Gross Domestic Product (GDP)
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GDP is a popular method used to measure income and output of a particular country. It is also known as GDI or Gross Domestic Income. It has been defined as aggregate worth, in a market, of all finished goods and services that are produced at a particular point in time. Period of time taken for GDP calculations is a calendar year.
GDP is a popular method used to measure income and output of a particular country. It is also known as GDI or Gross Domestic Income. It has been defined as aggregate worth, in a market, of all finished goods and services that are produced at a particular point in time. Period of time taken for GDP calculations is a calendar year.
GDP is also regarded as sum of value that is added at each and every stage of production. It is also known as aggregate value of every finished good and services that are produced within a certain period of time in a particular state. It is normally expressed in terms of money. Over years, gross domestic product has been an important indicator of economic welfare of any particular country.
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Measuring gross domestic product
There are several ways of measuring gross domestic product of a country. However, most commonly followed method involves adding several factors like consumption, governmental expenditure, gross investment and difference of exports and imports, to obtain GDP figure.
GDP vs GNP
GDP is different from GNP or gross national product as in gross national product includes net foreign income in its calculations, instead of net imports or exports. GDP is more regional or geographic compared to GNP while GNP focuses on nations.
Components of GDP
There are several factors that are important in context of gross domestic product of a particular country. The formula used for calculating GDP is as follows:
[quote]GDP= C + I + G + (X-M)[/quote]
C stands for consumption done at private levels in that particular country whose GDP is being measured. I is investment made by various entities, for example- families and business establishments. G stands for expenditure made by governmental entities, X stands for exports and M stands for imports.
GDP growth
Current GDP is gross domestic product in terms of prices of that particular period when it is being calculated. Nominal GDP growth is increase of gross domestic product in nominal prices. It is not adjusted against changes in price. Real GDP growth is increase of gross domestic product and it is adjusted against changes in prices.
View GDP values in current prices in US dollar terms, GDP (PPP), GDP growth, and GDP per capita,as well GDP in national currency or on fixed exchange rates, all found in the EconomyWatch Economics Statistics database.
