ECON 3535 1st Edition Lecture 1 Current LectureGlobal Economic Growth:real GDP growth (2014) = 2.6%2015 = 3 (was 3.4%)U.S.: Forecast 2015: 3.2% (was 3%)Reasons:Falling oil prices1 cent = $1bincrease in disposable incomeKey contributor to global economic growthEurozone:Two recessions since 20072015: 1.1% (was 1.8%)ReasonsHigh government debtLack of international competitivenessEmerging Markets:2015: 4.8% (was 5.3%)China: 7.1% (7.5%)India: 6.4% (6.3%)Brazil: 1% (2.7%)Reasons: Debt obligationsWeak currenciesRussia:2015: -2.9% (0.5%)Reasons:Falling oil pricesWestern sanctions (Ukraine)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The Resource Paradox:Occurs every ten years in most developing countries (according to the World Bank)Capital= physicalKinds of Capital:Produced: value of manufactured goodsNatural: value of natural resources in a countryIntangible: Social: value of systems and infrastructure (financial)Human: value of individuals; average education of citizen, per capita wealth (sum of nation’s capital/population = wealth/person)Top 10 Wealthiest Countries:1. Norway2. Luxembourg3. Denmark4. U.S.5. Switzerland6. U.K.7. Sweden8. Ireland9. Netherlands10. FranceTop 10 Poorest Countries: 1. Zimbabwe 2. Rwanda 3. Liberia 4. Niger 6. Sierra Leon 7. Mulawi 8. Madagascar 9. Ethiopia 10.