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Grossdomesticproduct
FromWikipedia,thefreeencyclopedia

Grossdomesticproduct(GDP)isa
monetarymeasureofthevalueofallfinal
goodsandservicesproducedinaperiod
(quarterlyoryearly).NominalGDP
estimatesarecommonlyusedto
determinetheeconomicperformanceofa
wholecountryorregion,andtomake
internationalcomparisons.NominalGDP,
however,doesnotreflectdifferencesin
thecostoflivingandtheinflationratesof
thecountriesthereforeusingaGDPPPP
percapitabasisisarguablymoreuseful
whencomparingdifferencesinliving
standardsbetweennations.

AmapofworldeconomiesbysizeofGDP(nominal)inUSD,
WorldBank,2014. [1]

GDPisnotacompletemeasureofeconomicactivity.It
accountsforfinaloutputorvalueaddedateachstageof
production,butnottotaloutputortotalsalesalongthe
entireproductionprocess.Itdeliberatelyleavesout
businesstobusiness(B2B)transactionsintheearlyand
intermediatestagesofproduction,aswellassalesofused
goods.IntheUnitedStates,theBureauofEconomic
Analysis(BEA)hasintroducedanewquarterlystatistic
calledgrossoutput(GO),abroadermeasurethatattempts
toadduptotalsalesorrevenuesatallstagesof
production.[2]MarkSkousenwasthefirsteconomistto
advocateGOasanimportantmacroeconomictool.[3]
Othercountriesarefollowingsuit,suchastheUnited
Kingdom,whichnowproducesanannualstatisticcalled
TotalOutput.

SelectionofGDPPPPdata(top10countries
andblocks,2014)innoparticularorder

GDPattemptstomeasuretheuseeconomy,i.e.,the
valueoffinishedgoodsandservicesreadytobeusedbyconsumers,businessandgovernment.GDPis
similartothebottomline(earnings)ofanaccountingstatement,whichdeterminedthevalueadded
orthevalueoffinaluse.GOisanestimateofthemakeeconomy,i.e.,themonetaryvalueofsalesat
allstagesofproduction.Thus,GOissimilartothetopline(revenuesorsales)ofanaccounting
statement.GDPandGOarenotmutuallyexclusive,butarecomplementarywaysofexaminingthestate
ofaneconomy.
AsDaleJorgenson,SteveLandefeld,andWilliamNordhausconcludeinGrossoutput[GO]isthe
naturalmeasureoftheproductionsector,whilenetoutput[GDP]isappropriateasameasureofwelfare.
Botharerequiredinacompletesystemofaccounts.[4]ThelargestGDP'sbycontinentare:theUnited
StatesintheAmericas,[5]GermanyinEurope,[6]NigeriainAfrica,[7]ChinainAsia[8]andAustraliain
Oceania.[9]

Contents

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Contents
1 Definition
2 History
3 DeterminingGrossDomesticproduct(GDP)
3.1 Productionapproach
3.2 Incomeapproach
3.3 Expenditureapproach
3.3.1 ComponentsofGDPbyexpenditure
3.3.2 ExamplesofGDPcomponentvariables
4 GDPvsGNI
4.1 Internationalstandards
4.2 Nationalmeasurement
4.3 Interestrates
5 NominalGDPandadjustmentstoGDP
6 Crossbordercomparisonandpurchasingpowerparity
7 PerunitGDP
8 StandardoflivingandGDP:Wealthdistributionandexternalities
9 Limitationsandcriticisms
10 ListsofcountriesbytheirGDP
11 Listofotherapproachestothemeasurementof(economic)progress
12 Seealso
13 Notesandreferences
14 Furtherreading
15 Externallinks
15.1 Global
15.2 Data
15.3 Articlesandbooks

Definition
TheOECDdefinesGDPas"anaggregatemeasureofproductionequaltothesumofthegrossvalues
addedofallresident,institutionalunitsengagedinproduction(plusanytaxes,andminusanysubsidies,
onproductsnotincludedinthevalueoftheiroutputs).[10]GDPbyIndustrycanalsomeasurethe
relativecontributionofanindustrysector.ThisispossiblebecauseGDPisameasureof'valueadded'
ratherthansalesitaddseachfirm'svalueadded(thevalueofitsoutputminusthevalueofgoodsthat
areusedupinproducingit).Forexample,afirmbuyssteelandaddsvaluetoitbyproducingacar
doublecountingwouldoccurifGDPaddedtogetherthevalueofthesteelandthevalueofthecar.[11]
Grossoutput(GO)measuressalesatallstagesofproductionandthereforeinvolvessomedegreeof
doublecounting.Becauseitisbasedonvalueadded,GDPalsoincreaseswhenanenterprisereduces
itsuseofmaterialsorotherresources('intermediateconsumption')toproducethesameoutput.The
morefamiliaruseofGDPestimatesistocalculatethegrowthoftheeconomyfromyeartoyear(and
recentlyfromquartertoquarter).ThepatternofGDPgrowthisheldtoindicatethesuccessorfailureof
economicpolicyandtodeterminewhetheraneconomyis'inrecession'.

History

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WilliamPettycameupwithabasicconceptofGDPtodefendlandlordsagainstunfairtaxationduring
warfarebetweentheDutchandtheEnglishbetween1652and1674.[12]CharlesDavenantdevelopedthe
methodfurtherin1695.[13]ThemodernconceptofGDPwasfirstdevelopedbySimonKuznetsforaUS
Congressreportin1934.[14]Inthisreport,Kuznetswarnedagainstitsuseasameasureofwelfare(see
belowunderlimitationsandcriticisms).AftertheBrettonWoodsconferencein1944,GDPbecamethe
maintoolformeasuringacountry'seconomy.[15]AtthattimeGrossNationalProduct(GNP)wasthe
preferredestimate,whichdifferedfromGDPinthatitmeasuredproductionbyacountry'scitizensat
homeandabroadratherthanits'residentinstitutionalunits'(seeOECDdefinitionabove).Theswitchto
GDPwasinthe1980s.
ThehistoryoftheconceptofGDPshouldbedistinguishedfromthehistoryofchangesinwaysof
estimatingit.Thevalueaddedbyfirmsisrelativelyeasytocalculatefromtheiraccounts,butthevalue
addedbythepublicsector,byfinancialindustries,andbyintangibleassetcreationismorecomplex.
Theseactivitiesareincreasinglyimportantindevelopedeconomies,andtheinternationalconventions
governingtheirestimationandtheirinclusionorexclusioninGDPregularlychangeinanattemptto
keepupwithindustrialadvances.Inthewordsofoneacademiceconomist"TheactualnumberforGDP
isthereforetheproductofavastpatchworkofstatisticsandacomplicatedsetofprocessescarriedouton
therawdatatofitthemtotheconceptualframework."[16]
AngusMaddisoncalculatedhistoricalGDPfiguresgoingbackto1830andbefore.

DeterminingGrossDomesticproduct(GDP)
GDPcanbedeterminedinthreeways,allofwhichshould,inprinciple,givethesameresult.Theyare
theproduction(oroutputorvalueadded)approach,theincomeapproach,ortheexpenditureapproach.
Themostdirectofthethreeistheproductionapproach,whichsumstheoutputsofeveryclassof
enterprisetoarriveatthetotal.Theexpenditureapproachworksontheprinciplethatalloftheproduct
mustbeboughtbysomebody,thereforethevalueofthetotalproductmustbeequaltopeople'stotal
expendituresinbuyingthings.Theincomeapproachworksontheprinciplethattheincomesofthe
productivefactors("producers,"colloquially)mustbeequaltothevalueoftheirproduct,anddetermines
GDPbyfindingthesumofallproducers'incomes.[17]

Productionapproach
ThisapproachmirrorstheOECDdefinitiongivenabove.
1.Estimatethegrossvalueofdomesticoutputoutofthemanyvariouseconomicactivities
2.Determinetheintermediateconsumption,i.e.,thecostofmaterial,suppliesandservicesusedto
producefinalgoodsorservices.
3.Deductintermediateconsumptionfromgrossvaluetoobtainthegrossvalueadded.
Grossvalueadded=grossvalueofoutputvalueofintermediateconsumption.
Valueofoutput=valueofthetotalsalesofgoodsandservicesplusvalueofchangesintheinventories.
Thesumofthegrossvalueaddedinthevariouseconomicactivitiesisknownas"GDPatfactorcost".
GDPatfactorcostplusindirecttaxeslesssubsidiesonproducts="GDPatproducerprice".

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Formeasuringoutputofdomesticproduct,economicactivities(i.e.industries)areclassifiedintovarious
sectors.Afterclassifyingeconomicactivities,theoutputofeachsectoriscalculatedbyanyofthe
followingtwomethods:
1.Bymultiplyingtheoutputofeachsectorbytheirrespectivemarketpriceandaddingthemtogether
2.Bycollectingdataongrosssalesandinventoriesfromtherecordsofcompaniesandaddingthem
together
Thegrossvalueofallsectorsisthenaddedtogetthegrossvalueadded(GVA)atfactorcost.
Subtractingeachsector'sintermediateconsumptionfromgrossoutputgivestheGDPatfactorcost.
AddingindirecttaxminussubsidiesinGDPatfactorcostgivesthe"GDPatproducerprices".

Incomeapproach
ThesecondwayofestimatingGDPistouse"thesum
ofprimaryincomesdistributedbyresidentproducer
units".[10]
IfGDPiscalculatedthiswayitissometimescalled
grossdomesticincome(GDI),orGDP(I).GDI
shouldprovidethesameamountastheexpenditure
methoddescribedlater.(Bydefinition,GDI=GDP.
Inpractice,however,measurementerrorswillmake
thetwofiguresslightlyoffwhenreportedbynational
statisticalagencies.)

ListofcountriesbyGDP(PPP)percapitaby2014
InternationalMonetaryFund.

ThismethodmeasuresGDPbyaddingincomesthat
firmspayhouseholdsforfactorsofproductionthey
hirewagesforlabour,interestforcapital,rentfor
landandprofitsforentrepreneurship.
TheUS"NationalIncomeandExpenditure
Accounts"divideincomesintofivecategories:
1.Wages,salaries,andsupplementarylabour
income
2.Corporateprofits
3.Interestandmiscellaneousinvestmentincome
4.Farmers'incomes
5.Incomefromnonfarmunincorporated
businesses

Countriesby2015GDP(nominal)percapita. [18]
>$64,000

$2,0004,000

$32,00064,000

$1,0002,000

$16,00032,000

$5001,000

$8,00016,000

<$500

$4,0008,000

unavailable

Thesefiveincomecomponentssumtonetdomestic
incomeatfactorcost.
TwoadjustmentsmustbemadetogetGDP:
1.Indirecttaxesminussubsidiesareaddedtogetfromfactorcosttomarketprices.
2.Depreciation(orcapitalconsumptionallowance)isaddedtogetfromnetdomesticproductto
grossdomesticproduct.
Totalincomecanbesubdividedaccordingtovariousschemes,leadingtovariousformulaeforGDP
measuredbytheincomeapproach.Acommononeis:
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GDP=compensationofemployees+gross
operatingsurplus+grossmixedincome+
taxeslesssubsidiesonproductionandimports
GDP=COE+GOS+GMI+TP&MSP&
M

'Compensationofemployees(COE)measures
thetotalremunerationtoemployeesforwork
done.Itincludeswagesandsalaries,aswellas
U.SGDPcomputedontheincomebasis
employercontributionstosocialsecurityand
othersuchprograms.
Grossoperatingsurplus(GOS)isthesurplus
duetoownersofincorporatedbusinesses.Oftencalledprofits,althoughonlyasubsetoftotal
costsaresubtractedfromgrossoutputtocalculateGOS.
Grossmixedincome(GMI)isthesamemeasureasGOS,butforunincorporatedbusinesses.This
oftenincludesmostsmallbusinesses.
ThesumofCOE,GOSandGMIiscalledtotalfactorincomeitistheincomeofallofthefactorsof
productioninsociety.ItmeasuresthevalueofGDPatfactor(basic)prices.Thedifferencebetween
basicpricesandfinalprices(thoseusedintheexpenditurecalculation)isthetotaltaxesandsubsidies
thatthegovernmenthasleviedorpaidonthatproduction.Soaddingtaxeslesssubsidiesonproduction
andimportsconvertsGDPatfactorcosttoGDP(I).
Totalfactorincomeisalsosometimesexpressedas:
Totalfactorincome=employeecompensation+corporateprofits+proprietor'sincome+rental
income+netinterest[19]
YetanotherformulaforGDPbytheincomemethodis:

whereR:rents
I:interests
P:profits
SA:statisticaladjustments(corporateincometaxes,dividends,undistributedcorporateprofits)
W:wages.

Expenditureapproach
ThethirdwaytoestimateGDPistocalculatethesumofthefinalusesofgoodsandservices(alluses
exceptintermediateconsumption)measuredinpurchasers'prices.[10]
Ineconomics,mostthingsproducedareproducedforsaleandthensold.Therefore,measuringthetotal
expenditureofmoneyusedtobuythingsisawayofmeasuringproduction.Thisisknownasthe
expendituremethodofcalculatingGDP.Notethatifyouknityourselfasweater,itisproductionbut
doesnotgetcountedasGDPbecauseitisneversold.Sweaterknittingisasmallpartoftheeconomy,
butifonecountssomemajoractivitiessuchaschildrearing(generallyunpaid)asproduction,GDP
ceasestobeanaccurateindicatorofproduction.Similarly,ifthereisalongtermshiftfromnonmarket
provisionofservices(forexamplecooking,cleaning,childrearing,doityourselfrepairs)tomarket
provisionofservices,thenthistrendtowardincreasedmarketprovisionofservicesmaymaskadramatic

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decreaseinactualdomesticproduction,resultinginoverlyoptimisticandinflatedreportedGDP.Thisis
particularlyaproblemforeconomieswhichhaveshiftedfromproductioneconomiestoservice
economies.
ComponentsofGDPbyexpenditure
GDP(Y)isthesumofconsumption(C),investment(I),
governmentspending(G)andnetexports(XM).
Y=C+I+G+(XM)
HereisadescriptionofeachGDPcomponent:
C(consumption)isnormallythelargestGDP
componentintheeconomy,consistingofprivate
(householdfinalconsumptionexpenditure)inthe
economy.Thesepersonalexpendituresfallunderoneof
U.S.GDPcomputedontheexpenditure
thefollowingcategories:durablegoods,nondurable
basis.
goods,andservices.Examplesincludefood,rent,
jewelry,gasoline,andmedicalexpensesbutdoesnot
includethepurchaseofnewhousing.
I(investment)includes,forinstance,businessinvestmentinequipment,butdoesnotinclude
exchangesofexistingassets.Examplesincludeconstructionofanewmine,purchaseofsoftware,
orpurchaseofmachineryandequipmentforafactory.Spendingbyhouseholds(notgovernment)
onnewhousesisalsoincludedininvestment.Incontrasttoitscolloquialmeaning,"investment"
inGDPdoesnotmeanpurchasesoffinancialproducts.Buyingfinancialproductsisclassedas
'saving',asopposedtoinvestment.Thisavoidsdoublecounting:ifonebuyssharesinacompany,
andthecompanyusesthemoneyreceivedtobuyplant,equipment,etc.,theamountwillbe
countedtowardGDPwhenthecompanyspendsthemoneyonthosethingstoalsocountitwhen
onegivesittothecompanywouldbetocounttwotimesanamountthatonlycorrespondstoone
groupofproducts.Buyingbondsorstocksisaswappingofdeeds,atransferofclaimsonfuture
production,notdirectlyanexpenditureonproducts.
G(governmentspending)isthesumofgovernmentexpendituresonfinalgoodsandservices.It
includessalariesofpublicservants,purchasesofweaponsforthemilitaryandanyinvestment
expenditurebyagovernment.Itdoesnotincludeanytransferpayments,suchassocialsecurityor
unemploymentbenefits.
X(exports)representsgrossexports.GDPcapturestheamountacountryproduces,including
goodsandservicesproducedforothernations'consumption,thereforeexportsareadded.
M(imports)representsgrossimports.Importsaresubtractedsinceimportedgoodswillbe
includedinthetermsG,I,orC,andmustbedeductedtoavoidcountingforeignsupplyas
domestic.
AfullyequivalentdefinitionisthatGDP(Y)isthesumoffinalconsumptionexpenditure(FCE),
grosscapitalformation(GCF),andnetexports(XM).
Y=FCE+GCF+(XM)
FCEcanthenbefurtherbrokendownbythreesectors(households,governmentsandnonprofit
institutionsservinghouseholds)andGCFbyfivesectors(nonfinancialcorporations,financial
corporations,households,governmentsandnonprofitinstitutionsservinghouseholds
(http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Glossary:Non
profit_institutions_serving_households_(NPISH))).Theadvantageofthisseconddefinitionisthat

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expenditureissystematicallybrokendown,firstly,bytypeoffinaluse(finalconsumptionorcapital
formation)and,secondly,bysectorsmakingtheexpenditure,whereasthefirstdefinitionpartlyfollowsa
mixeddelimitationconceptbytypeoffinaluseandsector.
NotethatC,G,andIareexpendituresonfinalgoodsandservicesexpendituresonintermediategoods
andservicesdonotcount.(Intermediategoodsandservicesarethoseusedbybusinessestoproduce
othergoodsandserviceswithintheaccountingyear.[20])
AccordingtotheU.S.BureauofEconomicAnalysis,whichisresponsibleforcalculatingthenational
accountsintheUnitedStates,"Ingeneral,thesourcedatafortheexpenditurescomponentsare
consideredmorereliablethanthosefortheincomecomponents[seeincomemethod,below]."[21]
ExamplesofGDPcomponentvariables
C,I,G,andNX(netexports):Ifapersonspendsmoneytorenovateahoteltoincreaseoccupancyrates,
thespendingrepresentsprivateinvestment,butifhebuyssharesinaconsortiumtoexecutethe
renovation,itissaving.TheformerisincludedwhenmeasuringGDP(inI),thelatterisnot.However,
whentheconsortiumconducteditsownexpenditureonrenovation,thatexpenditurewouldbeincluded
inGDP.
Ifahotelisaprivatehome,spendingforrenovationwouldbemeasuredasconsumption,butifa
governmentagencyconvertsthehotelintoanofficeforcivilservants,thespendingwouldbeincludedin
thepublicsectorspending,orG.
Iftherenovationinvolvesthepurchaseofachandelierfromabroad,thatspendingwouldbecountedas
C,G,orI(dependingonwhetheraprivateindividual,thegovernment,orabusinessisdoingthe
renovation),butthencountedagainasanimportandsubtractedfromtheGDPsothatGDPcountsonly
goodsproducedwithinthecountry.
Ifadomesticproducerispaidtomakethechandelierforaforeignhotel,thepaymentwouldnotbe
countedasC,G,orI,butwouldbecountedasanexport.
A"productionboundary"delimitswhatwillbe
countedasGDP.
"Oneofthefundamentalquestionsthat
mustbeaddressedinpreparingthe
nationaleconomicaccountsishowto
definetheproductionboundarythatis,
whatpartsofthemyriadhumanactivities
aretobeincludedinorexcludedfromthe

countriesbyrealGDPgrowthrate(2014).

measureoftheeconomicproduction."[22]

Alloutputformarketisatleastintheoryincludedwithintheboundary.Marketoutputisdefinedasthat
whichissoldfor"economicallysignificant"priceseconomicallysignificantpricesare"priceswhich
haveasignificantinfluenceontheamountsproducersarewillingtosupplyandpurchaserswishto
buy."[23]Anexceptionisthatillegalgoodsandservicesareoftenexcludedeveniftheyaresoldat
economicallysignificantprices(AustraliaandtheUnitedStatesexcludethem).

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Thisleavesnonmarketoutput.Itispartlyexcludedandpartlyincluded.First,"naturalprocesseswithout
humaninvolvementordirection"areexcluded.[24]Also,theremustbeapersonorinstitutionthatowns
orisentitledtocompensationfortheproduct.Anexampleofwhatisincludedandexcludedbythese
criteriaisgivenbytheUnitedStates'nationalaccountsagency:"thegrowthoftreesinanuncultivated
forestisnotincludedinproduction,buttheharvestingofthetreesfromthatforestisincluded."[25]
Withinthelimitssofardescribed,theboundaryisfurtherconstrictedby"functionalconsiderations."[26]
TheAustralianBureauforStatisticsexplainsthis:"Thenationalaccountsareprimarilyconstructedto
assistgovernmentsandotherstomakemarketbasedmacroeconomicpolicydecisions,including
analysisofmarketsandfactorsaffectingmarketperformance,suchasinflationandunemployment."
Consequently,productionthatis,accordingtothem,"relativelyindependentandisolatedfrommarkets,"
or"difficulttovalueinaneconomicallymeaningfulway"[i.e.,difficulttoputapriceon]isexcluded.[27]
Thusexcludedareservicesprovidedbypeopletomembersoftheirownfamiliesfreeofcharge,suchas
childrearing,mealpreparation,cleaning,transportation,entertainmentoffamilymembers,emotional
support,careoftheelderly.[28]Mostotherproductionforown(orone'sfamily's)useisalsoexcluded,
withtwonotableexceptionswhicharegiveninthelistlaterinthissection.
Nonmarketoutputsthatareincludedwithintheboundaryarelistedbelow.Since,bydefinition,theydo
nothaveamarketprice,thecompilersofGDPmustimputeavaluetothem,usuallyeitherthecostofthe
goodsandservicesusedtoproducethem,orthevalueofasimilaritemthatissoldonthemarket.
Goodsandservicesprovidedbygovernmentsandnonprofitorganizationsfreeofchargeorfor
economicallyinsignificantpricesareincluded.Thevalueofthesegoodsandservicesisestimated
asequaltotheircostofproduction.Thisignorestheconsumersurplusgeneratedbyanefficient
andeffectivegovernmentsuppliedinfrastructure.Forexample,governmentprovidedcleanwater
conferssubstantialbenefitsaboveitscost.Ironically,lackofsuchinfrastructurewhichwould
resultinhigherwaterprices(andprobablyhigherhospitalandmedicationexpenditures)wouldbe
reflectedasahigherGDP.Thismayalsocauseabiasthatmistakenlyfavorsinefficient
privatizationssincesomeoftheconsumersurplusfromprivatizedentities'saleofgoodsand
servicesareindeedreflectedinGDP.[29]
Goodsandservicesproducedforownusebybusinessesareattemptedtobeincluded.Anexample
ofthiskindofproductionwouldbeamachineconstructedbyanengineeringfirmforuseinits
ownplant.
Renovationsandupkeepbyanindividualtoahomethatsheownsandoccupiesareincluded.The
valueoftheupkeepisestimatedastherentthatshecouldchargeforthehomeifshedidnot
occupyitherself.Thisisthelargestitemofproductionforownusebyanindividual(asopposed
toabusiness)thatthecompilersincludeinGDP.[29]Ifthemeasureuseshistoricalorbookprices
forrealestate,thiswillgrosslyunderestimatethevalueoftherentinrealestatemarketswhich
haveexperiencedsignificantpriceincreases(oreconomieswithgeneralinflation).Furthermore,
depreciationschedulesforhousesoftenacceleratetheaccounteddepreciationrelativetoactual
depreciation(awellbuilthousecanbelivedinforseveralhundredyearsaverylongtimeafter
ithasbeenfullydepreciated).Insummary,thisislikelytogrosslyunderestimatethevalueof
existinghousingstockonconsumers'actualconsumptionorincome.
Agriculturalproductionforconsumptionbyoneselforone'shouseholdisincluded.
Services(suchaschequeingaccountmaintenanceandservicestoborrowers)providedbybanks
andotherfinancialinstitutionswithoutchargeorforafeethatdoesnotreflecttheirfullvaluehave
avalueimputedtothembythecompilersandareincluded.Thefinancialinstitutionsprovidethese
servicesbygivingthecustomeralessadvantageousinterestratethantheywouldiftheservices
wereabsentthevalueimputedtotheseservicesbythecompilersisthedifferencebetweenthe
interestrateoftheaccountwiththeservicesandtheinterestrateofasimilaraccountthatdoesnot
havetheservices.AccordingtotheUnitedStatesBureauforEconomicAnalysis,thisisoneofthe
largestimputeditemsintheGDP.[30]
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GDPvsGNI
GDPcanbecontrastedwithgrossnationalproduct(GNP)or,asitisnowknown,grossnationalincome
(GNI).ThedifferenceisthatGDPdefinesitsscopeaccordingtolocation,whileGNIdefinesitsscope
accordingtoownership.Inaglobalcontext,worldGDPandworldGNIare,therefore,equivalentterms.
GDPisproductproducedwithinacountry'sbordersGNIisproductproducedbyenterprisesownedbya
country'scitizens.Thetwowouldbethesameifalloftheproductiveenterprisesinacountrywere
ownedbyitsowncitizens,andthosecitizensdidnotownproductiveenterprisesinanyothercountries.
Inpractice,however,foreignownershipmakesGDPandGNInonidentical.Productionwithina
country'sborders,butbyanenterpriseownedbysomebodyoutsidethecountry,countsaspartofits
GDPbutnotitsGNIontheotherhand,productionbyanenterpriselocatedoutsidethecountry,but
ownedbyoneofitscitizens,countsaspartofitsGNIbutnotitsGDP.
Forexample,theGNIoftheUSAisthevalueofoutputproducedbyAmericanownedfirms,regardless
ofwherethefirmsarelocated.Similarly,ifacountrybecomesincreasinglyindebt,andspendslarge
amountsofincomeservicingthisdebtthiswillbereflectedinadecreasedGNIbutnotadecreasedGDP.
Similarly,ifacountrysellsoffitsresourcestoentitiesoutsidetheircountrythiswillalsobereflected
overtimeindecreasedGNI,butnotdecreasedGDP.ThiswouldmaketheuseofGDPmoreattractive
forpoliticiansincountrieswithincreasingnationaldebtanddecreasingassets.
Grossnationalincome(GNI)equalsGDPplusincomereceiptsfromtherestoftheworldminusincome
paymentstotherestoftheworld.[31]
In1991,theUnitedStatesswitchedfromusingGNPtousingGDPasitsprimarymeasureof
production.[32]TherelationshipbetweenUnitedStatesGDPandGNPisshownintable1.7.5ofthe
NationalIncomeandProductAccounts.[33]

Internationalstandards
TheinternationalstandardformeasuringGDPiscontainedinthebookSystemofNationalAccounts
(1993),whichwaspreparedbyrepresentativesoftheInternationalMonetaryFund,EuropeanUnion,
OrganizationforEconomicCooperationandDevelopment,UnitedNationsandWorldBank.The
publicationisnormallyreferredtoasSNA93todistinguishitfromthepreviouseditionpublishedin
1968(calledSNA68)[34]
SNA93providesasetofrulesandproceduresforthemeasurementofnationalaccounts.Thestandards
aredesignedtobeflexible,toallowfordifferencesinlocalstatisticalneedsandconditions.

Nationalmeasurement
WithineachcountryGDPisnormallymeasuredbyanationalgovernmentstatisticalagency,asprivate
sectororganizationsnormallydonothaveaccesstotheinformationrequired(especiallyinformationon
expenditureandproductionbygovernments).

Interestrates
Netinterestexpenseisatransferpaymentinallsectorsexceptthefinancialsector.Netinterestexpenses
inthefinancialsectorareseenasproductionandvalueaddedandareaddedtoGDP.
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NominalGDPandadjustmentstoGDP
TherawGDPfigureasgivenbytheequationsaboveiscalledthenominal,historical,orcurrent,GDP.
WhenonecomparesGDPfiguresfromoneyeartoanother,itisdesirabletocompensateforchangesin
thevalueofmoneyi.e.,fortheeffectsofinflationordeflation.Tomakeitmoremeaningfulforyear
toyearcomparisons,itmaybemultipliedbytheratiobetweenthevalueofmoneyintheyeartheGDP
wasmeasuredandthevalueofmoneyinabaseyear.
Forexample,supposeacountry'sGDPin1990was$100millionanditsGDPin2000was$300million.
Supposealsothatinflationhadhalvedthevalueofitscurrencyoverthatperiod.Tomeaningfully
compareitsGDPin2000toitsGDPin1990,wecouldmultiplytheGDPin2000byonehalf,tomakeit
relativeto1990asabaseyear.TheresultwouldbethattheGDPin2000equals$300milliononehalf
=$150million,in1990monetaryterms.Wewouldseethatthecountry'sGDPhadrealisticallyincreased
50percentoverthatperiod,not200percent,asitmightappearfromtherawGDPdata.TheGDP
adjustedforchangesinmoneyvalueinthiswayiscalledthereal,orconstant,GDP.
ThefactorusedtoconvertGDPfromcurrenttoconstantvaluesinthiswayiscalledtheGDPdeflator.
Unlikeconsumerpriceindex,whichmeasuresinflationordeflationinthepriceofhouseholdconsumer
goods,theGDPdeflatormeasureschangesinthepricesofalldomesticallyproducedgoodsandservices
inaneconomyincludinginvestmentgoodsandgovernmentservices,aswellashouseholdconsumption
goods.[35]
ConstantGDPfiguresallowustocalculateaGDPgrowthrate,whichindicateshowmuchacountry's
productionhasincreased(ordecreased,ifthegrowthrateisnegative)comparedtothepreviousyear.
RealGDPgrowthrateforyearn=[(RealGDPinyearn)(RealGDPinyearn1)]/(Real
GDPinyearn1)
Anotherthingthatitmaybedesirabletoaccountforispopulationgrowth.Ifacountry'sGDPdoubled
overacertainperiod,butitspopulationtripled,theincreaseinGDPmaynotmeanthatthestandardof
livingincreasedforthecountry'sresidentstheaveragepersoninthecountryisproducinglessthanthey
werebefore.PercapitaGDPisameasuretoaccountforpopulationgrowth.

Crossbordercomparisonandpurchasingpowerparity
ThelevelofGDPindifferentcountriesmaybecomparedbyconvertingtheirvalueinnationalcurrency
accordingtoeitherthecurrentcurrencyexchangerate,orthepurchasingpowerparityexchangerate.
Currentcurrencyexchangerateistheexchangerateintheinternationalforeignexchange
market.
Purchasingpowerparityexchangerateistheexchangeratebasedonthepurchasingpower
parity(PPP)ofacurrencyrelativetoaselectedstandard(usuallytheUnitedStatesdollar).Thisis
acomparative(andtheoretical)exchangerate,theonlywaytodirectlyrealizethisrateistosellan
entireCPIbasketinonecountry,convertthecashatthecurrencymarketrate&thenrebuythat
samebasketofgoodsintheothercountry(withtheconvertedcash).Goingfromcountryto
country,thedistributionofpriceswithinthebasketwillvarytypically,nontradablepurchases
willconsumeagreaterproportionofthebasket'stotalcostinthehigherGDPcountry,perthe
BalassaSamuelsoneffect.
Therankingofcountriesmaydiffersignificantlybasedonwhichmethodisused.
Thecurrentexchangeratemethodconvertsthevalueofgoodsandservicesusingglobalcurrency
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exchangerates.Themethodcanofferbetterindicationsofacountry'sinternationalpurchasing
power.Forinstance,if10%ofGDPisbeingspentonbuyinghitechforeignarms,thenumberof
weaponspurchasedisentirelygovernedbycurrentexchangerates,sincearmsareatraded
productboughtontheinternationalmarket.Thereisnomeaningful'local'pricedistinctfromthe
internationalpriceforhightechnologygoods.ThePPPmethodofGDPconversionismore
relevanttonontradedgoodsandservices.Intheaboveexampleifhitechweaponsaretobe
producedinternallytheiramountwillbegovernedbyGDP(PPP)ratherthannominalGDP.
ThereisaclearpatternofthepurchasingpowerparitymethoddecreasingthedisparityinGDPbetween
highandlowincome(GDP)countries,ascomparedtothecurrentexchangeratemethod.Thisfindingis
calledthePenneffect.
Formoreinformation,seeMeasuresofnationalincomeandoutput.

PerunitGDP
GDPisanaggregatefigurethatdoesnotconsiderdifferingsizesofnations.Therefore,GDPcanbe
statedasGDPpercapita(perperson)inwhichtotalGDPisdividedbytheresidentpopulationona
givendate,GDPpercitizenwheretotalGDPisdividedbythenumbersofcitizensresidinginthe
countryonagivendate,andlesscommonlyGDPperunitofaresourceinput,suchasGDPperGJof
energyorgrossdomesticproductperbarrel.GDPpercitizenintheabovecaseissimilartoGDPper
capitainmostnations.However,innationswithveryhighproportionsoftemporaryforeignworkers
likeinPersianGulfnations,thetwofigurescanbevastlydifferent.
GDPpercapita(currentUSD)
2008 2009 2010

2011

2012

UnitedStatesofAmerica 46,760 45,305 46,612 48,112 49,641

UnitedKingdom

43,147 35,331 36,238 38,974 39,090

Source:HelgiLibrary,[36]WorldBank

StandardoflivingandGDP:Wealthdistributionand
externalities
GDPpercapitaisoftenusedasanindicatoroflivingstandards.[37]Notablyontherationalethatall
citizenswouldbenefitfromtheircountry'sincreasedeconomicproductionasitleadstoanincreasein
consumptionopportunitieswhichinturnincreasesthestandardofliving.[38]Similarly,GDPpercapitais
notameasureofpersonalincome.InfactGDPmayincreasewhilerealincomesforthemajoritydecline.
ThemajoradvantageofGDPpercapitaasanindicatorofstandardoflivingisthatitismeasured
frequently,widely,andconsistently.Itismeasuredfrequentlyinthatmostcountriesprovideinformation
onGDPonaquarterlybasis,allowingtrendstobeseenquickly.Itismeasuredwidelyinthatsome
measureofGDPisavailableforalmosteverycountryintheworld,allowingintercountrycomparisons.
ItismeasuredconsistentlyinthatthetechnicaldefinitionofGDPisrelativelyconsistentamong
countries.
GDPisaneutralmeasurewhichmerelyshowsaneconomy'sgeneralabilitytopayforexternalitiessuch
associalandenvironmentalconcerns.[39]Inessenceitisintendedtobeameasureoftotalnational
economicactivityaseparateconcept.AsaconsequenceGDPnotdoesincludeseveralfactorsthat
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influencethestandardofliving.Inparticular,itfailstoaccountfor:
AssetvalueGDPdoesnottakeintoaccountthevalueofallassetsinaneconomy.Thisisakinto
ignoringacompany'sbalancesheet,andjudgingitsolelyonthebasisofitsincomestatement.
CrossbordercomparisonsofGDPcanbeinaccurateastheydonottakeintoaccountlocal
differencesinthequalityofgoods,evenwhenadjustedforpurchasingpowerparity.Thistypeof
adjustmenttoanexchangerateiscontroversialbecauseofthedifficultiesoffindingcomparable
basketsofgoodstocomparepurchasingpoweracrosscountries.Forinstance,peopleincountryA
mayconsumethesamenumberoflocallyproducedapplesasincountryB,butapplesincountry
Aareofamoretastyvariety.ThisdifferenceinmaterialwellbeingwillnotshowupinGDP
statistics.Thisisespeciallytrueforgoodsthatarenottradedglobally,suchashouses.
ExternalitiesEconomicgrowthusuallyentailsanincreaseinnegativeexternalitiesthatcannot
directlybemeasuredbyGDP[38][40]
NominalGDPdoesnotmeasurevariationsinpurchasingpowerorcostsoflivingbyarea,sowhen
theGDPfigureisdeflatedovertime,GDPgrowthcanvarygreatlydependingonthebasketof
goodsusedandtherelativeproportionsusedtodeflatetheGDPfigure.
NonmarkettransactionsGDPexcludesactivitiesthatarenotprovidedthroughthemarket,such
ashouseholdproductionandvolunteerorunpaidservices.Asaresult,GDPisunderstated.The
workofNewZealandeconomistMarilynWaringhashighlightedthatifaconcertedattemptto
factorinunpaidworkweremade,thenitwouldinpartundotheinjusticesofunpaid(andinsome
cases,slave)labour,andalsoprovidethepoliticaltransparencyandaccountabilitynecessaryfor
democracy.
NonmonetaryeconomyGDPomitseconomieswherenomoneycomesintoplayatall,
resultingininaccurateorabnormallylowGDPfigures.Forexample,incountrieswithmajor
businesstransactionsoccurringinformally,portionsoflocaleconomyarenoteasilyregistered.
Barteringmaybemoreprominentthantheuseofmoney,evenextendingtoservices.[40]
Qualityimprovementsandinclusionofnewproductsbynotadjustingforquality
improvementsandnewproducts,GDPunderstatestrueeconomicgrowth.Forinstance,although
computerstodayarelessexpensiveandmorepowerfulthancomputersfromthepast,GDPtreats
themasthesameproductsbyonlyaccountingforthemonetaryvalue.Theintroductionofnew
productsisalsodifficulttomeasureaccuratelyandisnotreflectedinGDPdespitethefactthatit
mayincreasethestandardofliving.Forexample,eventherichestpersonin1900couldnot
purchasestandardproducts,suchasantibioticsandcellphones,thatanaverageconsumercanbuy
today,sincesuchmodernconveniencesdidnotexistthen.
SustainabilityofgrowthGDPisameasurementofeconomichistoricactivityandisnot
necessarilyaprojection.AcountrymayachieveatemporarilyhighGDPfromuseofnatural
resourcesorbymisallocatinginvestment.
UndergroundeconomyofficialGDPestimatesmaynottakeintoaccounttheunderground
economy,inwhichtransactionscontributingtoproduction,suchasillegaltradeandtaxavoiding
activities,areunreported,causingGDPtobeunderestimated.[40]
WealthdistributionGDPdoesnotaccountforvariancesinincomesofvariousdemographic
groups.Seeincomeinequalitymetricsfordiscussionofavarietyofinequalitybasedeconomic
measures.[40]
GDPalsoignoressubsistenceproduction.
WhatisbeingproducedGDPcountsworkthatproducesnonetchangeorthatresultsfrom
repairingharm.Forexample,rebuildingafteranaturaldisasterorwarmayproduceaconsiderable
amountofeconomicactivityandthusboostGDP.Theeconomicvalueofhealthcareisanother
classicexampleitmayraiseGDPifmanypeoplearesickandtheyarereceivingexpensive
treatment,butitisnotadesirablesituation.Alternativeeconomicestimates,suchasthestandard
oflivingordiscretionaryincomepercapitatrytomeasurethehumanutilityofeconomicactivity.
Seeuneconomicgrowth.[40]

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ItcanbearguedthatGDPpercapitaasanindicatorstandardoflivingcanbeproventhroughthese
factors:[37][41]
Moregoodsandservicesareavailabletoconsumers
Consumersareinabetterpositiontobuygoods
Productivitycorrelateswithstandardofliving,andGDPpercapitatakesthisintoaccount
PeoplewholiveincountrieswithhigherrealGDPpercapitatendtobemoreeducatedandlive
longer
Goodsandservicesareakeyelementofeconomicwellbeing
GDPpercapitaasastandardoflivingisacontinuedusagebecausemostpeoplehaveafairlyaccurate
ideaofwhatitisandknowitistoughtocomeupwithquantitativemeasuresforsuchconstructsas
happiness,qualityoflife,andwellbeing.[37]
Inconclusion,theargumentforusingGDPasastandardoflivingproxyisnotthatitisagoodindicator
oftheabsolutelevelofstandardofliving,butthatlivingstandardstendtocorrelatewithpercapitaGDP,
sothatchangesinlivingstandardsarereadilydetectedthroughchangesinGDP.

Limitationsandcriticisms
SimonKuznets,theeconomistwhodevelopedthefirstcomprehensivesetofmeasuresofnational
income,statedinhisfirstreporttotheUSCongressin1934,inasectiontitled"UsesandAbusesof
NationalIncomeMeasurements":[14]
Thevaluablecapacityofthehumanmindtosimplifyacomplexsituationinacompact
characterizationbecomesdangerouswhennotcontrolledintermsofdefinitelystated
criteria.Withquantitativemeasurementsespecially,thedefinitenessoftheresultsuggests,
oftenmisleadingly,aprecisionandsimplicityintheoutlinesoftheobjectmeasured.
Measurementsofnationalincomearesubjecttothistypeofillusionandresultingabuse,
especiallysincetheydealwithmattersthatarethecenterofconflictofopposingsocial
groupswheretheeffectivenessofanargumentisoftencontingentuponoversimplification.
[...]

Allthesequalificationsuponestimatesofnationalincomeasanindexofproductivityare
justasimportantwhenincomemeasurementsareinterpretedfromthepointofviewof
economicwelfare.Butinthelattercaseadditionaldifficultieswillbesuggestedtoanyone
whowantstopenetratebelowthesurfaceoftotalfiguresandmarketvalues.Economic
welfarecannotbeadequatelymeasuredunlessthepersonaldistributionofincomeisknown.
Andnoincomemeasurementundertakestoestimatethereversesideofincome,thatis,the
intensityandunpleasantnessofeffortgoingintotheearningofincome.Thewelfareofa
nationcan,therefore,scarcelybeinferredfromameasurementofnationalincomeas
definedabove.
In1962,Kuznetsstated:[42]

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Distinctionsmustbekeptinmindbetweenquantityandqualityofgrowth,betweencosts
andreturns,andbetweentheshortandlongrun.Goalsformoregrowthshouldspecifymore
growthofwhatandforwhat.
AustrianSchooleconomistFrankShostakhasarguedthatGDPisanemptyabstractiondevoidofany
linktotherealworld,and,therefore,haslittleornovalueineconomicanalysis.SaysShostak:[43]
TheGDPframeworkcannottelluswhetherfinalgoodsandservicesthatwereproduced
duringaparticularperiodoftimeareareflectionofrealwealthexpansion,orareflectionof
capitalconsumption.Forinstance,ifagovernmentembarksonthebuildingofapyramid,
whichaddsabsolutelynothingtothewellbeingofindividuals,theGDPframeworkwill
regardthisaseconomicgrowth.Inreality,however,thebuildingofthepyramidwilldivert
realfundingfromwealthgeneratingactivities,therebystiflingtheproductionofwealth.

Sowhatarewetomakeoutoftheperiodicalpronouncementsthattheeconomy,asdepicted
byrealGDP,grewbyaparticularpercentage?Allwecansayisthatthispercentagehas
nothingtodowithrealeconomicgrowthandthatitmostlikelymirrorsthepaceof
monetarypumping.WecanthusconcludethattheGDPframeworkisanemptyabstraction
devoidofanylinktotherealworld.
TheUK'sNaturalCapitalCommitteehighlightedtheshortcomingsofGDPinitsadvicetotheUK
Governmentin2013,pointingoutthatGDP"focussesonflows,notstocks.Asaresultaneconomycan
rundownitsassetsyet,atthesametime,recordhighlevelsofGDPgrowth,untilapointisreached
wherethedepletedassetsactasacheckonfuturegrowth".Theythenwentontosaythat"itisapparent
thattherecordedGDPgrowthrateoverstatesthesustainablegrowthrate.Broadermeasuresofwellbeing
andwealthareneededforthisandthereisadangerthatshorttermdecisionsbasedsolelyonwhatis
currentlymeasuredbynationalaccountsmayprovetobecostlyinthelongterm".
ManyenvironmentalistsarguethatGDPisapoormeasureofsocialprogressbecauseitdoesnottake
intoaccountharmtotheenvironment.[44][45]
In1989HermanDalyandJohnB.CobbdevelopedtheIndexofSustainableEconomicWelfare(ISEW),
whichtheyproposedasamorevalidmeasureofsocioeconomicprogress,bytakingintoaccount
variousotherfactorssuchasconsumptionofnonrenewableresourcesanddegradationofthe
environment.

ListsofcountriesbytheirGDP
ListsofcountriesbyGDP
ListofcountriesbyGDP(nominal),(percapita)
ListofcontinentsbyGDP(nominal)
ListofcountriesbyGDP(PPP),(percapita),(perhour)
ListofcountriesbyGDP(real)growthrate,(percapita)
ListofcountriesbyGDPsectorcomposition
ListofcountriesbyfutureGDPestimates(PPP),(percapita),(nominal)

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Listofotherapproachestothemeasurementof(economic)
progress
CompositeWealthIndicatorsNamelyyearlymaterialwealth(anamendedversionofGNIto
includedepletionofnaturalresourcesandthecostsofpollution),biologicalwealth(measured
throughlifeexpectancy)andthusexpectedmaterialwealth(orphysicalwealth),alinear
combinationofbiologicalandyearlymaterialwealth(theamountofmaterialwealthexpectedto
beproducedbyanindividualduringhis/herlifetime).[46]
EuropeanQualityofLifeSurveyThesurvey,firstpublishedin2005,assessedqualityoflife
acrossEuropeancountriesthroughaseriesofquestionsonoverallsubjectivelifesatisfaction,
satisfactionwithdifferentaspectsoflife,andsetsofquestionsusedtocalculatedeficitsoftime,
loving,beingandhaving.[47]
FutureOrientationIndexTobiasPreisetal.usedGoogleTrendsdatatodemonstratethatInternet
usersfromcountrieswithahigherpercapitagrossdomesticproduct(GDP)aremorelikelyto
searchforinformationaboutthefuturethaninformationaboutthepast.Thefindings,publishedin
thejournalScientificReports,suggesttheremaybealinkbetweenonlinebehaviourandreal
worldeconomicindicators.[48][49][50]TheauthorsofthestudyexaminedGooglesearchqueries
madebyInternetusersin45differentcountriesin2010andcalculatedtheratioofthevolumeof
searchesforthecomingyear('2011')tothevolumeofsearchesforthepreviousyear('2009'),
whichtheycallthe'futureorientationindex'.[51]Theycomparedthefutureorientationindextothe
percapitaGDPofeachcountryandfoundastrongtendencyforcountriesinwhichGoogleusers
enquiremoreaboutthefuturetoexhibitahigherGDP.Theresultshintthattheremaypotentially
bearelationshipbetweentheeconomicsuccessofacountryandtheinformationseeking
behaviourofitscitizensonline.
Genuineprogressindicator(GPI)orIndexofSustainableEconomicWelfare(ISEW)TheGPI
andtheISEWattempttoaddressmanyoftheabovecriticismsbytakingthesamerawinformation
suppliedforGDPandthenadjustforincomedistribution,addforthevalueofhouseholdand
volunteerwork,andsubtractforcrimeandpollution.
GrossnationalhappinessTheCentreforBhutaneseStudiesinBhutanisworkingonacomplex
setofsubjectiveandobjectiveindicatorstomeasure'nationalhappiness'invariousdomains
(livingstandards,health,education,ecosystemdiversityandresilience,culturalvitalityand
diversity,timeuseandbalance,goodgovernance,communityvitalityandpsychologicalwell
being).Thissetofindicatorswouldbeusedtoassessprogresstowardsgrossnationalhappiness,
whichtheyhavealreadyidentifiedasbeingthenation'spriority,aboveGDP.
HappyPlanetIndexThehappyplanetindex(HPI)isanindexofhumanwellbeingand
environmentalimpact,introducedbytheNewEconomicsFoundation(NEF)in2006.Itmeasures
theenvironmentalefficiencywithwhichhumanwellbeingisachievedwithinagivencountryor
group.Humanwellbeingisdefinedintermsofsubjectivelifesatisfactionandlifeexpectancy
whileenvironmentalimpactisdefinedbytheEcologicalFootprint.
Humandevelopmentindex(HDI)upuntil2009reportHDIusedGDPasapartofitscalculation
andthenfactorsinindicatorsoflifeexpectancyandeducationlevels.In2010theGDPcomponent
hasbeenreplacedwithGNI.
OECDBetterLifeIndexThebetterlivescompendiumofindicatorsproducedin2011reflects
some10yearsbytheorganisationtodevelopawiderofsetofindicatorsmorecloselyattunedto
themeasurementofwellbeingorwelfareoutcomes.Thereisfelttobeconsiderableconvergence
(in2011)inhighincomecountriesaboutthekindsofdimensionsthatshouldbeincludedinsuch
multidimensionalapproachestowelfaremeasurementseeforinstancethecapabilities
measurementresearchprojectcapabilitiesapproach.
SocialProgressIndexmeasurestheextenttowhichcountriesprovideforthesocialand
environmentalneedsoftheircitizens.Fiftytwoindicatorsintheareasofbasichumanneeds,
foundationsofwellbeing,andopportunityshowtherelativeperformanceofnations.Theindex
usesoutcomemeasureswhenthereissufficientdataavailableortheclosestpossibleproxies.
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WorldGovernanceIndexBasingtheirworkontheUnitedNationsMillenniumDeclaration,
whichwasthesubjectofunprecedentedU.N.consensusamongtheheadsofstateandgovernment
whoadopteditin2000,ateamofresearchersoftheForumforanewWorldGovernance(FnWG)
(http://www.worldgovernance.net)focuseditsresearchonthefivemainconceptsdefiningthe
applicationframeworkofworldgovernanceandconstitutingkeygoalstobereachedby2015:
PeaceandSecurityDemocracyandRuleofLawHumanRightsandParticipationSustainable
DevelopmentandHumanDevelopment

Seealso
AnnualaverageGDPgrowth
Chainedvolumeseries
Circularflowofincome
GDPdensity
Grossoutput
Grossregionaldomesticproduct
Grossstateproduct
Grossvalueadded
Grossworldproduct
Intermediateconsumption
Inventoryinvestment
Listofcountriesbyaveragewage
Listofcountriesbyhouseholdincome
ListofcountriesbyGDP(nominal)

ListofcountriesbyGDP(nominal)
ListofcountriesbyGDP(nominal)per
capita
ListofcountriesbyGDP(PPP)
ListofcountriesbyGDP(PPP)percapita
ListofeconomicreportsbyU.S.
governmentagencies
Miseryindex(economics)
Nationalaveragesalary
Potentialoutput
Production(economics)
Realgrossdomesticproduct

Notesandreferences
1."GDP(OfficialExchangeRate)"(PDF).WorldBank.RetrievedAugust24,2015.
2.Analysis,USDepartmentofCommerce,BEA,BureauofEconomic."BureauofEconomicAnalysis".
www.bea.gov.Retrieved20151125.
3.Skousen,Mark(2015).TheStructureofProduction.NewYorkUniversityPress.ISBN9781479848522.
4.Jorgenson,DaleW.Landefeld,J.StevenNordhaus,Williamed.(2006).ANewArchitecturefortheU.S.
NationalAccounts.ChicagoUniversityPress.p.5.ISBN9780226410845.
5.EconomicPowerinaChangingInternationalSystemPage25,EwanW.Anderson,IvarsGutmanis,LiamD.
Anderson2000
6.OECDReviewsofRegulatoryReform,2004,p92
7.http://www.economist.com/news/leaders/21600685nigeriassuddenlysupersizedeconomyindeedwonderso
areitsstillhuge
8.ChinaandtheWorldEconomy,YihchyiChuang,SimonaThomas2010
9.FieldlistingGDP(PPPexchangerate)(https://www.cia.gov/library/publications/theworld
factbook/rankorder/2001rank.html),CIAWorldFactbook
10."OECD".Retrieved14August2014.
11.Dawson,Graham(2006).EconomicsandEconomicChenge.FT/PrenticeHall.p.205.
ISBN9780273693512.
12."Pettyimpressive".TheEconomist.RetrievedAugust1,2015.
13.Coyle,Diane."WarfareandtheInventionofGDP".TheGlobalist.RetrievedAugust1,2015.
14.CongresscommissionedKuznetstocreateasystemthatwouldmeasurethenation'sproductivityinorderto
betterunderstandhowtotackletheGreatDepression.SimonKuznets,1934."NationalIncome,19291932".
73rdUSCongress,2dsession,Senatedocumentno.124,page57SimonKuznets,1934."NationalIncome,
19291932".73rdUSCongress,2dsession,Senatedocumentno.124,page57SimonKuznets,1934.
"NationalIncome,19291932".73rdUSCongress,2dsession,Senatedocumentno.124,page57.
https://fraser.stlouisfed.org/scribd/?
title_id=971&filepath=/docs/publications/natincome_1934/19340104_nationalinc.pdf
15.Dickinson,Elizabeth."GDP:abriefhistory".ForeignPolicy.com.Retrieved25April2012.
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16.Coyle,Diane(2014).GDP:ABriefbutAffectionateHistory.PrincetonUniversityPress.p.6.
ISBN9780691156798.
17.WorldBank,StatisticalManual>>NationalAccounts>>GDPfinaloutput
(http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/EXTDECSTAMAN/0,,contentMDK:2
0882526~menuPK:2648252~pagePK:64168445~piPK:64168309~theSitePK:2077967~isCURL:Y,00.html),
retrievedOctober2009.
"User'sguide:BackgroundinformationonGDPandGDPdeflator".HMTreasury.
"MeasuringtheEconomy:APrimeronGDPandtheNationalIncomeandProductAccounts"(PDF).Bureau
ofEconomicAnalysis.
18.BasedontheIMFdata.IfnodatawasavailableforacountryfromIMF,IusedWorldBankdata.
19.UnitedStatesBureauofEconomicAnalysis,AguidetotheNationalIncomeandProductAccountsofthe
UnitedStates(http://www.bea.gov/national/pdf/nipaguid.pdf)PDF,page5retrievedNovember2009.Another
term,"businesscurrenttransferpayments",maybeadded.Also,thedocumentindicatesthatthecapital
consumptionadjustment(CCAdj)andtheinventoryvaluationadjustment(IVA)areappliedtotheproprietor's
incomeandcorporateprofitstermsandCCAdjisappliedtorentalincome.
20.ThayerWatkins,SanJosStateUniversityDepartmentofEconomics,"GrossDomesticProductfromthe
TransactionsTableforanEconomy"(http://www.sjsu.edu/faculty/watkins/gdp.htm),commentarytofirst
table,"TransactionsTableforanEconomy".(PageretrievedNovember2009.)
21.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,chap.2.
22.BEA,ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,p12.
23.AustralianNationalAccounts:Concepts,SourcesandMethods,2000,sections3.5and4.15.
24.ThisandthefollowingstatementonentitlementtocompensationarefromAustralianNationalAccounts:
Concepts,SourcesandMethods,2000,section4.6.
25.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,page22.
26.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,page22.
27.AustralianNationalAccounts:Concepts,SourcesandMethods,2000,section4.4.
28.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,page22andAustralian
NationalAccounts:Concepts,SourcesandMethods,2000,section4.4.
29.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,page24.
30.ConceptsandMethodsoftheUnitedStatesNationalIncomeandProductAccounts,page25.
31.Lequiller,FranoisDerekBlades(2006).UnderstandingNationalAccounts.OECD.p.18.ISBN9789264
025660."ToconvertGDPintoGNI,itisnecessarytoaddtheincomereceivedbyresidentunitsfromabroad
anddeducttheincomecreatedbyproductioninthecountrybuttransferredtounitsresidingabroad."
32.UnitedStates,BureauofEconomicAnalysis,Glossary,"GDP"(http://www.bea.gov/glossary/glossary.cfm).
RetrievedNovember2009.
33."U.S.DepartmentofCommerce.BureauofEconomicAnalysis".Bea.gov.20091021.Retrieved
20100731.
34."NationalAccounts".CentralBureauofStatistics.Retrieved20110629.
35.HMTreasury,BackgroundinformationonGDPandGDPdeflator
Someofthecomplicationsinvolvedincomparingnationalaccountsfromdifferentyearsareexplainedinthis
WorldBankdocument
(http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/EXTDECSTAMAN/0,,contentMDK:2
0908551~menuPK:2648276~pagePK:64168445~piPK:64168309~theSitePK:2077967~isCURL:Y,00.html).
36.|http://helgilibrary.com/indicators/index/gdppercapitacurrentusdGDPPerCapita(CurrentUSD)|2014
0210
37."HowDoWeMeasureStandardofLiving?"(PDF).TheFederalReserveBankofBoston.
38.Mankiw,N.G.Taylor,M.P.(2011).Economics(2nded.,reviseded.).Andover:CengageLearning.
39."EricZenceyG.D.P.R.I.P.".Nytimes.com.August2009.Retrieved20110131.
40."MacroeconomicsGDPandWelfare".Retrieved20150221.
41."HowRealGDPperCapitaAffectstheStandardofLiving".Study.com.
42.SimonKuznets."HowToJudgeQuality".TheNewRepublic,October20,1962
43.FrankShostak."WhatisupwiththeGDP?".
44.TheVirtuesofIgnoringGDPhttp://www.thebrokeronline.eu/Articles/ThevirtuesofignoringGDP
45.TheRiseandFallofG.D.P.http://www.nytimes.com/2010/05/16/magazine/16GDPt.html?pagewanted=all
46.SeeEmanueleFelice,Neitherdashboardnor'mashup'indices:anempiricalwealthapproachasapathwaytoa
comprehensivemeasureofdevelopment,http://www.heconomica.uab.es/wps/2012_01.pdf
47."FirstEuropeanQualityofLifeSurvey".
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48.TobiasPreis,HelenSusannahMoat,H.EugeneStanleyandStevenR.Bishop(2012)."Quantifyingthe
AdvantageofLookingForward".ScientificReports2:350.doi:10.1038/srep00350.PMC3320057.
PMID22482034.
49.PaulMarks(April5,2012)."Onlinesearchesforfuturelinkedtoeconomicsuccess".NewScientist.
RetrievedApril9,2012.
50.CaseyJohnston(April6,2012)."GoogleTrendsrevealscluesaboutthementalityofrichernations".Ars
Technica.RetrievedApril9,2012.
51.TobiasPreis(20120524)."SupplementaryInformation:TheFutureOrientationIndexisavailablefor
download"(PDF).Retrieved20120524.

Furtherreading
Coyle,Diane(2014).GDP:ABriefbutAffectionateHistory.Princeton,NJ:PrincetonUniversityPress.
ISBN9780691156798.
AustralianBureauforStatistics,AustralianNationalAccounts:Concepts,SourcesandMethods
(http://www.abs.gov.au/Ausstats/abs@.nsf/Latestproducts/3F880EE1D366198CCA2569A400061616?
opendocument),2000.RetrievedNovember2009.IndepthexplanationsofhowGDPandothernational
accountsitemsaredetermined.
UnitedStatesDepartmentofCommerce,BureauofEconomicAnalysis,ConceptsandMethodsoftheUnited
StatesNationalIncomeandProductAccounts(http://www.bea.gov/national/pdf/NIPAhandbookch1
4.pdf)PDF.RetrievedNovember2009.IndepthexplanationsofhowGDPandothernationalaccountsitems
aredetermined.

Externallinks
Global
AustralianBureauofStatisticsManualonGDP
measurement

WikimediaCommonshas
mediarelatedtoGross
domesticproduct.
Wikiquotehasquotations
relatedto:GrossDomestic
Product

(http://www.abs.gov.au/Ausstats/abs@.nsf/66f306f503e529a5ca25697e0017661f/3f880ee1d36619
8cca2569a400061616!OpenDocument)
GDPindexedbonds(http://perso.wanadoo.fr/pgreenfinch/eoblpib.htm)
OECDGDPchart(http://data.oecd.org/gdp/grossdomesticproductgdp.htm)
UNStatisticalDatabases(http://unstats.un.org/unsd/databases.htm)
WorldDevelopmentIndicators(WDI)(http://databank.worldbank.org/data/home.aspx)at
Worldbank.org
WorldGDPChart(since1960)(http://www.google.com/publicdata/explore?ds=wb
wdi&met=ny_gdp_mktp_cd&idim=country:USA:CHN:FRA:DEU:JPN:GBR)

Data
BureauofEconomicAnalysis:OfficialUnitedStatesGDPdata
(http://www.bea.gov/national/index.htm#gdp)
Historicalstatistics.org:LinkstohistoricalstatisticsonGDPfordifferentcountriesandregions
(http://www.historicalstatistics.org/),maintainedbytheDepartmentofEconomicHistoryat
StockholmUniversity.
QuandlGDPbycountry(https://www.quandl.com/c/economics/gdpbycountry)downloadable
inCSV,Excel,JSONorXML
HistoricalUSGDP(yearlydata)(http://www.measuringworth.org/usgdp/),1790present,
https://en.wikipedia.org/wiki/Gross_domestic_product

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GrossdomesticproductWikipedia,thefreeencyclopedia

maintainedbySamuelH.WilliamsonandLawrenceH.Officer,bothprofessorsofeconomicsat
theUniversityofIllinoisatChicago.
HistoricalUSGDP(quarterlydata)(http://financedata.com/series/GDP),1947present
Googlepublicdata(http://www.google.com/publicdata/explore?
ds=a7jenngfc4um7_&ctype=l&strail=false&nselm=h&met_y=gross_domestic_product&hl=en&d
l=en):GDPandPersonalIncomeoftheU.S.(annual):NominalGrossDomesticProduct
TheMaddisonProject(http://www.ggdc.net/maddison/maddisonproject/home.htm)ofthe
GroningenGrowthandDevelopmentCentreattheUniversityofGroningen,theNetherlands.This
projectcontinuesandextendstheworkofAngusMaddisonincollatingalltheavailable,credible
dataestimatingGDPfordifferentcountriesaroundtheworld.Thisincludesdataforsome
countriesforover2,000yearsbackto1CEandforessentiallyallcountriessince1950.

Articlesandbooks
GrossDomesticProduct:AnEconomysAll
(http://www.imf.org/external/pubs/ft/fandd/basics/gdp.htm),InternationalMonetaryFund.
StiglitzJE,SenA,FitoussiJP.MismeasuringourLives:WhyGDPDoesn'tAddUp,NewPress,
NewYork,2010(http://www.wcfia.harvard.edu/node/6224)
What'swrongwiththeGDP?(http://dieoff.org/page11.htm)
LimitationsofGDPStatistics(http://ingrimayne.saintjoe.edu/econ/Measuring/GNP2.html)by
RobertSchenk.
WhetheroutputandCPIinflationaremismeasured
(http://pages.stern.nyu.edu/~nroubini/MEASURE.HTM),byNourielRoubiniandDavidBackus,
inLecturesinMacroeconomics
RodneyEdvinsson,Growth,Accumulation,Crisis:WithNewMacroeconomicDataforSweden
18002000(http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva378)PDF
CliffordCobb,TedHalsteadandJonathanRowe."IftheGDPisup,whyisAmericadown?"The
AtlanticMonthly,vol.276,no.4,October1995,pages5978
(http://www.theatlantic.com/past/politics/ecbig/gdp.htm)
JerornC.J.M.vandenBergh,"AbolishingGDP(http://papers.ssrn.com/sol3/papers.cfm?
abstract_id=962343)"
GDPandGNIinOECDObserverNo246247,Dec2004Jan2005
(http://www.oecdobserver.org/news/fullstory.php/aid/1507/GDP_and_GNI.html)
Progress,whatprogress?inOECDObserverNo272March2009
(http://www.oecdobserver.org/news/fullstory.php/aid/2793/Progress,_what_progress_.html)
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