GDP - 10 mins Seminar Notes

GDP - 10 mins Seminar Notes 

GDP -Gross Domestic Product
GDP is a monetary measure of the market value of all the final goods and services produced within the country in a specific time period-annually.

•    King of economic statistics
•    Important tool to measure the health and strength of a country’s economy.

Background
•    1654-76  William Petty, came up with the basic concept of GDP to attack landlords against unfair taxation during warfare between Dutch and English
•    1695 – Charles Davenant, developed this method further
•    1934 – Simon Kuznets, Developed the modern concept of GDP.
•    1944 – Bretton Woods conference, GDP became the main tool for measuring the country’s economy.

How to Calculate GDP
GDP= Consumption + Investment + Government Spending + (Exports – Imports)

•    Consumption- Consumer spending(buying dress, drinking coffee) consumption represents 50% of the country’s GDP
•    Investment- Business, Building, Land, Equipment, Buying home.
•    Government Spending- School, Roads, Defence..
•    If GDP is rising, the economy is in good shape and
   The nation is moving forward.
•    If GDP is falling, the economy is in trouble and the
 Nation is losing ground.

How can we say? If GDP increases the country’s economy is growing
•    Hire more workers, hike in salary and wages, leads to consume more products.

World GDP Rank

• US -21.8 Trillion
• China -15.5 Trillion
• Japan -5.3 Trillion
• Germany -4.42 Trillion
• India -3.16 Trillion
  

Presented By 

Nithya P

TNPSC Student

Magme School of Banking