a given year
C	Household consumption of goods and services
I	physical investment (gross private capital formation) + additions to inventory
G	Government expenditures
X	Exports
M	Imports

Three approaches to calculate GDP

Approaches	GDP (Gross Domestic Product)
Flow-of-product approach	C + I + G + (X - M) (open economy) (assumptions : depreciation = 0, indirect taxes=0)
Earnings approach	Sum of earnings received by household from firms (wages, rents, interests, profits)
Value-added approach	GDP = total value added produced by firms

Relation between International Trade & Internal Macroeconomics

GDP = C + I + G +( X - M)

GDP - C - G = S = I + (X - M)

(S - I) = (X - M)

If X is not equal to M, that is because S (savings) is not equal to I. If we want to restore the equilibrium between X and M, we have to restore the equilibrium between S and I by using the three macroeconomic policies :

• Monetary policy (Swiss Central Bank
• Fiscal policy (Government)
• Government expenditures policy

Macroeconomic Model for Switzerland (million swiss francs)

Years	C	G	Invest	X	M	GDP
2 000	267 180	52 623	127 315	242 714	218 943	470 889
2 001	274 669	53 992	133 912	243 016	221 436	484 153
2 002	274 367	55 646	126 475	234 183	208 094	482 577
2 003	278 785	57 220	127 065	232 888	207 903	488 056
2 004	285 515	57 835	122 566	256 811	221 967	500 760
2 005	292 318	58 586	141 444	280 253	251 661	520 941
2 006	301 084	59 485	153 585	313 996	274 260	553 890
2 007	312 287	61 409	157 846	362 790	304 622	589 710
2 008	322 800	64 947	167 028	387 435	329 154	613 056
2 009	325 868	68 654	170 813	349 698	312 144	602 889
2 010	332 997	69 847	161 578	403 977	344 563	623 835
2 011	336 275	71 683	181 605	421 965	375 001	636 527
2 012	340 513	72 828	169 231	436 206	376 736	642 041
2 013	346 865	74 708	164 934	472 005	402 999	655 513
2 014	349 456	76 424	169 446	435 233	365 002	665 557
2 015	353 192	77 072	168 434	426 073	355 987	668 784
2 016	358 300	78 054	171 218	452 949	384 198	676 323
2 017	365 386	78 789	178 140	455 238	391 703	685 849
2 018	372 309	79 927	180 237	479 616	403 644	708 446
2 019	375 648	81 401	189 354	481 064	409 267	718 201
2 020	361 333	84 475	207 677	445 898	402 147	697 237
2 021	368 887	88 782	194 329	528 377	438 401	741 974
2 022	393 824	88 877	189 023	601 080	493 160	779 643
2 023	410 148	89 978	200 668	590 138	493 786	797 146

 

Years	Unemployment rate	Inflation rate
2001	1,70%	1,05%
2002	2,50%	0,62%
2003	3,70%	0,62%
2004	3,90%	0,82%
2005	3,80%	1,12%
2006	3,30%	1,11%
2007	2,80%	0,70%
2008	2,60%	2,47%
2009	3,70%	-0,48%
2010	3,50%	0,68%
2011	2,80%	-1,15%
2012	2,90%	-1,07%
2013	3,20%	0,10%
2014	3,16%	-0,39%
2015	3,42%	-1,28%
2016	3,30%	0%
2017	3,30%	0,80%
2018	2,70%	0,69%
2019	2,50%	0,20%
2020	3,50%	-0,80%
2021	2,60%	1,50%
2022	2,10%	2,80%
2023	2,30%	1,72%

 

Macroeconomic aggregates for Switzerland : annual variation rates

 

Years	∆ C	∆ G	∆ Invest	∆ X	∆ M	∆ GDP	Unemployment rate	Inflation rate
2001	2,80%	2,60%	5,18%	0,12%	1,14%	2,82%	1,70%	1,05%
2002	-0,11%	3,06%	-5,55%	-3,63%	-6,03%	-0,33%	2,50%	0,62%
2003	1,61%	2,83%	0,47%	-0,55%	-0,09%	1,14%	3,70%	0,62%
2004	2,41%	1,08%	-3,54%	10,27%	6,76%	2,60%	3,90%	0,82%
2005	2,38%	1,30%	15,40%	9,13%	13,38%	4,03%	3,80%	1,12%
2006	3,00%	1,53%	8,58%	12,04%	8,98%	6,32%	3,30%	1,11%
2007	3,72%	3,23%	2,77%	15,54%	11,07%	6,47%	2,80%	0,70%
2008	3,37%	5,76%	5,82%	6,79%	8,05%	3,96%	2,60%	2,47%
2009	0,95%	5,71%	2,27%	-9,74%	-5,17%	-1,66%	3,70%	-0,48%
2010	2,19%	1,74%	-5,41%	15,52%	10,39%	3,47%	3,50%	0,68%
2011	0,98%	2,63%	12,39%	4,45%	8,83%	2,03%	2,80%	-1,15%
2012	1,26%	1,60%	-6,81%	3,37%	0,46%	0,87%	2,90%	-1,07%
2013	1,87%	2,58%	-2,54%	8,21%	6,97%	2,10%	3,20%	0,10%
2014	0,75%	2,30%	2,74%	-7,79%	-9,43%	1,53%	3,16%	-0,39%
2015	1,07%	0,85%	-0,60%	-2,10%	-2,47%	0,48%	3,42%	-1,28%
2016	1,45%	1,27%	1,65%	6,31%	7,92%	1,13%	3,30%	0%
2017	1,98%	0,94%	4,04%	0,51%	1,95%	1,41%	3,30%	0,80%
2018	1,89%	1,45%	1,18%	5,36%	3,05%	3,29%	2,70%	0,69%
2019	0,90%	1,84%	5,06%	0,30%	1,39%	1,38%	2,50%	0,20%
2020	-3,81%	3,78%	9,68%	-7,31%	-1,74%	-2,92%	3,50%	-0,80%
2021	2,09%	5,10%	-6,43%	18,50%	9,02%	6,42%	2,60%	1,50%
2022	6,76%	0,11%	-2,73%	13,76%	12,49%	5,08%	2,10%	2,80%
2023	4,15%	1,24%	6,16%	-1,82%	0,13%	2,24%	2,30%	1,72%

 

Global competitiveness Index 2009 - 2019 Switzerland

 

Source : National Bank of Switzerland

 

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