Economia

GROSS DOMESTIC PRODUCT

1. Definitions

* Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period. It is often considered an indicator of a country's standard of living.
* Gross Domestic Product. The total market value of all final goods and services produced in a country in a given year, equal to totalconsumer, investment and government spending, plus the value of exports, minus the value of imports.
* The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as acomparison to the previous quarter or year.

2. How is it built?

* GDP (Y) is a 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 (household final consumption expenditure)in the economy. These personal expenditures fall under one of the following categories: durable goods, non-durable goods, and services. Examples include food, rent, jewelry, gasoline, and medical expenses but does not include the purchase of new housing.
* I (investment) includes business investment in equipments for example and does not include exchanges of existing assets. Examples includeconstruction 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 avoidsdouble-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 claimson 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, purchase 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.

The components of GrossDomestic Product (GDP) tell you what the U.S. is good at producing.
Over 70% of what the U.S. produces is for personal consumption - more than $10 trillion of the $14.6 trillion 2010 GDP. That's because the U.S. has a lot of people within its borders, so U.S. companies have become very good at knowing what consumers want.
Nearly half (47%) of GDP is services, not products. These include everythingfrom financial services to health care.
Goods or products are nearly one-fourth of the economy. These are further divided into two sub-categories. Non-durable goods are 16% of GDP. The three largest components of non-durable goods are food, clothing and fuel. Durable Goods, such as autos and furniture, is the smallest category, at only 7% of GDP.
Business investment, such as software, business...