Gross Domestic Product
[pic 1]The diagram show out the circular flow of the income and spending between the firms and household. They each provide needs to each other for maintain the success. [pic 2]Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a period (quarterly or yearly).(meaning of GDP) Its show the market value of the economic activity of the region. Also it important to measure a country economic situation and development level. The diagram show that start from 2004 the GDP of HONG KONG is 170 billion and the GDP is increase each of the year until 2013 the GDP of HONG KONG is about 270 billion.[pic 3]The above diagram show the GDP of HONG KONG form 2004-2013,as we can see from2004-2006 the growth rate of GDP is change less, then in 2006-2008 the range is between 1%. Later in 2008-2010 the GDP growth rate had a large change, from 2008 the GDP Growth rate fall down from 2% to -3%, in that time because was happened the Financial crisis, that cause the economic become worse at that time , so that cause many of the people loss money and most of the company end up. So that the GDP became less and the Growth rate fall down from that time. Start from 2009-2011, the GDP growth rate had a increase from -3% to 3%, because after the Financial crisis problem solve, that make the GDP become increase again so the growth rate had a large increase. Last from2011-2013, there have a fall start from 2011 then at the last quarters of 2011, the growth rate raise up again, also there a still have little raise until 2013.
[pic 4]The GDP per capita of HONG KONG of 2004 was record around 25000 USD. Then until 2007 there a large increase to 30000 USD. Later in 2008-2009 there are little bit decrease in GDP per capita to 29000 USD. After 2009 the GDP per capita until 2013 had increased, and record around 33000 USD.[pic 5]The unemployment rate of HONG KONG start fomr2004 the unemployment rate is about 7.5%. Then until 2008 the rate is keep on decreasing that means there are more people find job to work. But in 2009 the unemployment rate raise up again and record about 5.5%. After 2009 the unemployment rate until 2013 was decrease and record 3%. That means more and more people find a job after 2009.There are three types of unemployment, first Frictional Unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. When the environment change, they need to find a new job or when some of the new employees come they need to retire that will make the change of other people, but this kind of unemployment dont take a long time.Second, the Structural unemployment is when the market competition or the environment change that occur this unemployment. When change of the skills need or the working environment change, if the people dont have this skill the maybe need to unemployed again. So the people need to go to training, find another job that need this kind of skill or they need to move to other place to find the job. And also this problem will be continues according unemployed people, that will have a long term effect on economic. Also the Structural unemployment period tie is longer than the Frictional unemployment.