How to calculate gdp
Video: Calculating Gross Domestic Product 2024, July
GDP - gross domestic product - is the market value of all goods and services intended for direct consumption that were produced during the year in all sectors of the country for consumption, export or accumulation. This is one of the main indicators of the state economy. This indicator is calculated as nominal and real - adjusted for inflation. Typically, GDP is calculated quarterly and per year.
You will need
Statistics on the sectors of the economy for the required period, it is advisable to use specialized programs to facilitate the calculation. Directly for the calculation, you should choose one of three methods.
Instruction manual
1
To calculate GDP using the value-added method, the cost of exclusively final goods and services should be calculated, excluding intermediate goods that would entail double counting. In this case, the value added is the market price of the products of the enterprise, minus raw materials, therefore, in calculating GDP, only the amounts at the market price of all goods released and services rendered are used.
2
To calculate the GDP of expenditures, you should summarize all the costs of economic entities for the purchase of final products. This method summarizes consumer spending, private investment in the national economy, government procurement of goods and services, and net export of the country.
3
To calculate GDP by income, you should summarize all the incomes of owners of factors of production operating in the geographic framework of the country, both residents and non-residents. This method sums up wages, social security contributions, gross profit, gross mixed income, taxes on production and imports, net of subsidies.
note
Many business entities - private individuals and enterprises deliberately distort the value of their incomes, hiding them from taxation, so the resulting GDP figure is not a complete reflection of the economic results of the work for the period
Useful advice
In theory, all methods should give the same number, but in practice this is not so, in particular due to methodological discrepancies in the time taken into account for different indicators.
- Detailed article on GDP calculation methods
- calculate gdp by income
