As news often speak of a forecast fall in gross domestic product growth of different countries.We will understand that the meaning of GDP, its formula for calculating what constitutes and what are the different types of indicators.
concept
GDP - gross domestic product is.This indicator is used to assess the different economies.Gross domestic product displays all produced goods and services provided by the country, for which calculated.The formula for calculating GDP includes all goods and services produced or provided in the state.
Typically, gross domestic product is calculated for 1 year.In Russia, it is calculated in rubles, and if you want to compare the figure with other countries, the mathematical way convert it into US dollars.
There are several types of GDP, the formula for calculating each of them their own, and they are intended to better reflect the situation of the economy, taking into account various factors.
Pro nominal gross domestic product
Nominal GDP is a standard measure for displaying the dynamics of the state's economy.Its value depends on the volume of production, as well as changes in the level of prices for manufactured products.
Nominal GDP, the formula of which is given below, must not be used to compare the economic development of different countries.In addition, it is not suitable for comparison of the economic development of the same country in different periods.
It is calculated as the sum of all produced goods and services rendered within the country:
Nominal GDP = Σ made production country + Σ services rendered.
real GDP, the formula of its calculation and the conclusions that can be drawn
Real GDP shows the volume of produced goods and rendered services taking into account inflation.This type of indicator is more approximate to the understanding of the real state of the economy and the level of production
There are cases that the GDP increased by a few percent over the year, while the inflation rate over the same period more than 10%.And this figure shows that the economy is getting worse, despite the increase in production.That is, to see the real picture, to take into account inflation in the study period, you must use the real GDP.
formula for calculating real gross domestic product:
Real GDP = nominal GDP / general price level.
With price index can be calculated as the total of their level, which is used in calculating real GDP.Often used as a price index CPI (consumer price index).CPI can be calculated on the basis of cost of production, which is included in the consumer basket.
There are calculations of real GDP on the basis of the PPI (producer price index).This figure is different in that the calculation includes only manufactured goods, excluding services rendered.It uses only the prices manufacturers.
This indicator is usually calculated by state statistics in different countries, as well as private companies that engaged in the analysis of the economy.
gross domestic product at purchasing power parity
To calculate this indicator, the following formula for calculating GDP:
gross domestic product at purchasing power parity = Nominal GDP in USD / number of people in the country.
This figure is highly questionable, although it is used to compare different economies.When calculating its economists conventionally use the principle of purchasing power parity.According to him, in different countries, you can buy the same products for the same price at the correct rate recalculation of different national currencies.
Today the leader in the economic development of this indicator is China, which recently walked the eternal leader - the United States.
Pro GDP deflator
deflator of gross domestic product - a special index of GDP, which is the formula for calculating the following:
GDP deflator = (nominal GDP in prices of the current year / real GDP) * 100% of base year.
calculation is based on current prices in the consumer basket, in contrast to the consumer price index is based on prices of the base period.
is necessary to pay attention to the fact that the calculation takes into account all the goods and services that the country has produced.Also, the index does not include products that have been imported.
using this index can not be fully adjusted for inflation.When analyzing the deflator should be aware that it takes into account new products and services that might not be in the base period.
GDP is an important indicator of the state of the economy
Due to the analysis of the dynamics of all kinds of gross domestic product can be judged on the state of the national economy.For example, if only increased the nominal gross domestic product, it still does not mean that the increased production.It is necessary to synchronize with real GDP growth, which shows the result of economic growth, adjusted for inflation.
In order to compare the economy of different countries, make better use of the gross domestic product, which will take into account the purchasing power parity.After calculating the gross domestic product per person can understand and compare the efficiency of different population of the country.
It is clear that if the real gross domestic product of the country is constantly growing, it shows the growth of the welfare of each of its citizens, as well as an increase in their purchasing power.If indicators of gross domestic product is continuously falling, the government needs to think about the reasons.
