How to check countries health of the economy in 2021

A lot of discussions widespread on every country television about the country's economy, the economy is suffering, the unemployment rate is high, home prices are low, and buyer confidence is down., financial market down, account surplus, account deficit, and bond market share market, and financial debt. Sometimes it would be difficult to understand for an ordinary person what really it means to them about country growth and economy.

So a key question is how we should know about any country's economic health in the easy term? is it quite interesting? sure because we are all living in different countries, each country economy has sig importance impact in our daily routine life. It could be more convenient to understand country progress for those people who have some Educational background in finance, economics and if they have a strong association, but what about all others? who don't have it and know nothing, how they can check any their own country's economic health.

Before we are going to answer our key question how to check the country health of the economy. First, we have to understand what is economy its self and what are the goals of the economy for each country in the world.

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What is Mean Economy? 

Economy means the Money and resources of a country, specifically in terms of the production and consumption of goods and services. the production and consumption of goods and services are used to fulfill the needs of those living and operating within it. Another definition we can incorporate with this Economy is the management of a country's economy and resources in this way it can give us maximum benefits and minimum utilization of these resources.

What are the economic Goals?

1- Maximum Employment creation in-country 

2-Maximum price stability in term of our buying power toward necessities 

3-Maximum Growth of production and manufacture and export.

What are the economic indicators and their function?

There is a lot of indicators, some are common and some are countries that adjust and modified according to their country economy are An economic indicator is anticipation we can say provides us valuable information and data such as earnings reports, and economic summaries, consumer leverage ratio, industrial production, bankruptcies, gross domestic production in the country. We already know about the economy above paragraph its allocation of resources in an efficient way.

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List of Indicators 

1-Gross Domestic Product 

In easy terms, GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period.

How this indicator tells us the health of the economy of a country 

we have to add up all data like Money spend of consumer and government in a given period of time like 2020 to 2021 let say countries progress in term of Consumption + Investment + Government Spending + Net Exports 

Formula GDP = C + I + G + NX

2-The Stock Market:

It is a specific place where shares of pubic listed companies are traded. A stock exchange facilitates stock brokers to trade company stocks and other securities.

How this indicator tells us the health of the economy of a country 

The Companies list shares of their stock on an exchange through a process called an initial public offering or IPO. Investors purchase those shares, which allows the company to raise money to grow its business. so more people willing to buy a share, more business will be expanded, more jobs will be created.

3-Unemployment. 

employment is an economic situation in which all available labor resources are being used in the most efficient way possible means the state of having a paid job—of being employed. To employ someone is to pay them to work. An employer provides employment to employees. 

How this indicator tells us the health of the economy of a country

So  state have job opportunities for people mean that more they are producing, more household income, more people have buying power, more people  use money, more tax will be collected and the government will use this tax revenue for making more facilities in countries like health and infrastructure 

4-Balance of Trade

The trade balance is the net sum of a country's exports and imports of goods It is also a difference between the value of goods and services exported out of a country and the value of goods and services imported into the country

How this indicator tells us the health of the economy of a country

More country export and greater than import will make a country surplus in the balance of payment, the country is making money, so country can import and make their debt obligation by through their own earned income and wealth 

5-Interest Rates

 IT is a very important indicator that tells us about the interest rate is the rate charged by a lender of money or credit to a borrower. In short, from the borrower's point of view, it is the 'cost' of borrowing, and from the lender's point of view, it is the reward for lending.

How this indicator tells us the health of the economy of a country

People decide to do something and save money choice according to the interest rate in the country's economy, If a country has a high interest rate this means that more people save money in banks rather than doing business or investing in the country. Another view has borrowed the cost of capital too many high people will less borrow and spend less as well 

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