Gross domestic product is the main indicator of the economic development of the state

The level of development of the country and its stable positionare determined on the basis of a number of economic indicators. These indices make it possible to determine the pace of development not only of the entire state, but also of individual branches. The indisputable leader among such indicators is the gross domestic product. This is the most accurate economic formulation, which is adopted to calculate the market value of the quantity of products produced and services provided within the country. In order to determine this value, a specific time interval is taken. Most often, the main criterion is the calendar year.

gross domestic product is

Indicator composition

Do not forget that the gross domestic product- this is the cost calculation of all those goods and services that have already passed all the stages of their production and have a final form, that is, they can be called "final goods". The volume of output within the territory of one country is taken into account. At the same time, goods produced by citizens of the state, as well as by persons who are in its territory under special permits, are subject to summation. That is, in other words, if any factory, plant or any other enterprise is in the possession of a foreign person or has foreign investment, all the products of this organization are still in the calculation of the described indicator.

The subtleties of the calculus

calculation of gross domestic product

When determining the value of this index, you canencounter some problems. For example, double calculus. Let's say that the plant "N" produces components for the tractors and supplies them to the plant "M", which these same tractors and descend from the conveyor. In this case, all spare parts produced by the first organization are accounted only in its annual balance sheet, and not otherwise.

The gross domestic product is the totalthe cost of all the works and services rendered. Various social services, service stations and the rest of the institutions included in this category are also required to count this indicator. At the same time, the calculation of gross domestic product is a multivariate technology that can be implemented by various methods in order to obtain different indices.

Index calculation

The foundation of the basis for calculating this indicatoris the price. It should be noted that, depending on whether it is valid or the value taken over the previous period, the desired index will be called differently. Nominal gross domestic product lays in its calculation the so-called "current" at the moment (real) prices.

nominal gross domestic product

The formula for this expression is as follows:

  • Value of GDP = total GDP of the country x current price.

Initially, the indicator is calculated for each organization, firm, enterprise, etc. Then the data falls into a single register and is summarized.

If in the above equation the last term is replaced by the price of the base year, then the gross domestic product received is already real GDP.

The differential between the price values ​​of the current andThe previous year displays the price index. Using the value of this indicator, you can get information about the increase or decrease in the growth rates of the country's economic welfare.

Due to this index, the levellife of the population. So, if we divide the value of the gross domestic product by the number of residents and non-residents of the country, we obtain an indicator characterizing the GDP per capita output. This index is the most significant in determining the position of the state in the ranking of the welfare of world countries.