Ads 468x60px

Friday, 16 December 2011

Gross Domestic Product(GDP)

In a given period of time, GDP of any country refers to the the market value of all final goods and services produced within a country.
The real GDP per capita of an economy is often used as an indicator of a country's standard of living.
Economic growth is the increase in the value of the goods and services produced by an economy or growth of potential output. Economic growth is there fore often seen as indicating an increase in the average standard of living.

GDP can be determined in three ways.

1.Product(output) approach
2.Income Approach
3.Expenditure approach

GDP=Private consumption+gross investment+government spending+(exports-imports).

Consumption: Consumption is normally the largest GDP component in the economy. 
Example:food,rent,gasoline,medical expenditures,jewelry etc

Investment: Investment includes business investment in equipments.
Example:Buying houses,savings,buying stocks,bonds etc.

Government spending:This is the sum of government expenditures on final goods and services.
Example:Salaries of public servants,purchase of weapons for the military and investment expenditure by a government.

Exports:Exports represents the gross exports to other countries.

Imports: Imports represents the gross imports from other countries.

Usually GDP is expressed as a comparison to the previous quarter or year.
For example , if the year-to-year GDP is up 4% means the economy has grown by 4% over last year.

The GDP in India expanded 6.9% in the third quarter of 2011 over the previous quarter. From 2000 until 2011, India's average quarterly GDP growth was 7.45%. It reached the historical high of 11.80% in December 2003 and a record low of 1.60% in December 2002.
Indian economy hurt by high local borrowing costs and a deepening euro-zone crisis.
GDP grew 6.9% from a year earlier. The economy had expanded 7.8% in the January-march quarter.


వెంకట్. బి said...

Fantastic anila

Commodity Tips said...

Thanks for the info, it was really helpful. I'll surely visit back again later.

worldknowledge said...

Thank you very much and keep visiting.

Commodity Tips-MCX Tips said...

Thanks for sharing your info with us and it is really interesting.. I would like to read more from you. Really nice post, thanks for sharing.

MCX Tips

Post a Comment