Home

GDP is known as the acronym for “Gross Domestic Product” is the monetary value of all goods and services produced in a given region, during a given period, usually one year. As a popular slang, GDP is one of the most used indicators in the macroeconomy since its main objective is to measure economic activity, taking into account only the goods and services produced within the formal economy of a given territory regardless of the origin of the companies, excluding everything that occurs in the context of the informal economy, or illegal business.

To analyze the behavior of a country’s GDP, it is necessary to differentiate nominal GDP, real GDP and GDP per capita.

  • Nominal GDP is characterized by value or current market prices of goods and services produced in a given time. When it is indicated that current prices are taken into account, they are those that are established in the goods and services at the time of determining the GDP, which are often affected by inflation or deflation, and in this context experts suggest taking Real GDP counts.
  • Real GDP is calculated by the constant price of final goods and services produced in a country. Constant prices are calculated from a base – year that allows eliminating changes that arise in prices as a result of inflation or deflation.
  • GDP per capita is the division of GDP by the number of inhabitants of a country. The respective indicator as a measure of social welfare or quality of life of the inhabitants that make up a country is strongly criticized because it ignores the economic inequalities that exist between the inhabitants since it attributes the same level of income to all.

GDP is calculated as flow of expenses or income flow. In the first case, the following indicators are taken into account:

  • The consumption of goods and services acquired by family and businesses.
  • Investment especially by companies.
  • Public expenditure acquired by the Public Administration, in this context the salaries of public officials are also included.
  • The result of exports – imports.

However, as income distribution, it is taken into account: salaries, rents, taxes (VAT, income received by the State), benefits received by the owners of the company, and depreciation.

In relation to the results that may arise in the calculation of GDP, if the GDP of a country increases indicates an increase in the production of a country, as well as an increase in economic investment. Also, a GDP growth represents income for the government through taxes, therefore, the role of the State in the economic strengthening of a country and providing security and conditions for the investment of new businesses and growth is of utmost importance. of the existing ones.

GDP and GNP

The GDP includes the income generated by foreign citizens who work in the country, but not the nationals of the country who work abroad as it will be calculated in the GDP of the other country. For its part, the GNP is the income generated by the citizens of one country, and by the citizens of the same country that is in another, and excludes foreigners who live in the country.

  • Sulawesi, Indonesia Sulawesi, Indonesia - Sulawesi is a real reserve of cultures and traditions, and besides, it’s just a very beautiful and green island. Cave burials, exotic nature, Buton Island Reserve, diving among the coral reefs in the Manado Bay area, mountain lakes, magnificent folk...
    Read more
  • Home What is Home? - Domicile comes from the Latin domicilĭum which, in turn, has its origin in the term domus (“house”). The concept is used to name the permanent and fixed home of a person. For example: “I’m going to order a taxi to...
    Read more
  • Diocese What is Diocese? - A word from Byzantine Greek (dioíkēsis) passed into late Latin (dioecēsis) before reaching our language as diocese. This is the name given to the territory over which a bishop has jurisdiction. It should be remembered that a bishop is an...
    Read more
  • Atlanta, Georgia Atlanta, Georgia - According to Ehuacom, Atlanta is a city in the US state of Georgia. The city itself is not that big with 496,000 inhabitants, but the conurbation is the 9th largest in the United States, with 6,144,000 inhabitants (2021). Introduction According...
    Read more
  • Gary, Indiana Gary, Indiana -   Gary City in the United States Location State Indiana County Lake County Coordinates 41°34’51″N, 87°20’44″WL General Surface 148.18 km² – country 128.82 km² – water 19.36 km² Inhabitants (1910) 15,802 (123 inhabitants/km²) Website gary.gov Gary.’s City Hall According to...
    Read more
  • Miami, Florida Miami, Florida - Miami is the largest city in southeastern Florida and the second largest city in the United States. It is one of the youngest cities in Florida, located between the swamps of the Everglades National Park and the waters of the...
    Read more
  • San Diego, California San Diego, California - The coastal city of San Diego is located on the southwestern edge of California, near the border with Mexico. The neighboring city is Mexican Tijuana. It is the second largest city in California and the eighth largest in the United...
    Read more
  • slide What is Slide? - A slide is a photograph that is created on a transparent material. This is a positive print, presenting true colors, developed using a photochemical process. The traditional slides were obtained from the cutout of the frames of a film. These...
    Read more
  • detoxification What is Detoxification? - The Royal Spanish Academy (RAE) does not include the term detoxification in its dictionary. The notion is often used to refer to the neutralization and elimination of toxins (a toxic or harmful substance produced by a living being). In the...
    Read more
  • Designation What is Designation? - Designation, from the Latin designatĭo, is the action and effect of designating. This verb refers to point out or allocate someone or something for an end, to indicate or to name. For example: “The appointment of the coach will take...
    Read more