Useful and interested information about What is GDP

 What is GDP?

Title of News: Useful and interested information about What is GDP

Detail about GDP and Types of GDP

If you want to know what GDP is then you must know that GDP is an acronym for what is called Gross Domestic Product. This refers to the wealth that the country has in a year. In other words, we are talking about economic measures that take into account the financial numbers of both goods and services that a country produces in a year.

Now, why measure the market value of a country's products and services? Well, it is because this indicator helps to know that the country has an economy, has been at a low level or, unfortunately, is not good (that is, instead of growing, it decreases).

Another name for GDP is gross domestic product (GDP) so if you see it with other labels you know it's talking about the same thing.

Another fact to take into account about what GDP is who produces it.

You must be sure that this measure is «inside» the product; We are talking about products and services that are produced in the country, not those that are bought. All products produced in the country are considered to be "domestic" products.

who we owe it to is Simon Kutznets who included it in a report from the 30's when the financial deposit was created in the United States. In fact, it does not include only that concept, but many others. And this "invention" earned him the Nobel Prize in economics.

Use of GDP

There is no doubt that this negative concept is useful. But you don't believe it 100%. And it is that, it is not true because it has some "blank", that is to say, there is something special that they do not take in and this can lead to the results that it give. For example, among the negative points on this scale are:

That does not include the entire economy of any country. It only focuses on what they produce, yes, but it doesn't care about outside (companies that outsource work to other countries but get profit in our own), self-creation, or second hand sales. All of that has to be responsible, and it hasn't been.

Not included in the black market account. And it is an important piece of information because, at the moment, it accounts for 25% of the Spanish economy, which is the reason why it is "entering the market" business.

It doesn't measure well. The creator of GDP himself announced in 1932 that his indicator has this flaw, it is not possible to determine the well-being of the country with that data, which is because However, when talking about growth, it is necessary to take into account other indicators.

Type of GDP

Now that you know what GDP is, it's time to learn the three types that exist. And it is that in itself GDP can be three different: Nominal, Real and Per capita.