A positive statement is a statement about what is and that contains no indication of approval or disapproval. Notice that a positive statement can be wrong. “The moon is made of green cheese” is incorrect, but it is a positive statement because it is a statement about what exists. Positive analysis of economic growth Economic growth is measured as the annual percent change of gross domestic product (GDP). The Gross Domestic Product (GDP) in Pakistan expanded 3. 67 percent in the fiscal year 2011-12 from the previous year.
GDP Growth Rate in Pakistan is reported by the Pakistan Bureau of Statistics. Historically, from 1952 until 2012, Pakistan GDP Growth Rate averaged 5. 0 Percent reaching an all-time high of 10. 2 Percent in the fiscal year of 1953-54 and a record low of -1. 8 Percent in the fiscal year of 1951-52. Pakistan is one of the poorest and least developed countries in Asia. Pakistan has a growing semi-industrialized economy that relies on manufacturing, agriculture and remittances. Although since 2005 the GDP has been growing an average 5 percent a year, it is not enough to keep up with fast population growth.
The economy of Pakistan is the 27 largest in the world in terms of purchasing power parity (PPP), and 44th largest in terms of nominal GDP. http://www. tradingeconomics. com/pakistan/gdp-growth Agricultural sector contributes about 20. 4 percent to Pakistan GDP. 26. 6 percent is added by industrial sector as was estimated by 2008. 53 percent was received from service sectors during 2008. Poverty reduction is among main issues that have been taken up by government for economic growth of Pakistan in fiscal year (2011-2012.
Government has plans to improve roads, dams and power generating plants to create more job opportunity and enhance possibilities of economic growth at Pakistan. For this purpose 541 billion rupees will be spent to accentuate Pakistan economic growth. Central bank of Pakistan has increased discount rate at which it lends to commercial banks by 1. 5 percentage points. This was done to bring down inflation rate in Pakistan. In 2008, total investment was estimated to rise to 22. 4 percent of GDP. Economy of Pakistan showed 5. 4 percent growth in manufacturing, 4. percent growth in large scale manufacturing and 1. 5 percent growth in agriculture sector in 2008. It has been found that there has been a growth of 18. 4 percent in per capita income and 17 percent growth in finance and insurance sector in 2008. Pakistan economic growth is also marked by increase in public debt burden, which rises from 55. 2 percent of GDP to 56 percent . http://www. nber. org/data/#demographic Definition of Normative analysis Normative statements usually use factual evidence as support, but they are not by themselves factual.
Instead, they incorporate the opinions and underlying morals and standards of those people making the statements. Normative analysis refers to the process of making recommendations about what action should be taken or taking a particular viewpoint on a topic Normative analysis of economic growth To increase the economic growth government should plan to improve roads, damn and power generating plan to create job opportunities for people. As more people are employed, the amount of capital increases, education levels increase, the quality of capital changes, or the technology increases, the productive capacity of the economy increases.
Therefore, the economy can increase its output giving consumers more disposable income, promoting an increase in consumption spending, and providing resources for business to use for further investment and government to use to provide public goods and services. Taxes should be increased to provide additional funding for public schools. Increase in education usually increase productivity. Skilled workers produce more output than unskilled workers. To achieve better-educated workforce property taxes should be increased to provide more funding for public schools.
By this method we can improve our education system. Government is introducing new policies to encourage economic growth in Pakistan. The economy has suffered in the past because of internal political disputes, a fast growing population, mixed levels of foreign investment, and costly, ongoing disputes with neighboring India. The Pakistani government should made economic reforms and medium-term prospects for job creation and poverty reduction. Pakistan’s economic outlook has taken stagnation.
Security concerns stemming from the nation’s role in the war on terror have created great instability and led to a decline. High birth rates and immigration from nearby countries have contributed to a persistence of poverty. To achieve a higher level of GDP in the future, consumers should limit consumption spending and increase savings, permitting businesses to invest more in capital goods. If resources are invested into building an economy now, future generations will enjoy a higher level of entity to enjoy higher standards of living. Graph of the Comparison between Pakistan and Austria in term of GDP