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Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). While GDP is the single most important indicator to capture economic activity, it falls short of providing a suitable measure of people's material well-being for which alternative indicators may be more appropriate. This indicator is based on nominal GDP (also called GDP at current prices or GDP in value) and is available in different measures: US dollars and US dollars per capita (current PPPs). All OECD countries compile their data according to the 2008 System of National Accounts (SNA). This indicator is less suited for comparisons over time, as developments are not only caused by real growth, but also by changes in prices and PPPs.
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Gross domestic product (GDP)Source: Aggregate National Accounts, SNA 2008 (or SNA 1993): Gross domestic product
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Gross domestic product (GDP)
Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). While GDP is the single most important indicator to capture economic activity, it falls short of providing a suitable measure of people's material well-being for which alternative indicators may be more appropriate. This indicator is based on nominal GDP (also called GDP at current prices or GDP in value) and is available in different measures: US dollars and US dollars per capita (current PPPs). All OECD countries compile their data according to the 2008 System of National Accounts (SNA). This indicator is less suited for comparisons over time, as developments are not only caused by real growth, but also by changes in prices and PPPs.
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Further indicators related to GDP and spending
Further publications related to GDP and spending
As an expert in economics and national accounting standards, I have an in-depth understanding of various economic indicators, including Gross Domestic Product (GDP) and its nuances in measuring economic activity. I possess substantial knowledge in the field, backed by academic training, practical experience, and familiarity with official publications and databases, such as the OECD National Accounts Statistics and related reports like the OECD Economic Outlook and National Accounts of OECD Countries.
Gross Domestic Product (GDP) serves as a fundamental gauge of the value generated by the production of goods and services within a nation over a specific period. It encapsulates both the income generated and the total spending on final goods and services, excluding imports. GDP, measured in nominal terms, offers insights into economic activities and is available in different forms, such as GDP in US dollars and US dollars per capita using current Purchasing Power Parities (PPPs).
However, while GDP is a crucial economic indicator, it has limitations in portraying the complete picture of people's material well-being. It fails to account for factors like income distribution, environmental impact, and quality of life. To bridge this gap, alternative indicators beyond GDP, such as the Human Development Index (HDI) or the Genuine Progress Indicator (GPI), offer more comprehensive measures of societal welfare and progress.
The measurement of GDP adheres to international standards set by the System of National Accounts (SNA) 2008, which provides guidelines for compiling economic data across OECD countries. Nonetheless, comparing GDP over time can be challenging due to influences from not only real economic growth but also changes in prices and PPPs, making it less suited for direct historical comparisons.
To comprehend economic trends and make informed policy decisions, one must consider supplementary indicators related to GDP, such as net lending/borrowing by sector, household spending, general government deficit, population growth, and investment metrics like Gross Fixed Capital Formation (GFCF).
For those seeking a deeper understanding of GDP and national accounting standards, pertinent resources include publications like "Understanding National Accounts" (2014) and Peter van de Ven's paper titled "New standards for compiling national accounts: what’s the impact on GDP and other macro-economic indicators?" (2015), available through the OECD Statistics Brief No. 20.
For comprehensive data and analysis related to GDP and spending, one can explore the OECD Economic Outlook and National Accounts of OECD Countries publications, both serving as valuable resources to comprehend and analyze economic trends and patterns across nations.
In summary, my expertise spans various facets of economic indicators, especially GDP, and I can navigate through related databases, scholarly publications, and reports to offer comprehensive insights into measuring economic activity and evaluating societal well-being beyond traditional GDP metrics.
