ordinary man without economic education is quite difficult to understand what GDP.In economics, this figure is very important.Based on it, we can estimate the level of economic development of the country and its competitiveness on the international market.
Gross Domestic Product (GDP) - a set of goods (goods and services), produced by residents in the territory of a particular country for a year, expressed in prices of the end product.
Simply put, the gross domestic product - the total number of all goods and services produced by all enterprises and organizations in the country for a certain reporting period (usually estimated calendar year).
What is GDP in the economy?
This indicator is very important in assessing the effectiveness of the country's economy.Gross domestic product characterizes the rate of growth and the level of its development.GDP is often used to evaluate the standard of living of the population of the state.The higher the score, the higher the standard of living is considered (the link between performance does exist, but you must use other more specific economic indicators).
nominal and real gross domestic product
GDP index can be of two types:
- Rated (calculated at prices of the current period).
- Real (calculated at comparable prices of the previous period).Most often taken for comparison prices of the previous year.
calculation of real GDP allows neutralize the impact of price increases this figure to determine the net growth of the state economy.
Most often, GDP is calculated in local currency, however, if there is a need to compare the respective values of different countries, it may be translated into another currency at the appropriate exchange rate.The increase in the volume of global GDP is as follows (2013).
return (distribution) method for calculating GDP
What is GDP in the economy?This is, firstly, the index based on evaluation of the yield of production factors owners.The calculation takes place through their summation.At the same amount of GDP consists of the following components:
- W - the total amount of wages paid to all workers of the country (both residents and non-residents);
- Q - the amount of social security contributions of the population;
- R - profit (gross);
- P - mixed income (gross);
- T - taxes (import and production).
Thus, the calculated formula is: GDP = W + Q + R + P + T
Consumables (production) method
population of the country in the course of their work produces different kinds and forms of the final product (meaning the specificgoods or services that have a certain value).It is the totality of spending on the purchase of final products and work will be gross domestic product.In the calculation of GDP by production figures are summarized as follows:
- C - expenses of the population on consumer needs;
- Ig - infusion of private investment in the economy (gross);
- G - public procurement (purchasing goods and services by the state)
- NX - net exports (difference between exports and imports of the state).
GDP is calculated using the formula: GDP = C + Ig + G + NX
calculation of value added
Institute of Economics allows calculation of GDP by the amount of value added.This method allows you to get the most accurate GDP as throws intermediates which may be mistakenly counted as final in the previously discussed techniques.That is, the use of value-added calculation eliminates the possibility of double counting.Summing up the value added of all goods and services in the country, you can reliably calculate GDP.This is due to the fact that the value added - is the market value of the goods minus the cost of materials and raw materials purchased from suppliers.
GDP per capita
One of the most significant and indicative indicators of the level of economic development of the state.It is determined by dividing the total GDP by the number of inhabitants of the country and shows how many products have been manufactured for a certain period on average by each resident of the state.Also, this figure is called "per capita income".
also frequently used indicator of economic development is the gross national product (GNP), which summarizes the final product produced on the territory of the country and abroad.The main condition is that the manufacturer of the products were residents of that State.
What is GDP in the economy and its role in the analysis of the changes we have already learned.So what are the real GDP of the world today?
Ranking of countries by nominal GDP
This rating is made on the basis of the translated into dollars at the market (either fixed by the authorities), the rate of nominal GDP.The world economy is set up so that the figure for developing countries few undervalued, and have developed - is overstated.This is due to the fact that it is not taken into account the difference in the value of homogeneous products in different countries.
For the first ten, according to the IMF for 2013, as follows:
Ranking of countries by nominal GDP per capita
level of GDP per capita is indicative, but not the most accurate indicator,characterizing the economy as there remain unaccounted specifics sectoral development of the economy, the cost of production, its quality, as well as other equally important elements of the economic system.
list of 10 countries with the highest GDP per capita, according to the IMF in 2013, is as follows:
problem of slowing economic growth in Russia
World crisis processes, as well as a number of subjective economic factors caused that in 2013-2014 years have eased and the economy of Russia.Of GDP, respectively, grew very slowly.So, according to Alexei Ulyukayev, who holds the position of Minister of Economic Development of the Russian Federation, 2013 was the worst for the Russian economy after the crisis of 2008.Its gross domestic product over Russia grew not as fast as expected.Thus, the expected rate of growth of GDP decreased from 3.6% agency at an early period of up to 2.4% in June, and finally 1.4% in December.
situation in the industry has also remained dismal.If there was still producing small gain, the processing even showed a slight decline.Inflation also reached the mark of 0.5% greater than expected.
reasons for the crisis in the Russian economy
Thus, we can see signs of stagnation in the Russian economy.On it there are objective reasons that can be divided into two groups: internal and external.
Internal factors
- economy is raw model.In this model, the main share of income of the economy is formed by exports of raw materials, which eventually exhausted.Also reduces the volume of domestic manufacturing production and its competitiveness.
- Problems with investment attractiveness.The most important condition for the development of certain regions of the country is the presence of investment in the real sector of the economy.Today, many foreign investors puzzled insufficient protected of possible financial investments.It is therefore necessary to take measures to create a modern regulatory and legal environment, as well as to promote international integration processes.
- High costs of business projects.This refers to the excessive spending on fixed assets, payroll, rent and territories, as well as related production costs.It is necessary to carry out a set of measures to reduce the costs.
External factors
- general economic slowdown in Europe.The development of the world economy is cyclical in nature and is accompanied by ups and downs.
- Reduced exports (both in value and physical dimension).It called as the European economic downturn, and the exhaustion of raw materials model of development of the national economy.
Thus, to overcome the crisis in the economy is necessary to reorient the industry, improve the investment climate, as well as hope for the improvement of the general trends in the global economy.
