What is GDP? The concept of gdp and gpp Included in the gdp of the country.

Gross domestic productis an indicator of the market value of final goods and services produced over a certain period of time.

Since GDP is a market value, it is therefore measured in monetary units; This means that GDP includes the cost of those goods and services that are valued by the market (GDP includes everything that is sold). Because We are talking about final goods and services, which means that GDP reflects the cost of only goods ready for consumption.

The cost of the final product is calculated by summing up the added value that is created at enterprises. Added value is the difference between the income from the sale of an enterprise's products and the costs of purchasing raw materials, energy and semi-finished products. Thus, GDP excludes the calculation of the value of intermediate products. The GDP indicator does not reflect the economic well-being of a country, it reflects economic strength.

There are several methods for calculating GDP:

Method 1: by expenses.

This method can be shown as follows:

Y = C + Ig + G + Nx,

Where: Y- GDP;

WITH - Personal consumer expenses (expenses on current goods + expenses on durable goods + expenses on services);

Ig - Gross private investment. Gross- means cumulative. Private- that means in the private sector of the economy. Investments are real capital investments (purchase of machinery, land, equipment, etc.).

Gross private investment consists of two components: Clean investments are investments in the real economy, and therefore there is an increase in buildings, structures, machinery, and equipment. But if such an increase does not occur, then this means that there was no net investment, but only depreciation expenses. Depreciation is capital investment in new buildings, machinery, equipment to replace outdated ones;

G - Government procurement of goods and services. All government expenditures are aimed at goods, services, and resources that are necessary for the functioning of the public sector of the economy. The state also acts as a monopolist in the consumption of certain goods and services, for example, weapons;

Nx- net exports. Net exports are an indicator that is calculated as the difference between exports and imports. The cost of imports is subtracted from the value of exports - this is net exports (expenses of foreign consumers on domestic products). Net exports are positive if their value is higher than the value of imports.

A growing economy is an economy where there is net investment; if there is none, then the economy produces products in constant volumes.

Thus, we have the main economic identity:

Y = C + Ig + G + Nx

Method 2: calculating GDP by income.

GDP consists of three components:

1 component: the sum of factor incomes across the national economy;

2 component: depreciation;

Component 3: indirect taxes.

Factor incomes (form national income):

Wages, rent, profit, interest. Received from the sale of factors of production: labor - wages; capital - interest; entrepreneurship - profit; land - rent.

Other macroeconomic indicators:

Net Domestic Product (NDP):

NVP = GDP - depreciation

This indicator reflects the cost of production goods and services that the national economy can consume. Thus, PVP contains only pure investments.

National income (NI):

ND = PVP - Indirect Taxes (KT)

This indicator reflects the efficiency of resource use in a country because it contains factor income.

Personal Disposable Income (PDI):

JPL = ND - 1,2,3 + transfer payments,

Where: 1 - social insurance contributions.

2 - corporate income tax.

3 - retained earnings of corporations (this is the profit that is not distributed among shareholders), which is directed towards modernization or expansion of the enterprise (reinvestment).

Inflation and macroeconomic indicators:

Real GDP = Nominal GDP / Deflator (D)

Real GDP is nominal GDP adjusted for inflation.

Real macroeconomic indicators are nominal macroeconomic indicators adjusted for inflation. The rate of inflation is reflected in the deflator.

Deflateto p is the GDP price index. Deflator- reflects the price index in the economy for a certain period of time (how prices for goods and services have changed over a certain period of time). Deflator- a price index that reflects changes in prices for all goods over a certain period of time.

For example: Deflator = 110% for 2006, this means the inflation rate is = 10%. Nominal GDP will grow by at least 10% over the year

Deflation is the opposite side of inflation.

If the deflator was less than 100%, this means that real GDP will be greater than nominal GDP.

When inflation occurs, nominal GDP grows, as a rule, due to an increase in the price level, and it is not yet clear whether it grows due to an increase in output.

There are indices that reflect changes in the price level not for all goods, but only for a certain group. And if we are talking about changes in prices for consumer goods, then they are reflected consumer price index (CPI).

Thus, deflator- reflects changes in prices for all goods produced in the economy, and the consumer price index - reflects changes in prices only for consumer goods.

Consumer goods are those goods that are consumed by households. Changes in prices are captured by the consumer price index - CPI.

Real wage= nominal wage/CPI.

GDP is the “wallet” of the state

The initial letters of the expression “Gross Domestic Product” (what did you think?)
Gross domestic product is one of the most important economic indicators economic activity countries. It indicates the market value of all goods and services produced in the country during the year for the purpose of consumption, export and accumulation, with the exception of the cost of intermediate goods and services, that is, raw materials, fuel, energy, feed and others.

This is done to avoid double billing. For example, the cost of a car includes the cost of the iron from which steel is made; steel from which rolled products are produced; rolled metal from which the car is made.

GDP - (decoding - Gross Domestic Product) is the most complete indicator of social welfare. It gives an idea of ​​the overall material well-being of a nation, since the higher the level of production, the higher the welfare of the country.

Gross domestic product is determined by money, because only money serves as a measure of the cost of goods and services; only with the help of this universal equivalent can wheat and washing machines, books and tractors be added up, Cell phones and the services of shoemakers and doctors.

There is nominal and real GDP. The first is expressed in current prices of a given year. The second is in prices of the previous or any other base year. Real GDP takes into account the extent to which GDP growth is driven by real output growth rather than price increases.

Gross domestic product is expressed in national currency, but for the convenience of international relations, GDP is calculated in US dollars. Comparability of indicators is ensured by a unified methodology for determining GDP, developed by the UN Statistical Service and adopted in most countries of the world.

The history of the emergence of calculations of Gross Domestic Product

The first attempt to measure the economic activity of the state was made by former Russian citizen and then American economist Simon Kuznets (Shimon Abramovich Kuznets). His first calculations appeared in 1934. In 1937, he presented to the US Congress calculations of indicators of US economic activity for 1929 - 1935. In 1971, for his scientific exploits, S. Kuznets was awarded the Nobel Prize in Economics

Leaders in terms of GDP for 2012 (in millions of dollars)

• USA - 72,440,449
• China - 16,244,600
• Japan - 8,223,103
• Germany - 5,959,718
• France - 2,612,878
• UK - 2,471,784
• Brazil - 2,252,616
• Russia - 2,014,775
• Italy - 2,014,670
• India - 1,841,717

In 2013, GDP growth in Russia was 1.3%

Video

We often hear words about this or that value or change in GDP in economic news. “The World Bank predicts a decline in Russia’s GDP by 3%” or “Russia’s GDP per capita at purchasing power parity decreased by $500.” What does this mean for ordinary people in simple words?

GDP or gross domestic product is the value of all goods and services produced by a country. It is usually calculated per year. GDP can be expressed either in a country's national currency or, for comparison purposes, in US dollars. They add up everything: the cost of sold gasoline, cars, tour packages, etc.

For ease of understanding, in the future we will calculate the GDP indicator for the Ivanov family, consisting of 3 people - mother, father and child. For example, such a family earned 900 thousand in 2013, and in 2014 already 1 million rubles.

There are 3 types of GDP. The first of them is quite formal and is called nominal GDP.

Nominal GDP

Nominal GDP is calculated at current prices and does not include inflation. Thus, the nominal GDP of the Ivanov family in 2013 amounted to 900 thousand rubles, and in 2014 – 1 million. The growth of the family’s nominal GDP was 11.1%. Formally, the Ivanov family began to live 11.1% better in 2014 than in 2013. However, this is not so, because prices also increased in 2014. And here we have to turn to real GDP.

Real GDP

Real GDP takes inflation into account. According to official data for 2014, it was 11.4%. For the Ivanov family, real GDP will be 11.1% – 11.4 = -0.3%. That is, in reality, they began to live worse by 0.3%, even despite the increase in income.

Until now, we have compared ruble prices, but if we want to understand how the well-being of the Ivanov family has changed on a global scale, we will have to recalculate GDP in dollars. Let's get the so-called GDP per capita purchasing power, which is considered the most adequate value for assessing the level of wealth of citizens of a particular country.

GDP at purchasing power parity per capita

GDP per capita purchasing power parity simplified = the value of all goods and services produced by the inhabitants of a country, expressed in US dollars / the total number of those inhabitants. For the Ivanov family it will be:

• Purchasing power parity in 2013 = 900,000 / 32.7 = $27,523 (at the dollar exchange rate as of December 30, 2013);
• Purchasing power parity in 2014 = 1,000,000 / 56.4 = $17,730 (at the dollar exchange rate as of December 30, 2014).

As we can see, the Ivanovs’ GDP purchasing power in 2014 decreased by almost $10,000. In percentage terms, the change was 64%. At the same time, the GDP value at purchasing power parity per capita for this family of 3 people was $5910. A basket of goods may also be involved in calculating GDP according to PPP, but for the first acquaintance with the concept of purchasing power, the given simple mechanism is sufficient.

GDP is considered the most important indicator of the success of a country’s economy and the prosperity of its residents. It is clear that when it grows (real or GDP per capita), the country’s economy and its population are good. A decrease in GDP means problems in the economy and a decrease in the well-being of citizens.

Hello, dear readers of the blog site. The abbreviation "GDP" stands for " gross domestic product" Let’s immediately make a reservation that this concept has nothing to do with food products (although it does, but indirectly).

In this article we will look at what the term GDP means and why the level of GDP is determined by its quantitative characteristics. economic development states.

GDP as an economic indicator

Gross domestic product is total cost all goods produced in a particular country, services provided, work performed within one year.

When calculating, information is taken from all enterprises, organizations, funds, etc. located on the territory of a given state. The nationality of these objects is not taken into account.

The concept of GDP was first used in the thirties of the 20th century by economist Simon Kuznets. This indicator can be calculated in different currencies, depending on what this indicator is used for:

1. in national currency;
2. in US dollars;
3. in the currencies of any countries at the exchange rate on the day of calculation.

When assessing an indicator within the framework of international analysis, the dollar is used; when published in the media within the Russian Federation, the ruble is used.

There is also a concept (gross national product), which is also very close in meaning to the term discussed today, but still has significant differences from it. In order not to stop there, I suggest watching a useful video on this topic:

How is GDP calculated?

There are 3 methods for calculating GDP:

1. By income(distribution method). The following indicators are summed up:
   1. salaries, additional and social payments (pensions, bonuses, child care benefits, etc.);
   2. business income;
   3. taxes (import, land, duties, etc.);
   4. bank interest on deposits;
   5. rental and rental income;
   6. depreciation deductions.
2. By expenses. This includes:
   1. production costs;
   2. household consumption costs (food, clothing, utilities);
   3. investment costs;
   4. government spending (health care, education, national defense, culture);
   5. the amount of net exports (the difference between exports and imports).
3. By added value(DS) (production method). The difference between the costs of producing goods or providing services (purchase of raw materials, wages, rent, interest on loans, etc.) and the revenue received for them is summed up. This amount does not include taxes on goods produced or services provided.

   Let's calculate VA (value added) using the example of baking a loaf of bread for sale:

   1. the farmer grew grain and sold it to the mill for 5 rubles. for 1 kg. Its cultivation costs (equipment, land tax, diesel fuel) amounted to 3 rubles. per 1 kg of grain. VA at this stage = 5 (revenue) – 3 (costs) = 2 (RUB/kg);
   2. the grain was ground into flour at the mill, the cost of its production = 2 rubles. per 1 kg. The flour was sold to the bakery for 10 rubles. per kg. VA of this stage = 10 (revenue) – 2 (costs) – 5 (purchase) = 3 (rub./kg);
   3. The bakery produced bread and sold it to the retail chain for 20 rubles. per kg, manufacturing costs amounted to 3 rubles. for 1 kg of bread. VA of the last stage = 20 (revenue) – 3 (costs) – 10 (purchase) = 7 (rub./kg);
   4. the final VA of a kilogram loaf of bread = 2 (VA at the farmer) + 3 (VA at the mill) + 7 (VA at the factory) = 12 (rub.).

What is “GDP per capita”

The GDP indicator for the country as a whole cannot fully serve for an objective comparison of the level of economic development of different countries.

A simple example: in country “X” the annual gross product is 1 million conventional units (cu), the number of inhabitants is 500 thousand people. In country “Y” the GDP is also equal to 1 million. e., and its population is 1 million people. It seems that the total indicator is the same, but country “Y” is twice as poorer country"X". Why?

The answer is obvious: GDP per capita for “X” = (1,000,000 USD / 500,000 people) = 2 USD. e., and “Y” = (1000000 cu / 1000000 people) = 1 cu. e.

Conclusion: the “GDP per capita” indicator is the gross domestic product for the country as a whole, divided by the number of its citizens.

This indicator is a more objective criterion when assessing the standard of living of people in a particular state. Let's see on the graph how it changed GDP per capita in Russia from 1993 to 2016:

Types of gross domestic product

The gross domestic product indicator can be real or nominal. Let's analyze how these types differ in the following table:

Table No. 1

What is the GDP deflator

The ratio of nominal GDP to real GDP is called the GDP deflator (GDP). Essentially, it is a price index for goods and services produced in the country. Calculation formula:

DVVP = (NVVP / RVVP) x 100%.

Knowing the DVVP and the calculated value of the NVVP, you can calculate the RVVP:

RVVP = (NVVP / DVPP) x 100%.

Why is GDP needed?

The annual calculation of GDP allows you to compare the numerical values ​​of this indicator over a certain period of time. In this way, the dynamics of the country's economic development are monitored.

This indicator allows you to analyze actual condition economic development of the state and level of well-being its citizens.

Knowledge of the indicator and analysis of its dynamics is necessary to regulate the state’s credit policy and to determine the exchange rate of the national currency in relation to the currencies of other countries.

For example, the higher the GDP in Russia, the more stable the economy and the higher the ruble exchange rate. If this indicator decreases, this indicates that imports of goods have increased, and domestic production has decreased.

Therefore, the policy of import substitution is very important for the country’s economy. The more goods there are in a country Russian production, the higher the GDP, the stronger the ruble exchange rate and the higher the well-being of Russian citizens.

Comparison of GDP of Russia and other countries for 2017

Let's look at the GDP of the world's countries in 2017 in the table below. As a criterion for comparison, we take the absolute value, i.e. value of gross product excluding population and income (PPP).

PPP is the amount of a national currency, expressed in the currency of another country, for which one can purchase the same product (service) in both countries.

For example: product “X” in Russia costs 1900 rubles, and the same product in the USA costs 50 dollars. In this case, PPP = 1900 / 50 = 38 (rubles per dollar).

Table No. 3

The tables clearly show that, despite the relatively high GDP Russia in absolute terms (13th place in the world), our GDP per capita is very small (only 72nd place in the world ranking).

Brief analysis of Russia's GDP indicators for 2018

According to official statistics published in the Report Federal service state statistics, for the 1st half of 2018, nominal GDP (in current prices) amounted to 47,086 billion rubles. This is 5,303.9 billion rubles more than for the same period in 2017 (41,782.1 billion rubles).

Even taking into account the fact that both indicator values ​​are calculated in prices of the corresponding periods, we can conclude that stable positive dynamics of economic development countries. GDP growth in percentage terms was 1.6%. This corresponds to the forecast of the Central Bank (CB) of the Russian Federation for 2018. According to the Central Bank, growth for this year will vary from 1.5 to 2%.

The Central Bank of the Russian Federation predicts that in 2019 GDP growth will be 1.4%. This figure was announced after the Government of the Russian Federation decided in August of this year on the upcoming increase in VAT. Previously, this figure was predicted at 2.2%.

Good luck to you! See you soon on the pages of the blog site

You might be interested

What is GNP: types and differences from GDP What is emigration and how is it different from immigration? What is immigration Parity - what is it and what does it look like (purchasing power parity, currency, nuclear) What is import - the relationship with exports, state policy regarding imports and import substitution What is industrialization What is inflation (in simple terms) What is an embargo in simple words Macroeconomics: what is it, how does it differ from microeconomics and what does it study (subject of research) What is labor productivity: definition and formula

Almost everyone who has read or watched economic news has come across the concept of GDP. For ordinary people it may seem complicated and incomprehensible, but in fact it is not.

GDP is a macroeconomic indicator that characterizes the level of development of a state; the sum of all services and goods produced in a country over a certain period, expressed in monetary terms. The cost of the gross product includes absolutely everything: from sold tourist packages, cars, public transport to chewing gum and movie tickets.

What is the difference between GDP and GNP

In addition to GDP, there is also such a thing as Gross National Product. Although they are similar to each other, there is a fundamental difference in the calculations. GDP takes into account the cost of services and goods manufactured only on the territory of the state. However, thanks to the international division of labor, part of the capacity of national enterprises is located outside its borders.

This is primarily due to the distribution natural resources, as well as the price for labor. For example, many American companies have factories in China and India. It turns out that the budget of enterprises is replenished by other states. GDP takes into account all services and goods within a country, and GNP are goods and services produced by national companies.

Types of gross domestic product

There are three types of gross product:

• nominal;
• real;
• per capita.

For simplicity, let’s look at GDP using the example of an ordinary family of 3 people. Let’s say in 2010 the total family income was 900 thousand rubles, and next year – 1 million rubles.

Nominal gross product is calculated without taking into account inflation, that is, to determine the growth rate of nominal GDP, you just need to divide the 2011 figure by the 2010 figure and multiply by 100%. It turns out that in 2011, family income increased by 11.1 percent over the year. Everything would be fine, but nominal GDP does not take into account rising prices.

Actually, real GDP takes into account inflation. In 2011 it was at 11.4 percent. Taking this fact into account, in 2011 the family began to live 11.1-11.4 = -0.3 percent worse than last year. These calculations show the financial status of a family within a country. To compare well-being with families from other countries, the GDP of a Russian family must be converted into dollars - this indicator is called purchasing power per capita.

Find out the level of GDP

Every resident of the country can find out the GNP or GDP indicators for any period. To do this, you need to visit the official Rosstat website.

To calculate GDP, the statistics department uses three methods:

• by added value;
• distribution;
• according to expenses.

Moreover, the total amount in three cases is absolutely the same. In fact, this is logical - the amount of macroeconomic income equals the amount of expenses.

The distribution method of calculating gross domestic product includes:

• indirect taxes;
• depreciation;
• net income from trade with foreign agents;
• national income.

The most multifactorial indicator listed above is national income. It consists of:

• rental income;
• salaries and bonuses;
• entrepreneurial profit;
• interest on loans.

In the distribution system does not take into account the salaries of civil servants and direct taxes.

The calculation of GDP by expenditure takes into account:

• consumer spending – expenses for the purchase of goods, clothing, medicine, transport, education, etc.;
• investment expenses - investments in production, resources, real estate and fixed assets;
• public expenditures – public investments, expenditures on national security, maintenance of the government apparatus;
• trade balance.

The production method or value-added method represents the difference between income and the cost of goods manufactured. To calculate GDP, you need to sum up all the added value for each industry.

Russia's GDP in 2017

According to Rosstat's initial estimate, GDP growth in 2017 was 1.5 percent, which is comparable to the forecast of the Ministry of Economic Development made at the end of December 2016. In monetary terms, the gross product exceeded 92 trillion rubles. The price inflation index for 2017 was 5.5 percent. The largest revenue growth last year was in the entertainment, sports, wholesale and transportation sectors.

A drop in income was observed in healthcare, construction and education. For final consumers, expenses increased by 3.4 percent, but gross capital formation, on the contrary, grew by as much as 7.6 percent. Imports of goods exceeded exports by 12 percent. As you can see, economic indicators are not very difficult to understand. Thanks to them, you can understand the vector of the country’s development, and this is one of the main elements of the well-being of every family.