Subject Economics for managers Topic Gross Domestic Product Rajput Kavita D.

Gross domestic product

The gross domestic product (GDP) or gross domestic income (GDI) is the amount of goods and services produced in a year, in a country. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living, alternative measures to GDP for that purpose.

Determining GDP
GDP can be determined in three ways, all of which should in principle give the same result. They are the product (or output) approach, the income approach, and the expenditure approach. Example: the expenditure method: GDP = private consumption + gross investment + government spending + (exports imports), Or

Components of GDP by expenditure

GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M). Y = C + I + G + (X M)

Top 10 country GDP

GDP is the indicator of a country's economical status.
Rank 1 2 3 4 5 6 7 8 9 10 Country United States China Japan India Germany United Kingdom France Russia Italy Brazil GDP (purchasing power parity) (Billion $) 13,820 6,473 4,262 2,816 2,816 2,154 2,074 1,985 1,814 1,794

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Series1

x aix- country y aix- GDP

Interpretation
In the graph United States GDP rate is very high 13,820$ as compare any other country GDP rate and brazil GDP rate is very law 1,794$ as compare any other country GDP rate, So the GDP rate is correlate with standard of living.

GDP-real growth rate

This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.

Rank 1 2 3 4 5 6 7 8 9 10

Country Bhutan Macau Qatar Angola East Timor Ethiopia Rwanda Azerbaijan Equatorial Guinea Turkmenistan

GDP - real growth rate (%) 21.4 15 13.4 13.2 12.8 11.6 11.2 10.8 10.6 10.5

Kyrgyzstan 3%

Ukraine 3% Iran Burma Kenya 3% 3% 3% Mongolia

Chart Title

Venezuela 3% 4% Seychelles 5% Ethiopia 5%

Zimbabwe 68%

Interpretation
In the graph Bhutan GDP real growth rate is very high 21.4%as compare any other country GDP - real growth rate and Turkmenistan GDP - growth rate is very law 10.5% as

compare any other country GDP growth rate, So the GDP - growth rate is correlate with standard of living.

GDP - per capita (PPP)

This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.

Rank 1 2 3 4 5 6 7 8 9 10

Country Liechtenstein Qatar Luxembourg Bermuda Jersey Norway Brunei Kuwait Singapore United States

GDP - per capita (PPP) (US$) 118,000 85,600 79,600 69,900 57,000 54,900 54,400 54,300 48,500 46,300

600 500 400 300 200 100 0 Series1

x aix- country y aix- GDP-per capital $

Interpretation
In the graph Liechtenstein GDP- per capital rate is very high 118,000$ as compare any other country GDP- per capital rate and United states GDP- per capital rate is very law 46,300$

as compare any other country GDP- per capital rate, So the GDP- per capital rate is correlate with standard of living.

Inflation rate (consumer prices)

This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices. Rank 1 2 3 4 5 6 7 8 9 10 Country Zimbabwe Ethiopia Seychelles Venezuela Mongolia Burma Kenya Iran Ukraine Kyrgyzstan Inflation rate (consumer prices) (%) 563 44.4 37 30.4 28 26.8 26.3 25.6 25.2 24.5

Chart Title
Zimbabwe Burma Ethiopia Kenya Seychelles Iran Venezuela Ukraine Mongolia Kyrgyzstan

3% 3% 3% 3% 3% 4% 3% 5% 5% 68%

Interpretation
In the graph Zimbabwe Inflation rate is very high 68% as compare any other country Inflation rate and Kyrgyzstan Inflation rate is very law 3% as compare any other country Inflation rate, So the Inflation rate is correlate with standard of living.