Gross domestic product

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"GDP" redirects here. For other uses, see GDP (disambiguation).

A map of world economies by size of GDP (nominal) in USD, World Bank, 2014[1]

Gross domestic product (GDP) is a monetary measure of the market value of

all final goods and services produced in a period (quarterly or yearly)
of time. Nominal GDP estimates are commonly used to determine the economic
performance of a whole country or region, and to make international
comparisons. Nominal GDP per capita does not, however, reflect differences in
the cost of living and the inflation rates of the countries; therefore using a basis
of GDP per capita at purchasing power parity (PPP) is arguably more useful when
comparing differences in living standards between nations.

Contents
[hide]

 1Definition
 2History
 3Determining gross domestic product (GDP)
o 3.1Production approach
 o 3.2Income approach
o 3.3Expenditure approach
 3.3.1Components of GDP by expenditure
 4GDP vs GNI
o 4.1International standards
o 4.2National measurement
 5Nominal GDP and adjustments to GDP
 6Cross-border comparison and purchasing power parity
 7Standard of living and GDP: Wealth distribution and
externalities
 8Limitations and criticisms
o 8.1Limitations at introduction
o 8.2Further criticisms
o 8.3Proposals to overcome GDP limitations
 9Lists of countries by their GDP
 10See also
 11Notes and references
 12Further reading
 13External links
o 13.1Global
o 13.2Data
o 13.3Articles and books

Definition[edit]

The OECD defines GDP as "an aggregate measure of production equal to the sum
of the gross values added of all resident and institutional units engaged in
production (plus any taxes, and minus any subsidies, on products not included in
the value of their outputs).”[2] An IMF publication states that "GDP measures the
monetary value of final goods and services - that is, those that are bought by the
final user - produced in a country in a given period of time (say a quarter or a
year)."[3]

Total GDP can also be broken down into the contribution of each industry or sector
of the economy.[4] The ratio of GDP to the total population of the region is the per
capita GDP and the same is called Mean Standard of Living. GDP is considered
the "world's most powerful statistical indicator of national development and
progress"[5].

History[edit]

William Petty came up with a basic concept of GDP to defend landlords against
unfair taxation during warfare between the Dutch and the English between 1652
and 1674.[6] Charles Davenant developed the method further in 1695.[7] The
modern concept of GDP was first developed by Simon Kuznets for a US
Congress report in 1934.[8] In this report, Kuznets warned against its use as a
measure of welfare[1] (see below under limitations and criticisms). After
the Bretton Woods conference in 1944, GDP became the main tool for measuring a
country's economy.[9] At that time gross national product (GNP) was the preferred
estimate, which differed from GDP in that it measured production by a country's
citizens at home and abroad rather than its 'resident institutional units'
(see OECD definition above). The switch from "GNP" to "GDP" in the US was in
1991, trailing behind most other nations. Crucial to the development of GDP was
its role in the wartime effort.[10] A crucial role was played here by the US
Department of Commerce under Milton Gilbert where ideas from Kuznets were
embedded into governmental institutions.
 The history of the concept of GDP should be distinguished from the history of
changes in ways of estimating it. The value added by firms is relatively easy to
calculate from their accounts, but the value added by the public sector, by financial
industries, and by intangible asset creation is more complex. These activities are
increasingly important in developed economies, and the international conventions
governing their estimation and their inclusion or exclusion in GDP regularly
change in an attempt to keep up with industrial advances. In the words of one
academic economist "The actual number for GDP is therefore the product of a vast
patchwork of statistics and a complicated set of processes carried out on the raw
data to fit them to the conceptual framework."[11]

Determining gross domestic product (GDP)[edit]

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GDP can be determined in three ways, all of which should, in principle, give the
same result. They are the production (or output or value added) approach, the
income approach, or the expenditure approach.

The most direct of the three is the production approach, which sums the outputs of
every class of enterprise to arrive at the total. The expenditure approach works on
the principle that all of the product must be bought by somebody, therefore the
value of the total product must be equal to people's total expenditures in buying
things. The income approach works on the principle that the incomes of the
productive factors ("producers," colloquially) must be equal to the value of their
product, and determines GDP by finding the sum of all producers' incomes.[12]

Production approach[edit]

This approach mirrors the OECD definition given above.

1. Estimate the gross value of domestic output out of

the many various economic activities;
2. Determine the [intermediate consumption], i.e., the
cost of material, supplies and services used to
produce final goods or services.
3. Deduct intermediate consumption from gross value
to obtain the gross value added.

Gross value added = gross value of output – value of intermediate consumption.

Value of output = value of the total sales of goods and services plus value of
changes in the inventory.

The sum of the gross value added in the various economic activities is known as
"GDP at factor cost".

GDP at factor cost plus indirect taxes less subsidies on products = "GDP at
producer price".

For measuring output of domestic product, economic activities (i.e. industries) are
classified into various sectors. After classifying economic activities, the output of
each sector is calculated by any of the following two methods:

1. By multiplying the output of each sector by their

respective market price and adding them together
 2. By collecting data on gross sales and inventories
from the records of companies and adding them
together

The gross value of all sectors is then added to get the gross value added (GVA) at
factor cost. Subtracting each sector's intermediate consumption from gross output
gives the GVA at factor cost. Adding indirect tax minus subsidies in GVA at factor
cost gives the "GVA at producer prices".

Income approach[edit]

List of countries by GDP (PPP) per capita by 2014 International Monetary Fund.

Countries by 2015 GDP (nominal) per capita.[13]

> $64,000 $2,000 – 4,000

$32,000 – 64,000 $1,000 – 2,000
$16,000 – 32,000 $500 – 1,000
$8,000 – 16,000 < $500
$4,000 – 8,000 unavailable
U.S GDP computed on the income basis

The second way of estimating GDP is to use "the sum of primary incomes
distributed by resident producer units".[2]

If GDP is calculated this way it is sometimes called gross domestic income (GDI),
or GDP (I). GDI should provide the same amount as the expenditure method
described later. (By definition, GDI = GDP. In practice, however, measurement
errors will make the two figures slightly off when reported by national statistical
agencies.)

This method measures GDP by adding incomes that firms pay households for
factors of production they hire - wages for labour, interest for capital, rent for land
and profits for entrepreneurship.

The US "National Income and Expenditure Accounts" divide incomes into five
categories:

1. Wages, salaries, and supplementary labour income

2. Corporate profits
3. Interest and miscellaneous investment income
4. Farmers' incomes
5. Income from non-farm unincorporated businesses

These five income components sum to net domestic income at factor cost.
Two adjustments must be made to get GDP:

1. Indirect taxes minus subsidies are added to get from

factor cost to market prices.
2. Depreciation (or capital consumption allowance) is
added to get from net domestic product to gross
domestic product.

Total income can be subdivided according to various schemes, leading to various

formulae for GDP measured by the income approach. A common one is:

GDP = compensation of employees + gross

operating surplus + gross mixed income + taxes less
subsidies on production and imports
GDP = COE + GOS + GMI + TP & M – SP & M

 Compensation of employees (COE) measures

the total remuneration to employees for work
done. It includes wages and salaries, as well as
employer contributions to social security and
other such programs.
 Gross operating surplus (GOS) is the surplus
due to owners of incorporated businesses. Often
called profits, although only a subset of total
costs are subtracted from gross output to
calculate GOS.
 Gross mixed income (GMI) is the same measure
as GOS, but for unincorporated businesses. This
often includes most small businesses.
The sum of COE, GOS and GMI is called total
factor income; it is the income of all of the factors of
production in society. It measures the value of GDP
at factor (basic) prices. The difference between basic
prices and final prices (those used in the expenditure
calculation) is the total taxes and subsidies that the
government has levied or paid on that production. So
adding taxes less subsidies on production and
imports converts GDP at factor cost to GDP(I).

Total factor income is also sometimes expressed as:

Total factor income = employee compensation +

corporate profits + proprietor's income + rental
income + net interest[14]
Expenditure approach[edit]

The third way to estimate GDP is to calculate the

sum of the final uses of goods and services (all
uses except intermediate consumption) measured
in purchasers' prices.[2]

Market goods which are produced are purchased

by someone. In the case where a good is
produced and unsold, the standard accounting
convention is that the producer has bought the
good from themselves. Therefore, measuring the
total expenditure used to buy things is a way of
measuring production. This is known as the
expenditure method of calculating GDP.
 Components of GDP by expenditure[edit]

U.S. GDP computed on the expenditure basis.

GDP (Y) is the sum of consumption

(C), investment (I), government spending
(G) and net exports (X – M).

Y = C + I + G + (X − M)

Here is a description of each GDP

component:

 C (consumption) is normally the largest

GDP component in the economy,
consisting of private expenditures in the
economy (household final consumption
expenditure). These personal expenditures
fall under one of the following
categories: durable goods, nondurable
goods, and services. Examples include
food, rent, jewelry, gasoline, and medical
expenses, but not the purchase of new
housing.
 I (investment) includes, for instance,
business investment in equipment, but
does not include exchanges of existing
assets. Examples include construction of a
new mine, purchase of software, or
purchase of machinery and equipment for
a factory. Spending by households (not
government) on new houses is also
included in investment. In contrast to its
colloquial meaning, "investment" in GDP
does not mean purchases of financial
products. Buying financial products is
classed as 'saving', as opposed to
investment. This avoids double-counting:
if one buys shares in a company, and the
company uses the money received to buy
plant, equipment, etc., the amount will be
counted toward GDP when the company
spends the money on those things; to also
count it when one gives it to the company
would be to count two times an amount
that only corresponds to one group of
products. Buying bonds or stocks is a
swapping of deeds, a transfer of claims on
future production, not directly an
expenditure on products.
 G (government spending) is the sum
of government expenditures on final
goods and services. It includes salaries
of public servants, purchases of weapons
for the military and any investment
expenditure by a government. It does not
include any transfer payments, such
as social security or unemployment
benefits.
 X (exports) represents gross exports.
GDP captures the amount a country
produces, including goods and services
produced for other nations' consumption,
therefore exports are added.
 M (imports) represents gross imports.
Imports are subtracted since imported
goods will be included in the terms G, I,
or C, and must be deducted to avoid
counting foreign supply as domestic.

Note that C, G, and I are expenditures

on final goods and services; expenditures on
intermediate goods and services do not count.
(Intermediate goods and services are those
used by businesses to produce other goods
and services within the accounting year.[15])
According to the U.S. Bureau of Economic
Analysis, which is responsible for calculating
the national accounts in the United States, "In
general, the source data for the expenditures
components are considered more reliable than
those for the income components [see income
method, below]."[16]

GDP vs GNI[edit]

GDP can be contrasted with gross national

product (GNP) or, as it is now known, gross
national income (GNI). The difference is that
GDP defines its scope according to location,
while GNI defines its scope according to
ownership. In a global context, world GDP
and world GNI are, therefore, equivalent
terms.

GDP is product produced within a country's

borders; GNI is product produced by
enterprises owned by a country's citizens. The
two would be the same if all of the productive
enterprises in a country were owned by its
own citizens, and those citizens did not own
productive enterprises in any other countries.
In practice, however, foreign ownership
makes GDP and GNI non-identical.
Production within a country's borders, but by
an enterprise owned by somebody outside the
country, counts as part of its GDP but not its
GNI; on the other hand, production by an
enterprise located outside the country, but
owned by one of its citizens, counts as part of
its GNI but not its GDP.

For example, the GNI of the USA is the value

of output produced by American-owned
firms, regardless of where the firms are
located. Similarly, if a country becomes
increasingly in debt, and spends large
amounts of income servicing this debt this
will be reflected in a decreased GNI but not a
decreased GDP. Similarly, if a country sells
off its resources to entities outside their
country this will also be reflected over time in
decreased GNI, but not decreased GDP. This
would make the use of GDP more attractive
for politicians in countries with increasing
national debt and decreasing assets.

Gross national income (GNI) equals GDP

plus income receipts from the rest of the
world minus income payments to the rest of
the world.[17]

In 1991, the United States switched from

using GNP to using GDP as its primary
 measure of production.[18] The relationship
between United States GDP and GNP is
shown in table 1.7.5 of the National Income
and Product Accounts.[19]

International standards[edit]

The international standard for measuring

GDP is contained in the book System of
National Accounts (1993), which was
prepared by representatives of
the International Monetary Fund, European
Union, Organization for Economic Co-
operation and Development, United
Nations and World Bank. The publication is
normally referred to as SNA93 to distinguish
it from the previous edition published in 1968
(called SNA68) [20]

SNA93 provides a set of rules and procedures

for the measurement of national accounts.
The standards are designed to be flexible, to
allow for differences in local statistical needs
and conditions.

This section needs

expansion. You can
help by adding to
it. (August 2009)
National measurement[edit]

Within each country GDP is normally

measured by a national government statistical
agency, as private sector organizations
normally do not have access to the
information required (especially information
on expenditure and production by
governments).

Main article: National agencies responsible

for GDP measurement

Nominal GDP and adjustments to GDP[edit]

The raw GDP figure as given by the

equations above is called the nominal,
historical, or current, GDP. When one
compares GDP figures from one year to
another, it is desirable to compensate for
changes in the value of money – i.e., for the
effects of inflation or deflation. To make it
more meaningful for year-to-year
comparisons, it may be multiplied by the ratio
between the value of money in the year the
GDP was measured and the value of money
in a base year.

For example, suppose a country's GDP in

1990 was $100 million and its GDP in 2000
was $300 million. Suppose also that inflation
had halved the value of its currency over that
period. To meaningfully compare its GDP in
2000 to its GDP in 1990, we could multiply
the GDP in 2000 by one-half, to make it
relative to 1990 as a base year. The result
would be that the GDP in 2000 equals $300
million × one-half = $150 million, in 1990
monetary terms. We would see that the
country's GDP had realistically increased
50 percent over that period, not 200 percent,
as it might appear from the raw GDP data.
The GDP adjusted for changes in money
value in this way is called the real, or
constant, GDP.

The factor used to convert GDP from current

to constant values in this way is called
the GDP deflator. Unlike consumer price
index, which measures inflation or deflation
in the price of household consumer goods, the
GDP deflator measures changes in the prices
of all domestically produced goods and
services in an economy including investment
goods and government services, as well as
household consumption goods.[21]
 Constant-GDP figures allow us to calculate a
GDP growth rate, which indicates how much
a country's production has increased (or
decreased, if the growth rate is negative)
compared to the previous year.

Real GDP growth rate for year n = [(Real GDP in

year n) − (Real GDP in year n − 1)] / (Real GDP in
year n − 1)

Another thing that it may be desirable to

account for is population growth. If a
country's GDP doubled over a certain
period, but its population tripled, the
increase in GDP may not mean that the
standard of living increased for the
country's residents; the average person in
the country is producing less than they
were before. Per-capita GDP is a measure
to account for population growth.

Cross-border comparison and purchasing

power parity[edit]

The level of GDP in different countries

may be compared by converting their
value in national currency according
to either the current currency exchange
rate, or the purchasing power parity
exchange rate.

 Current currency exchange rate is

the exchange rate in the
international foreign exchange market.
 Purchasing power parity exchange
rate is the exchange rate based on
the purchasing power parity (PPP) of a
currency relative to a selected standard
(usually the United States dollar). This
is a comparative (and theoretical)
exchange rate, the only way to directly
realize this rate is to sell an
entire CPI basket in one country,
convert the cash at the currency market
rate & then rebuy that same basket of
goods in the other country (with the
converted cash). Going from country
to country, the distribution of prices
within the basket will vary; typically,
non-tradable purchases will consume a
greater proportion of the basket's total
cost in the higher GDP country, per
the Balassa-Samuelson effect.
The ranking of countries may differ
significantly based on which method is
used.

 The current exchange rate

method converts the value of goods
and services using global
currency exchange rates. The method
can offer better indications of a
country's international purchasing
power. For instance, if 10% of GDP is
being spent on buying hi-tech
foreign arms, the number of weapons
purchased is entirely governed
by current exchange rates, since arms
are a traded product bought on the
international market. There is no
meaningful 'local' price distinct from
the international price for high
technology goods. The PPP method of
GDP conversion is more relevant to
non-traded goods and services. In the
above example if hi-tech weapons are
to be produced internally their amount
will be governed by GDP(PPP) rather
than nominal GDP.
There is a clear pattern of the purchasing
power parity method decreasing the
disparity in GDP between high and low
income (GDP) countries, as compared to
the current exchange rate method. This
finding is called the Penn effect.

For more information, see Measures of

national income and output.

Standard of living and GDP: Wealth

distribution and externalities[edit]

GDP per capita is often used as an

indicator of living standards.[22]

The major advantage of GDP per capita as

an indicator of standard of living is that it
is measured frequently, widely, and
consistently. It is measured frequently in
that most countries provide information on
GDP on a quarterly basis, allowing trends
to be seen quickly. It is measured widely
in that some measure of GDP is available
for almost every country in the world,
allowing inter-country comparisons. It is
measured consistently in that the technical
definition of GDP is relatively consistent
among countries.
GDP does not include several factors that
influence the standard of living. In
particular, it fails to account for:

 Externalities – Economic growth may

entail an increase in negative
externalities that are not directly
measured in GDP.[23][24] Increased
industrial output might grow GDP, but
any pollution is not counted.[25]
 Non-market transactions– GDP
excludes activities that are not
provided through the market, such as
household production, bartering of
goods and services, and volunteer or
unpaid services.
 Non-monetary economy– GDP omits
economies where no money comes
into play at all, resulting in inaccurate
or abnormally low GDP figures. For
example, in countries with major
business transactions occurring
informally, portions of local economy
are not easily
registered. Bartering may be more
prominent than the use of money, even
extending to services.[24]
 Quality improvements and inclusion
of new products– by not fully
adjusting for quality improvements
and new products, GDP understates
true economic growth. For instance,
although computers today are less
expensive and more powerful than
computers from the past, GDP treats
them as the same products by only
accounting for the monetary value.
The introduction of new products is
also difficult to measure accurately and
is not reflected in GDP despite the fact
that it may increase the standard of
living. For example, even the richest
person in 1900 could not purchase
standard products, such as antibiotics
and cell phones, that an average
consumer can buy today, since such
modern conveniences did not exist
then.
 Sustainability of growth– GDP is a
measurement of economic historic
activity and is not necessarily a
projection.
 Wealth distribution – GDP does not
account for variances in incomes of
 various demographic groups.
See income inequality metrics for
discussion of a variety of inequality-
based economic measures.[24]

It can be argued that GDP per capita as an

indicator standard of living is correlated
with these factors, capturing them
indirectly.[22][26] As a result, GDP per
capita as a standard of living is a
continued usage because most people have
a fairly accurate idea of what it is and
know it is tough to come up with
quantitative measures for such constructs
as happiness, quality of life, and well-
being.[22]

Limitations and criticisms[edit]

This section needs

expansion. You can
help by adding to
it. (February 2012)

Limitations at introduction[edit]

Simon Kuznets, the economist who

developed the first comprehensive set of
measures of national income, stated in his
first report to the US Congress in 1934, in
a section titled "Uses and Abuses of
National Income Measurements":[8]

The valuable capacity of the human mind

to simplify a complex situation in a
compact characterization becomes
dangerous when not controlled in terms of
definitely stated criteria. With quantitative
measurements especially, the definiteness
of the result suggests, often misleadingly,
a precision and simplicity in the outlines
of the object measured. Measurements of
national income are subject to this type of
illusion and resulting abuse, especially
since they deal with matters that are the
center of conflict of opposing social
groups where the effectiveness of an
argument is often contingent upon
oversimplification. [...]

All these qualifications upon estimates of

national income as an index of
productivity are just as important when
income measurements are interpreted
from the point of view of economic
welfare. But in the latter case additional
difficulties will be suggested to anyone
who wants to penetrate below the surface
of total figures and market values.
Economic welfare cannot be adequately
measured unless the personal distribution
of income is known. And no income
measurement undertakes to estimate the
reverse side of income, that is, the
intensity and unpleasantness of effort
going into the earning of income. The
welfare of a nation can, therefore, scarcely
be inferred from a measurement of
national income as defined above.

In 1962, Kuznets stated:[27]

Distinctions must be kept in mind between

quantity and quality of growth, between
costs and returns, and between the short
and long run. Goals for more growth
should specify more growth of what and
for what.

Further criticisms[edit]

Ever since the development of GDP,

multiple observers have pointed out
limitations of using GDP as the
overarching measure of economic and
social progress.
Many environmentalists argue that GDP is
a poor measure of social progress because
it does not take into account harm to
the environment.[28][29]

Although a high or rising level of GDP is

often associated with increased economic
and social progress within a country, a
number of scholars have pointed out that
this does not necessarily play out in many
instances. For example, Jean
Drèze and Amartya Sen have pointed out
that an increase in GDP or in GDP growth
does not necessarily lead to a higher
standard of living, particularly in areas
such as healthcare and
education.[30] Another important area that
does not necessarily improve along with
GDP is political liberty, which is most
notable in China, where GDP growth is
strong yet political liberties are heavily
restricted.[31]

GDP does not account for the distribution

of income among the residents of a
country, because GDP is merely an
aggregate measure. An economy may be
highly developed or growing rapidly, but
also contain a wide gap between the rich
and the poor in a society. These
inequalities often occur on the lines of
race, ethnicity, gender, religion, or other
minority status within countries. This can
lead to misleading characterizations of
economic well-being if the income
distribution is heavily skewed toward the
high end, as the poorer residents will not
directly benefit from the overall level of
wealth and income generated in their
country. Even GDP per capita measures
may have the same downside if inequality
is high. For example, South Africa during
apartheid ranked high in terms of GDP per
capita, but the benefits of this immense
wealth and income were not shared
equally among the country.[citation needed]

GDP does not take into account the value

of household and other unpaid work.
Some, including Martha Nussbaum, argue
that this value should be included in
measuring GDP, as household labor is
largely a substitute for goods and services
that would otherwise be purchased for
value.[32] Even under conservative
estimates, the value of unpaid labor in
Australia has been calculated to be over
50% of the country's GDP.[33] A later
study analyzed this value in other
countries, with results ranging from a low
of about 15% in Canada (using
conservative estimates) to high of nearly
70% in the United Kingdom (using more
liberal estimates). For the United States,
the value was estimated to be between
about 20% on the low end to nearly 50%
on the high end, depending on the
methodology being used.[34] Because
many public policies are shaped by GDP
calculations and by the related field
of national accounts,[35] the non-inclusion
of unpaid work in calculating GDP can
create distortions in public policy, and
some economists have advocated for
changes in the way public policies are
formed and implemented.[36]

The UK's Natural Capital

Committee highlighted the shortcomings
of GDP in its advice to the UK
Government in 2013, pointing out that
GDP "focuses on flows, not stocks. As a
result, an economy can run down its assets
yet, at the same time, record high levels of
GDP growth, until a point is reached
where the depleted assets act as a check
on future growth". They then went on to
say that "it is apparent that the recorded
GDP growth rate overstates the
sustainable growth rate. Broader measures
of wellbeing and wealth are needed for
this and there is a danger that short-term
decisions based solely on what is currently
measured by national accounts may prove
to be costly in the long-term".

Proposals to overcome GDP

limitations[edit]

In response to these and other limitations

of using GDP, alternative approaches have
emerged.

 In the 1980s, Amartya Sen and Martha

Nussbaum developed the capability
approach, which focuses on the
functional capabilities enjoyed by
people within a country, rather than the
aggregate wealth held within a
country. These capabilities consist of
 the functions that a person is able to
achieve.[37]
 In 1990 Mahbub ul Haq, a Pakistani
Economist at the United Nations,
introduced the Human Development
Index (HDI). The HDI is a composite
index of life expectancy at birth, adult
literacy rate and standard of living
measured as a logarithmic function of
GDP, adjusted to purchasing power
parity.
 In 1989, John B. Cobb and Herman
Daly introduced Index of Sustainable
Economic Welfare (ISEW) by taking
into account various other factors such
as consumption of nonrenewable
resources and degradation of the
environment. The new formula
deducted from GDP (personal
consumption + public non-defensive
expenditures - private defensive
expenditures + capital formation +
services from domestic labour - costs
of environmental degradation -
depreciation of natural capital)
 In 2005, Med Jones, an American
Economist, at the International
 Institute of Management, introduced
the first secular Gross National
Happiness Index a.k.a Gross National
Well-being framework and Index to
complement GDP economics with
additional seven dimensions, including
environment, education, and
government, work, social and health
(mental and physical) indicators. The
proposal was inspired by the King of
Bhutan's GNH philosophy.[38][39][40]
 In 2009 the European Union released a
communication titled GDP and
beyond: Measuring progress in a
changing world[41] that identified five
actions to improve the indicators of
progress in ways that make it more
responsive to the concerns of its
citizens: Introduced a proposal to
complementing GDP with
environmental and social indicators
 In 2009 Professors Joseph
Stiglitz, Amartya Sen, and Jean-Paul
Fitoussi at the Commission on the
Measurement of Economic
Performance and Social
Progress (CMEPSP), formed by
 French President, Nicolas
Sarkozy published a proposal to
overcome the limitation of GDP
economics to expand the focus to well-
being economics with wellbeing
framework consisting of health,
environment, work, physical safety,
economic safety, political freedom.
 In 2012, the Karma Ura of the Center
for Bhutan Studies published Bhutan
Local GNH Index contributors to
happiness—physical, mental and
spiritual health; time-balance; social
and community vitality; cultural
vitality; education; living standards;
good governance; and ecological
vitality. The Bhutan GNH Index.[42]
 In 2013 OECD Better Life Index was
published by the OECD. The
dimensions of the index included
health, economic, workplace, income,
jobs, housing, civic engagement, life
satisfaction
 In 2013 professors John
Helliwell, Richard Layard and Jeffrey
Sachs published World Happiness
Report and proposed to measure other
 wellbeing indicators in addition to
GDP. the evaluation framework
included GDP per capita, Gini (income
inequality), life satisfaction, health,
freedom of life choices, trust and
absence of corruption.

Lists of countries by their GDP[edit]

 Lists of countries by GDP

 List of countries by GDP (nominal),
(per capita)
 List of continents by GDP (nominal)
 List of countries by GDP (PPP), (per
capita), (per hour)
 List of countries by GDP (real) growth
rate, (per capita)
 List of countries by GDP sector
composition
 List of IMF ranked countries by past
and projected GDP (PPP), (per capita),
(nominal)

See also[edit]

 Annual average GDP growth

 Capability approach
 Chained volume series
 Circular flow of income
 Economic growth
 GDP density
 Gross output
 Gross regional product
 Gross regional domestic product
 Gross state product
 Gross value added
 Gross world product
 Intermediate consumption
 Inventory investment
 List of countries by average wage
 List of countries by household income
 List of countries by GDP (nominal)
 List of countries by GDP (nominal)
per capita
 List of countries by GDP (PPP)
 List of countries by GDP (PPP) per
capita
 List of economic reports by U.S.
government agencies
 Misery index (economics)
 National average salary
 Potential output
 Production (economics)
 Productivism
 Real gross domestic product
 Gross National Happiness

Notes and references[edit]

1. ^ Jump up to:a b "GDP (Official

Exchange Rate)" (PDF). World
Bank. Retrieved August 24, 2015.
2. ^ Jump up to:a b c "OECD".
Retrieved 14 August 2014.
3. Jump up^ Callen, Tim. "Gross
Domestic Product: An Economy's
All". IMF. Retrieved 3 June 2016.
4. Jump up^ Dawson, Graham
(2006). Economics and Economic
Change. FT / Prentice Hall.
p. 205. ISBN 9780273693512.
5. Jump up^ Lepenies, Philipp
(2016-04-26). The Power of a
Single Number: A Political History
of GDP. New York: Columbia
University
Press. ISBN 9780231175104.
6. Jump up^ "Petty impressive". The
Economist. Retrieved August
1, 2015.
7. Jump up^ Coyle, Diane. "Warfare
and the Invention of GDP". The
Globalist. Retrieved August 1,2015.
8. ^ Jump up to:a b Congress
commissioned Kuznets to create a
system that would measure the
nation's productivity in order to
better understand how to tackle
the Great Depression.Simon
Kuznets, 1934. "National Income,
1929–1932". 73rd US Congress, 2d
session, Senate document no. 124,
page 5-7 Simon Kuznets, 1934.
"National Income, 1929–1932".
73rd US Congress, 2d session,
Senate document no. 124, page 5-7
Simon Kuznets, 1934. "National
Income, 1929–1932". 73rd US
Congress, 2d session, Senate
document no. 124, page 5-
7. https://fraser.stlouisfed.org/scrib
d/?title_id=971&filepath=/docs/pu
blications/natincome_1934/193401
04_nationalinc.pdf
9. Jump up^ Dickinson,
Elizabeth. "GDP: a brief history".
 ForeignPolicy.com. Retrieved 25
April 2012.
10.Jump up^ Lepenies, Philipp (April
2016). The Power of a Single
Number: A Political History of
GDP. Columbia University
Press. ISBN 9780231541435.
11.Jump up^ Coyle, Diane
(2014). GDP: A Brief but
Affectionate History. Princeton
University Press.
p. 6. ISBN 9780691156798.
12.Jump up^ World Bank, Statistical
Manual >> National Accounts
>> GDP–final output, retrieved
October 2009.
"User's guide: Background
information on GDP and GDP
deflator". HM Treasury.
"Measuring the Economy: A
Primer on GDP and the National
Income and Product
Accounts" (PDF). Bureau of
Economic Analysis.
13.Jump up^ Based on the IMF data.
If no data was available for a
 country from IMF, I used
WorldBank data.
14.Jump up^ United States Bureau of
Economic Analysis, "A guide to the
National Income and Product
Accounts of the United
States" (PDF)., page 5; retrieved
November 2009. Another term,
"business current transfer
payments", may be added. Also,
the document indicates that the
capital consumption adjustment
(CCAdj) and the inventory
valuation adjustment (IVA) are
applied to the proprietor's income
and corporate profits terms; and
CCAdj is applied to rental income.
15.Jump up^ Thayer Watkins, San
José State University Department
of Economics, "Gross Domestic
Product from the Transactions
Table for an Economy",
commentary to first table, "
Transactions Table for an
Economy". (Page retrieved
November 2009.)
16.Jump up^ Concepts and Methods
of the United States National
Income and Product Accounts,
chap. 2.
17.Jump up^ Lequiller, François;
Derek Blades
(2006). Understanding National
Accounts. OECD. p. 18. ISBN 978-
92-64-02566-0. To convert GDP
into GNI, it is necessary to add the
income received by resident units
from abroad and deduct the income
created by production in the
country but transferred to units
residing abroad.
18.Jump up^ United States, Bureau
of Economic Analysis,
Glossary, "GDP". Retrieved
November 2009.
19.Jump up^ "U.S. Department of
Commerce. Bureau of Economic
Analysis". Bea.gov. 2009-10-21.
Retrieved 2010-07-31.
20.Jump up^ "National Accounts".
Central Bureau of Statistics.
 Archived from the original on
2011-04-16. Retrieved 2011-06-29.
21.Jump up^ HM
Treasury, Background information
on GDP and GDP deflator
Some of the complications
involved in comparing national
accounts from different years are
explained in this World
Bank document.
22.^ Jump up to:a b c "How Do We
Measure Standard of
Living?" (PDF). The Federal
Reserve Bank of Boston.
23.Jump up^ Mankiw, N.G.; Taylor,
M.P. (2011). Economics (2nd ed.,
revised ed.). Andover: Cengage
Learning.
24.^ Jump up
to:a b c "Macroeconomics - GDP
and Welfare". Retrieved 2015-02-
21.
25.Jump
up^ http://www2.econ.iastate.edu/c
lasses/econ355/choi/gdp.htm
26.Jump up^ "How Real GDP per
Capita Affects the Standard of
Living". Study.com.
27.Jump up^ Simon Kuznets. "How
To Judge Quality". The New
Republic, October 20, 1962
28.Jump up^ The Virtues of Ignoring
GDP http://www.thebrokeronline.e
u/Articles/The-virtues-of-ignoring-
GDP
29.Jump up^ The Rise and Fall of
G.D.P. https://www.nytimes.com/2
010/05/16/magazine/16GDP-
t.html?pagewanted=all
30.Jump up^ Drèze, Jean; Sen,
Amartya (2013). An uncertain
glory India and its contradictions.
Princeton: Princeton University
Press. ISBN 9781400848775.
31.Jump up^ "China Country Report
Freedom in the World
2012". freedomhouse.org.
32.Jump up^ Nussbaum, Martha C.
(2013). Creating capabilities : the
human development approach.
Cambridge, Mass.: Belknap Press
 of Harvard University
Press. ISBN 0674072359.
33.Jump up^ Blades, François
Lequiller, Derek
(2006). Understanding national
accounts (Reprint. ed.). Paris:
OECD. p. 112. ISBN 978-92-64-
02566-0.
34.Jump up^ "Incorporating
Estimates of Household Production
of Non-Market Services into
International Comparisons of
Material Well-Being".
35.Jump up^ "National Income
Accounting and Public
Policy" (PDF).
36.Jump up^ "National Accounts: A
Practical Introduction" (PDF).
37.Jump up^ Shahani, Severine
Deneulin ; Lila (2009). An
Introduction to the Human
Development and Capability :
Approach (1. ed.). London:
Earthscan
Ltd. ISBN 9781844078066.
 38.Jump up^ "Gross National
Happiness (GNH) - A New
Socioeconomic Development Policy
Framework - A Policy White Paper
- The American Pursuit of
Unhappiness - Med Jones, IIM".
Iim-edu.org. 10 January 2005.
39.Jump up^ Happiness Ministry in
Dubai
http://www.thenational.ae/opinion/
comment/the-happiness-portfolio-
is-no-laughing-matter Happiness
Ministry in
Dubai Check |url= value
(help).Missing or
empty |title= (help)
40.Jump up^ "Harvard Kennedy
School Report to US Congressman
21st Century GDP: National
Indicators for a New Era" (PDF).
41.Jump up^ "GDP and beyond:
Measuring progress in a changing
world". European Union. 2009.
Retrieved 2012-02-26.
42.Jump up^ "Bhutan GNH Index"

Further reading[edit]
  Coyle, Diane (2014). GDP: A Brief but
Affectionate History. Princeton,
NJ: Princeton University
Press. ISBN 978-0-691-15679-8.
 Australian Bureau for
Statistics, Australian National
Accounts: Concepts, Sources and
Methods, 2000. Retrieved November
2009. In depth explanations of how
GDP and other national accounts items
are determined.
 United States Department of
Commerce, Bureau of Economic
Analysis, "Concepts and Methods of
the United States National Income and
Product Accounts" (PDF).. Retrieved
November 2009. In depth explanations
of how GDP and other national
accounts items are determined.

External links[edit]

Wikimedia
Commons has
media related
to Gross
domestic
product.

Wikiquote has
quotations
related
to: Gross
Domestic
Product

Global[edit]

 Australian Bureau of Statistics Manual

on GDP measurement
 GDP-indexed bonds
 OECD GDP chart
 UN Statistical Databases
 World Development Indicators
(WDI) at Worldbank.org
 World GDP Chart (since 1960)
 Gross National Happiness USA United
States based non-profit working to
increase collective well-being by
changing how we measure progress
and success.
Data[edit]

 Bureau of Economic Analysis: Official

United States GDP data
 Historicalstatistics.org: Links to
historical statistics on GDP for
different countries and regions,
maintained by the Department of
Economic History at Stockholm
University.
 Quandl - GDP by country -
downloadable in CSV, Excel, JSON or
XML
 Historical US GDP (yearly data),
1790–present, maintained by Samuel
H. Williamson and Lawrence H.
Officer, both professors of economics
at the University of Illinois at Chicago.
 Historical US GDP (quarterly data),
1947–present
 Google – public data: GDP and
Personal Income of the U.S. (annual):
Nominal Gross Domestic Product
 The Maddison Project of the
Groningen Growth and Development
Centre at the University of Groningen,
the Netherlands. This project continues
and extends the work of Angus
Maddison in collating all the available,
credible data estimating GDP for
 different countries around the world.
This includes data for some countries
for over 2,000 years back to 1 CE and
for essentially all countries since 1950.
Articles and books[edit]

Library resources about

Gross domestic product

 Resources in your library

 Gross Domestic Product: An

Economy’s All, International
Monetary Fund.
 Stiglitz JE, Sen A, Fitoussi J-P.
Mismeasuring our Lives: Why GDP
Doesn't Add Up, New Press, New
York, 2010
 What's wrong with the GDP?
 Whether output and CPI inflation are
mismeasured, by Nouriel
Roubini and David Backus, in
Lectures in Macroeconomics
 Rodney Edvinsson, "Growth,
Accumulation, Crisis: With New
 Macroeconomic Data for Sweden
1800–2000".
 Clifford Cobb, Ted Halstead and
Jonathan Rowe. "If the GDP is up,
why is America down?" The Atlantic
Monthly, vol. 276, no. 4, October
1995, pages 59–78
 Jerorn C.J.M. van den Bergh,
"Abolishing GDP"
 GDP and GNI in OECD Observer
No246-247, Dec 2004-Jan 2005
 Progress, what progress? in OECD
Observer No272 March 2009

ountries by GDP rankings

classification of countries

 GND: 4146775-9
 NDL: 00871221
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