BOP Analysis of India, US and Germany From 2004-2014

5/20/2018 BOP Analysis of India, US and Germany From 2004-2014

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Roll No. Name

Subrat

15 Vincent Dsouza

16

Abhishek Gandhi17 Ravi Gowda

35 Manjunath Patel

Smita Samuel

Class : MFM III

Submitted To : Prof. Asha

Submitted By : Group No. 02

International Finance 1

BOP Analysis

of India, US

and Germany

from 2004-2014


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For internal use only

What is Balance of Payments?

Importance of the Balance of Payments?

The General Rule in BOP Accounting ?

The various components of a BOP statement?

Trends in Indias Balance of Payments?

Trends in US Balance of Payments?

Trends in Germany Balance of Payments?

Agenda

2International Finance


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What is BALANCE OF PAYMENT?

The balance of payments of a country is a systematic record

of all economic transactions between the residents of acountry and the rest of the world. It presents a classified

record of all receipts on account of goods exported, services

rendered and capital received by residents and payments

made by theme on account of goods imported and servicesreceived from the capital transferred to non-residents or

foreigners.



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IMPORTANCE OF THE BALANCE OF

PAYMENTS

BOP records all the transactions that create demand

for and supply of a currency. This indicates demand-supply equation of the currency. This can drivechanges in exchange rate of the currency with othercurrencies.

BOP may confirm trend in economys internationaltrade and exchange rate of the currency. This mayalso indicate change or reversal in the trend.

This may indicate policy shift of the monetary

authority (RBI) of the country.



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The General Rule in BOP Accounting

a) If a transaction earns foreign currency for the nation,

it is a credit and is recorded as a plus item.

b) If a transaction involves spending of foreign

currency it is a debit and is recorded as a negative

item.




The various components of a BOP statement

A. Current Account

B. Capital Account

C. IMF

D. SDR Allocation

E. Errors & Omissions

F. Reserves and Monetary Gold




TRENDS IN INDIAS BALANCE OF PAYMENTS

A country, like India, which is on the path of

development generally, experiences a deficit balanceof payments situation.

This is because such a country requires imported

machines, technology and capital equipments in order

to successfully launch and carry out the programmed of

industrialization




India Balance of Trade

India recorded a trade deficit of 12228.60 USD

Million in July of 2014. Balance of Trade in Indiaaveraged -1879.17 USD Million from 1957 until 2014,

reaching an all time high of 258.90 USD Million in

March of 1977 and a record low of -20210.90 USD

Million in October of 2012. Balance of Trade in Indiais reported by the Ministry of Commerce and Industry,

India.


Actual Previous Highest Lowest Dates Unit Frequency

-12228.6 -11763.2 258.9 -20210.9 1957 -2014

USD

Million Monthly




India had been recording sustained trade deficits due

to low exports base and high imports of coal and oil forits energy needs. India is leading exporter of petroleum

products, gems and jewelry, textiles, engineering

goods, chemicals and services. Main trading partners

are European Union countries, United States, Chinaand UAE. This page provides - India Balance of Trade -

actual values, historical data, forecast, chart, statistics,

economic calendar and news. Content for - India

Balance of Trade - was last refreshed on Thursday,August 21, 2014.




United States Balance of Trade

The United States recorded a trade deficit of 41538

USD Million in June of 2014. Balance of Trade in theUnited States averaged -12573.26 USD Million from

1950 until 2014, reaching an all time high of 1946

USD Million in June of 1975 and a record low of -

67823 USD Million in August of 2006. Balance ofTrade in the United States is reported by the U.S.

Census Bureau



-41538.00 -44392.00 1946.00 -67823.00 1950 -2014

USD

Million Monthly




The United States has been running consistent trade

deficits since 1980 due to high imports of oil and consumerproducts. In recent years, the biggest trade deficits were

recorded with China, Japan, Germany, Mexico and Saudi

Arabia. United States records trade surpluses with Hong

Kong, Australia, Netherlands and Belgium. This pageprovides - United States Balance of Trade - actual values,

historical data, forecast, chart, statistics, economic calendar

and news. Content for - United States Balance of Trade -

was last refreshed on Thursday, August 21, 2014.



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Germany Balance of Trade

Germany recorded a trade surplus of 16406 EUR

Million in June of 2014. Balance of Trade in Germanyaveraged 4290.10 EUR Million from 1950 until 2014,

reaching an all time high of 21410.60 EUR Million in

March of 2013 and a record low of -535.91 EUR

Million in April of 1991. Balance of Trade in Germanyis reported by the Federal Statistical Office



16406.00 17800.00 21410.60 -535.91 1950 -2014

EUR

Million Monthly


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Germany traditionally had current account surpluses.

Since 1991 Germany has been experiencing current account deficits.

This is largely due to German reunification andt he resultant need to absorb more output

domestically to rebuild the former East Germany

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Germany runs regular trade surpluses primarily due to its

strong export of cars and other machinery. Germany alsoexports chemical products, hardware, electronic equipment,

metals and pharmaceuticals. Germany main imports are

electronic devices, fuel, vehicle parts and metals. Main

trading partners are France, Netherlands, United States andItaly.


Foreign trade of goods in 2013


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Foreign trade of goods in 2013

Export % Import %

Intermediate goods 31.5 Intermediate goods 30.4

Capital goods 27.2 Capital goods 19.7

Motor vehicles 17.5 Motor vehicles 9.4

Consumer goods 17.2 Consumer goods 20.2

Energy 2.8 Energy 14.8

Unclassifiable goods 2.7 Agricultural goods 3.4

Agricultural goods 1 Unclassifiable goods 2.2

Total 100 Total 100

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For internal use only19


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Thank You


Documents

BOP Analysis of India, US and Germany From 2004-2014