Scenario: You Are A New Economic Analyst Recently Hired By W

Scenarioyou Are A New Economic Analyst Recently Hired By White House

Scenario: You are a new economic analyst recently hired by White House Foreign Relations Committee to keep the President updated as to the economic status of countries around the world. To this end, you are to collect and compile data and information on two countries: COLOMBIA or PERU plus one more country of your choosing (except the United States). In your report to the White House, you are to compare and contrast the two countries while addressing each of the following areas :

1. Report on the current rate of INFLATION of your research countries. How does this compare to inflation in other areas of the world? (Note: Saying “It’s higher than other areas,” or “it’s lower than other areas” is NOT sufficient.) Will inflation be a major concern for your research countries? If yes, please explain how/why it will affect the economy. If no, explain why it is not a current concern for the economy.
2. Report on current UNEMPLOYMENT for your research countries. How does this compare to unemployment in other areas of the world? (Again, saying “it is higher than other areas” or “it is lower than other areas” is NOT sufficient.) Do all people seem to be equally affected by unemployment – i.e., are some groups of people more affected by unemployment than others? (for example, women and minorities often have higher unemployment than other groups; in some countries, unemployment differs by region; etc.)
3. Report on the current REAL GDP for your research countries. How does this compare to other countries’ real GDP? Now report on the GDP per capita. How does this compare to other countries’ per capita GDP? Is your research country’s Real GDP ranking consistent with its per capita GDP ranking? If so, why? If not, why not?
4. Report on the rate of ECONOMIC GROWTH that your research countries are currently experiencing. How does this compare to economic growth in other countries? (Again, “it is higher/lower than other countries” is NOT sufficient.) Is this rate of growth consistent with what your country has experienced in the past (is it currently higher than it has been, or lower than it has been)? Why/why not?
5. Of the first four research areas (above), which area(s) do you feel are the greatest cause for concern for your research countries? Explain.
6. Include a bibliography of all your sources.

SOURCES FOR THIS ASSIGNMENT (These are suggestions to get you started, but you don’t need to limit yourself to this list; feel free to locate additional sources. Please note Wikipedia WILL NOT BE ACCEPTED .) To help you with Recommended sources: URL: Basic data on inflation, unemployment, GDP, GDP per capita, and growth CIA Factbook Unemployment comparisons among groups within your research country NationMaster For additional insight into the effects of inflation on the country, the effects of unemployment, if/why certain groups within the country are more affected by unemployment than others, etc., it’s good to keep an eye on current events… The Economist Magazine NPR The Christian Science Monitor The Wall Street Journal Citing your online sources Montgomery College Library (Montgomery County, MD) Creating a bibliography EasyBib website

Paper For Above instruction

As a newly appointed economic analyst serving the White House Foreign Relations Committee, it is imperative to provide a comprehensive overview of the economic conditions of selected countries to inform policymaking and diplomatic strategies. This report compares Colombia and Peru with Kenya—a representative African nation—covering critical economic indicators: inflation, unemployment, real GDP, GDP per capita, and economic growth rates. This comparative analysis leverages recent data from credible sources such as the CIA World Factbook, the International Monetary Fund (IMF), and the World Bank, providing a nuanced understanding of each country's economic landscape and potential concerns.

Current Inflation Rates and Their Implications

Inflation reflects the rate at which the general price level for goods and services rises, eroding purchasing power. According to the latest data from the CIA World Factbook, Colombia's inflation rate stands at approximately 5.4%, while Peru reports a rate of around 2.3%. In contrast, Kenya's inflation rate is about 7.1%. Compared globally, these figures place Colombia in a moderate inflation category, similar to many emerging economies, whereas Peru maintains a relatively low inflation level, characteristic of stable economies. Kenya's higher inflation indicates persistent price volatility, potentially stemming from supply chain disruptions and currency depreciation.

For Colombia, moderate inflation suggests manageable macroeconomic stability; however, sustained increases could threaten consumer purchasing power and savings. Peru's low inflation rate signifies cautious monetary policy and fiscal discipline, reducing inflationary risks. Kenya's inflation could become a concern if it signals unanchored expectations or policy missteps, which may undermine economic growth and discourage investment.

Unemployment Trends and Societal Impact

Analyzing unemployment, Colombia's rate is approximately 11.2%, while Peru's is around 8.4%. Kenya reports a higher unemployment rate at roughly 9.8%. When comparing globally, Colombia's unemployment exceeds the global average, indicating structural challenges, whereas Peru's figure is closer to that of other Latin American economies. Kenya's unemployment reflects both economic resilience and vulnerabilities, especially among youth and rural populations.

Disaggregated data reveal that in Colombia, unemployment disproportionately affects women and rural youth, highlighting gender and regional disparities. In Peru, indigenous populations and women face higher unemployment rates, emphasizing social inequality. Kenya exhibits high youth unemployment, compounded by limited educational opportunities and informal sector dominance, which affects marginalized groups disproportionately. These disparities underline the importance of targeted policy interventions to address unemployment's unequal societal impacts.

Real GDP and GDP Per Capita: Size and Wealth Distribution

With respect to real GDP, Colombia's figure is approximately $341 billion, whereas Peru's stands at around $250 billion, according to IMF data. Kenya's real GDP is approximately $95 billion. When considering GDP per capita, Colombia's is roughly $6,500, Peru's around $7,000, and Kenya's approximately $1,950. Despite Colombia's larger total GDP, Peru's higher per capita GDP indicates a more equitable distribution of income among its citizens.

Interestingly, Colombia's real GDP rank is higher than Peru's, reflecting its larger economy, yet its per capita GDP rank may be lower due to income inequality. Conversely, Peru's socio-economic structure results in a higher per capita GDP relative to its total GDP, highlighting differences in wealth distribution and economic development levels.

Economic Growth Rates and Historical Trends

Colombia has experienced an average annual GDP growth rate of approximately 3.1% over the past five years, with recent data indicating a slowdown due to global economic uncertainties such as commodity price fluctuations and internal political challenges. Peru has maintained a steady growth rate of around 2.9%, fueled by mining exports and domestic consumption.

Kenya, meanwhile, has exhibited a higher growth rate of approximately 5.2%, driven by infrastructure investments and expansion in technology sectors. Comparing current growth rates to historical data shows that Colombia's growth has been relatively inconsistent, partly due to external shocks, whereas Kenya’s higher recent growth signifies a potential catch-up phase. The stability of Peru’s growth reflects effective economic management, but the lower rate suggests room for acceleration.

Assessment of Economic Concerns

Among the examined areas, inflation and unemployment pose the most immediate concerns for Colombia and Kenya. Colombia's moderate inflation could escalate if monetary policies shift, risking cost-of-living increases, while its unemployment particularly affects marginalized groups, intensifying social inequalities. Kenya's higher inflation and youth unemployment are alarming, threatening social stability if not addressed.

Real GDP figures suggest that while Colombia maintains a larger economy, income disparities remain problematic. Peru’s higher income per capita indicates better wealth distribution, yet its slower growth rate highlights the need for diversification. Overall, inflation and unemployment disparities are the primary challenges requiring policy attention to foster inclusive and stable economic growth.

Conclusion

This comparative analysis underscores that each country faces distinct economic challenges: Colombia with inflation and inequality, Peru with slower growth but better income distribution, and Kenya with higher inflation and youth unemployment. Policymakers must tailor strategies to these contextual realities to promote sustainable development and social equity. Continuous monitoring of these indicators will be crucial for informed decision-making and maintaining economic stability in these regions.

References

• CIA World Factbook. (2023). Colombia. https://www.cia.gov/the-world-factbook/countries/colombia/
• IMF. (2023). World Economic Outlook Database. https://www.imf.org/en/Data
• World Bank. (2023). Peru Overview. https://www.worldbank.org/en/country/peru
• Kenyan National Bureau of Statistics. (2023). Kenya Economic Report. https://www.knbs.or.ke
• Trading Economics. (2023). Colombia Inflation Rate. https://tradingeconomics.com/colombia/inflation-cpi
• OECD. (2023). Unemployment rates in Latin America & Africa. https://stats.oecd.org
• Bloomberg. (2023). Kenya’s Economic Outlook. https://www.bloomberg.com
• Economist Intelligence Unit. (2023). Economic overview of Peru. https://www.eiu.com
• United Nations. (2022). Socioeconomic Indicators. https://unstats.un.org
• EasyBib. (2023). How to create a bibliography. https://www.easybib.com