Breakdown of todays' Economies

The US economy

The world's largest by nominal GDP
Became the world greatest economy in the early 202th century, and due to mass industrialisation and technological advancements it has retained that title for over 100 years.
The dollar, which was established in 1785 is used in 16 countries  and is a vital currency in international trade. It's top trading partners include China, Mexico, Canada, Germany, Japan and South Korea.

The Power Of Industry
Today US companies can be seen dominating industries all over the world, predominantly info-tech and construction. At the same time foreign countries
fight endlessly to break into the US market- the worlds largest consumer market.
It is a mixed economy (an economic system influences by both market forces and government planning).
Known for promoting a society which encourages entrepreneurship and innovation and in turn leads to economic growth.
Despite this, income inequality ranked 41st highest among 156 countries in 2017 and the highest compared to other Western nations.

Post Covid-19

During the first two quarters of 2020 the U.S. economy entered a recession due to the COVID-19 pandemic.
Consumption, which makes up 70% of America’s GDP, slumped as individuals held off major purchases. This was coupled with a fall in investment (17% of GDP), and an obstruction of global supply chains.

The Economy Of Tuvalu

(A complete anthesis of last week's economy)

Lowest GDP of any country worldwide
Gross Domestic Product (GDP) of 32 million
This is 85x smaller than the amount the US government spends on printing alone!
The 2nd smallest country by population- with approximately 11,00 people

Breakdown
Situated in the middle of the Pacific, Tuvalu is extremely isolated and surprisingly doesn't make money from
tourism, unlike other pacific islands. Instead, the economy relies considerably on the fishing industry.
43% of Tuvaluans work in this industry. In addition, Tuvalu is part of exclusive economic zones, and thus
have rights to resources. Thus injections into their economy come mainly from selling fishing licences.
Remittances(money sent home by foreign workers), make up 10% of Tuvalu's GDP- this comes from the employment of 15%
of adult male Tuvaluans overseas. Another very interesting source of national income comes from selling domains(approximately 2-3 million dollars yearly). This is because they hold the very opportune '.tv' domain name.

In the late 90's, early 2000's Tuvalu was one of the best performing Pacific Island economies with a growth rate of 5.6% per annum.

Challenges
However, since 2002, economic growth has slowed as Tuvalu was exposed to rapid rises in world prices of fuel and food. Unable to cope with inflation, the economy has subsequently contracted over the years. It is even described as an extremely vulnerable economy due to it's economic dependency, macroeconomic isolation and other external factors such as climate change.

Trust fund
The Tuvalu Trust Fund is a fund established to benefit Tuvalu, by covering shortfalls in the national budget. It was established in 1987 by the UK, Australia and New Zealand. It has been contributing to 15% of the national budget since 1990.

The Economy Of Japan

Breakdown
A highly-developed free economy
Japan is the third-largest economy in the world by nominal GDP
Per Capita GDP of approx. $41,600 (2020)
Japan is frequently regarded as the world's most innovative country, with an extensive automobile and electronic goods industry. Despite this, due to increasing competition from both China and South Korea, manufacturing has switched it's focus towards high tech goods (robotics etc). In fact, the partner robotics industry alone is worth $1 trillion. As of August 2020, there are 53 Japanese companies on the fortune 500 list.

Challenges
Despite being the worlds largest country by total wealth, the declining population poses a considerable challenge to the economy-primarily a radical change in the workforce. In fact, in order to maintain it's worker-to-retiree ratio, the countries main alternatives are to raise its retirement age or encourage migration. Otherwise there is a risk of a shrinking economy if productivity does not increase faster than the rate at which the workforce is decreasing.

Dive back in time:
The Meji Restoration Period 1868-1912
Prior to which, Japan was a 'closed' country' with an isolationist foreign policy. Trade between Japan and other countries was severely limited. However this period brought about economic and social changes. Industrialization was the primary goal of the government, which directed the development of strategic industries, transportation, and communications. Private firms were also encouraged by government financial support. It most definitely paved Japans pathway to become a 'major international power'.

The Swiss Economy 

Incredibly advanced free market economy
Vast and significant service sector 
Second highest gross domestic product (GDP) per capita
Currency = Swiss Franc (CHF)

Breakdown

Situated in Central Europe, Switzerland is a landlocked developed country with the highest nominal wealth per adult. On various international metrics, Switzerland has earned top spots, predominately for it's high competitiveness and human development. With a Gini coefficient of approximately 29, Switzerland has a higher-than-average income equality. Switzerland is home to the world's most important centres for life sciences - Basel, which accounts for 38% of the countries exports. Additionally both Zurich and Geneva are deemed one of the most important economic centres in the world. For the less industrialised regions of the country, tourism is vital for revenue and thus receives considerable investment.

Challenges
Quite surprisingly, despite being considered one of the least corrupt countries in the world, it's banking sector has been rated as one of the most corrupt. It is considered a 'tax haven'- a country with extremely low effective taxation for investment. The OECD has also highlighted that the Swizz economy is becoming increasingly less competitive and may experience a decline in potential economic growth as a result. Also, it is important to note the Swizz property boom, leading to deeply low home ownership rates is another example of challenge. This time, an inflation issue, as the supply of housing has failed to meet demand, further complicating the ownership issues.

By Jessica Soares

20/01/2021