The comparative case study of Developed (G-8 & G-20 countries) Term Paper

The comparative case study of Developed (G-8 & G-20 countries) - Term Paper Example The United Nation’s definition of the poor indicates that they are such persons living on less than a dollar a day. The more alarming indications that the developed economies classified under the G-8 and the G-20 have their share of economic problems points out the seriousness of this issue. The world’s giant economies are classified under the G-8 whereas the G-20 are the fast growing economies of the world that have continued to be a threat to the developed nations in terms of economic power. The World Bank has made projections to the effect that developing countries or the G20 are likely to reach full capacity in terms of growth and consequently slowing growth from the year 2010’s 7.3 percent to a region of around 6.3 percent annually as from 2011-2013. On the other hand, the G8 will encounter a slowed growth from the lower growth reflected by the 2010’s 2.7 percent to the year 2011’s drop to 2.2 percent. They will experience a rise of up to 2.7 percent in the end of 2012 and a further drop to 2.6 percent in 2013, which shows a fluctuating economy in the giant economies1. If these statistics are to be believed, the developing world is steadily catching up with their developed counterparts even though there are obstacles that they must overcome. This paper examines the macroeconomic indicators of two selected countries (United States and Saudi Arabia) that are in the G-8 and G-20 categories. The period of examination shall be in the last five years a nd indicators such as the GDP, unemployment rates, GNP, consumer and producer price index and GDP per capita among others will be used to analyze their macroeconomic conditions. United States is slowly picking up from the worst economic downfall in decades. On the other hand, the Arabic nation of Saudi Arabia has not been affected much by the global economic crisis but that does not mean that the citizens of the