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en:gdp [2017/11/03 15:12]
federico
en:gdp [2018/08/10 10:38]
federico
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-====== GDP ======+====== ​Meaning of GDP ======
  
 +The GPD (Gross Domestic Product) is perhaps the most used measurement of the size of a country'​s economy. **Definition**:​ // GPD is the monetary value of all the goods and services produced within the borders of a country during a specific time period.//
  
-GDP means Gross Domestic Product.+===== Breaking Down the GPD =====
  
-//GDP is a measure of the value of all the goods and services that a country produces.//+ 
 +**Product** means the value of final goods and services. It can also be seen as the added value by each production stage or the sum of the rents to the production factors. 
 + 
 +**Domestic** means that only the production inside the borders of a country ​is taken into account. If an american person ​produces ​inside Germany, that production is taken into account in the GDP of Germany. 
 +** 
 +Gross** means that capital depreciation is not taken into account. A small portion of the GDP is to replace obsolete capital. This production is considered when calculating the GDP. 
 + 
 +Another measures of the production of a country are the national product, that consideres the nationality of the factor of production and not it's location, and the net product, that doesn'​t include the production to replace obsolete capital.  
 + 
 +===== GDP Growth Rate ===== 
 + 
 +The GDP Growth Rate is the percentage increase in GDP from period to period. The period can be a quarter, a month, a year, etc
  
 **When GDP grows**, it is considered that the economy is working properly. Employment grows and there are more goods and services available. ​ **When GDP grows**, it is considered that the economy is working properly. Employment grows and there are more goods and services available. ​
 +
 +===== GDP per Capita =====
 +
 +The GPD can tell us a lot about the size of an economy as a whole. But countries with a lot of population, like China, will naturally have a larger GPD when compared with smaller countries, but with a higher output per person.
 +
 +In order to compare the output per capita between countries, the GDP per Capita is used. To calculate the GDP per capita, the GPD is divided by the number of residents in a country.
 +
 +===== GDP International Comparisons =====
  
 //If a country has a larger GDP than another country//, it is considered that the economy of the country with the larger GPD is "​bigger"​. Small countries, like Japan and South Korea, can have a large GDP. On the contrary, big countries, like Kazajstán, can have a small GDP. //If a country has a larger GDP than another country//, it is considered that the economy of the country with the larger GPD is "​bigger"​. Small countries, like Japan and South Korea, can have a large GDP. On the contrary, big countries, like Kazajstán, can have a small GDP.
 +
  
 The top 10 countries by GDP (by purchasing power parity) are: The top 10 countries by GDP (by purchasing power parity) are:
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 {{:​en:​top-10-countries-gdp-ppp.png?​nolink|}} {{:​en:​top-10-countries-gdp-ppp.png?​nolink|}}
  
-===== GPD Definition ===== +===== How is GDP Calculated=====
- +
-// GPD is the monetary value of all the goods and services produced within the borders of a country during a specific time period.// +
- +
-===== How is GDP Calculated =====+
  
 GDP is calculated using the following formula: GDP is calculated using the following formula:
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 Worldwide, net exports sum is cero. Some countries, are big net exporters, like Germany (6.6% of GDP) and Russia (9.4% of GDP). Other countries are big net importers, like US (-4.3% of GDP), UK (-6.2%), Greeceland (-7.9%) and Portugal (-9.8). (''​Data from 2010, take into account that net exports are very volatile''​) Worldwide, net exports sum is cero. Some countries, are big net exporters, like Germany (6.6% of GDP) and Russia (9.4% of GDP). Other countries are big net importers, like US (-4.3% of GDP), UK (-6.2%), Greeceland (-7.9%) and Portugal (-9.8). (''​Data from 2010, take into account that net exports are very volatile''​)
  
-===== What does Gross, Domestic and Product means ===== 
  
-**Product** means the value of final goods and services. It can also be seen as the added value by each production stage or the sum of the rents to the production factors. 
- 
-**Domestic** means that only the production inside the borders of a country is taken into account. If an american person produces inside Germany, that production is taken into account in the GDP of Germany. 
-** 
-Gross** means that capital depreciation is not taken into account. A small portion of the GDP is to replace obsolete capital. This production is considered when calculating the GDP. 
- 
-Another measures of the production of a country are the national product, that consideres the nationality of the factor of production and not it's location, and the net product, that doesn'​t include the production to replace obsolete capital. ​ 
  
  
en/gdp.txt · Last modified: 2018/08/10 10:38 by federico