Gross domestic product (GDP, GNP) is understood to mean the market value of all those goods and services that were produced during the study period in the territory of a country for the purpose of consumption, accumulation and export, regardless of who owns the factors of production used. Often, when they mention GDP, they mean economic activity in the country, since this indicator makes it possible to assess the scale of economic development and its condition. Nominal GDP is measured in the currency of the country for which it is calculated, however, if information on this indicator is provided by the IMF, the World Bank or some other supranational organization, then it is expressed in US dollars.
GDP is a key indicator by which economies of different countries are compared. It has a strong influence on currency quotes, stock indicators, monetary policy pursued by the central bank and the government.
There are two types of this indicator: nominal GDP and real GDP. The first of them is sometimes also called absolute. The difference between these two indicators is expressed in the fact that nominal GDP is an indicator that is determined at current prices, and real GDP is at base year prices, that is, taking inflation into account for this calculation period. Both the first and second indicators are important. First, based on statistical data, the nominal GDP is determined. You can use one of three methods for this:
- Production method (by gross value added).
- GDP by expenditure.
- GDP by income.
When using the production method , the total gross value added produced by each enterprise, firm and any other economic unit in the territory of a particular country is summarized. In this case, intermediate consumption (raw materials, semi-finished products, etc.) is excluded from the calculation and, therefore, there is no double counting and distortion of the result.
Determining GDP using expenditures also does not cause any difficulties. In this method, certain types of expenses are simply summed up: net exports, consumer spending of the country's inhabitants, government spending and gross investment.
For income, this indicator is determined in a similar way. Only in this case certain incomes of each of the economic entities of the country are included in the composition. These are wages of wage workers, gross income and gross profit, net taxes on imports and production.
Simon Kuznets became the first person to decide to assess the size of the national product. This American economist decided in the 30s of the XX century to figure out what was happening with his country's economy. At that time, America was facing massive problems caused by the Great Depression. The period from 1929 to 1935 was chosen as the calculation period. Nowadays, this indicator is calculated and published much faster. In developed countries, the preliminary value of GDP appears in the media before the billing quarter ends. In the US, the first data is released a week before the end of the quarter.
According to the IMF, in 2011, the United States is deservedly the world leader in terms of BBB. The national product of this country is approximately $ 15 trillion. Following is China with a more modest figure of 11.316 trillion dollars. And the third place is taken by India - 4.47 trillion dollars. For comparison, we take the forecast value of Russia's GDP. According to the Government of the Russian Federation, in 2013 GDP will amount to 66.515 trillion rubles. If you calculate at the rate of 31 rubles per dollar, then this will be about 2.146 trillion dollars. In neighboring Ukraine, the projected GDP for 2013, laid down in the country's draft budget, is equal to UAH 1576 billion. At the official exchange rate on December 5, 2012, UAH 7.99 per dollar, this figure is approximately 0.197 trillion dollars.