ECONOMIC INDICATOR

An economic indicator (or business indicator) is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices, earnings reports, and economic summaries. Examples: unemployment rate, Consumer Price Index (a measure for inflation), Consumer Leverage Ratio, industrial production, bankruptcies, Gross Domestic Product, stock market prices, money supply changes.

GDP (GROSS DOMESTIC PRODUCT)

The Gross Domestic Product (GDP) in Pakistan was worth 211.1 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of Pakistan is roughly equivalent to 0.28 percent of the world economy. Historically, from 1960 until 2010, Pakistan GDP averaged 45.6 billon USD reaching an all time high of 174.8 billion USD in December of 2010and a record low of 3.7 billion USD in December of 1960. The gross domestic product (GDP) measures of national income and output for a given countrys economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. There also a chart with historical data for Pakistan GDP

UNEMPLOYMENT
The unemployment rate (10 years and over) in Pakistan was last reported at 5.7 percent in the second quarter of 2011. Historically, from 1990 until 2011, Pakistan Unemployment Rate averaged 5.7600 Percent reaching an all time high of 7.8000 Percent in June of 2002 and a record low of 3.1300 Percent in December of 1990. The unemployment rate can be defined as the number of people actively looking for a job as a percentage of the labor force. This page includes a chart with historical data for Pakistan Unemployment Rate.

INFLATION
Inflation rate in Pakistan was recorded at 9.6 percent in July of 2012. Historically, from 2003 until 2012, Pakistan Inflation Rate averaged 10.6 Percent reaching an all time high of 25.3 Percent in August of 2008 and a record low of 1.4 Percent in July of 2003. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. This page includes a chart with historical data for Pakistan Inflation Rate.

ECONOMIC GROWTH
This is critical for a business to keep an eye on. The demand for their good or service is likely to depend on the income levels of consumers. Economic growth means that the income level in the economy is rising. However, how long will this last? Is growth too fast, in which case is higher inflation likely? Businesses also need to think carefully how sensitive their product is to changes in income. If their good is more of a luxury good, then demand may rise significantly as growth rises and they need to ensure they have the capacity to meet demand. However, they must also watch carefully in case the economy heads for a recession as this will in turn mean a large fall in demand and they may need to keep their capacity and therefore costs under control. Pakistan economy number in the world is 25th.

BALANCE OF PAYMENTS
The balance of payments is a measure of the trade performance of an economy. It measures the money flowing in from selling goods and services and from investment (credits on the balance of payments account) and the money flowing overseas from the buying of goods and services from overseas (imports) and investment overseas. The economy may have a surplus or deficit on the current account of the balance of payments (goods and services). A deficit means

that imports of goods and services are greater than exports, whereas a surplus means that exports are greater than imports. According to the Balance of Payment projections, prepared by the Ministry of Finance based on data of State Bank of Pakistan (SBP) and Planning Commission, foreign exchange reserves of SBP that were $2.225 billion in 2010-11 will improve to $3.762 billion in 2011-12 and further increase to $4.846 billion in next fiscal year 2012-13. According to the Balance of Payment projections, prepared by the Ministry of Finance based on data of State Bank of Pakistan (SBP) and Planning Commission Balance of payment in fiscal year 2012-13 where Debit Amount 4,068 US Million $, and Credit Amount is 4,017 US Million $.

REFERENCES

HTTP://WWW.SBP.ORG.PK/ECODATA/BOP-SERVICES/BOP.PDF HTTP://WWW.DAILYTIMES.COM.PK/DEFAULT.ASP?PAGE=2012%5C05%5C13%5CSTO RY_13-5-2012_PG5_2 HTTP://FINANCE.GOV.PK/SURVEY_0910.HTML HTTP://EN.WIKIPEDIA.ORG/WIKI/ECONOMY_OF_PAKISTAN HTTP://WWW.SBP.ORG.PK/ECODATA/INDEX2.ASP HTTP://WWW.PAKBOI.GOV.PK/INDEX.PHP?OPTION=COM_CONTENT&VIEW=ARTICLE&I D=118&ITEMID=134 HTTP://EN.WIKIPEDIA.ORG/WIKI/ECONOMIC_INDICATOR