Gdp
The gross domestic product (GDP) is an economic indicator that widely used measure wealth created in a country and for a given year. It is defined as the total value of domestic production of goods and services in a given country during a given year by the agents residing within the country. It is also the measure of income from production in a given country. It is sometimes called annual economic output or just output.
GDP is an aggregate of national accounts , obtained by summing the quantities measured by categories of economic agents ( households , businesses , public administrations ). To avoid the same output more than once in the calculation, are not part of GDP that the goods and services end (that is to say, value added, or the consumption of goods and services and capital goods ), the intermediate goods production are excluded. For example, the flour used to make bread which is excluded (as being a consumer through the calculation of the wealth produced by the baker).
GDP is often used as an indicator of economic activity between countries, the GDP per capita , meanwhile, serves as an indicator of living standards by giving an indicative value of purchasing power. The change in GDP is the most widely used indicator for measuring economic growth.
Defenders of the Environment and Sustainable Development criticized the GDP as a measure of wealth, since the economic growth destroys the natural resource base , and that GDP does not account for this destruction Origin GDP has been invented for national accounts at the end of World War II, to analyze the economies were at their lowest. Definition given by INSEE The aggregate representing the final result of the production activity of resident producer units may be defined in three ways: GDP is by definition a book value end of the income statement (revenues and costs) and not the balance sheet (assets / liabilities). It measures only the flow of production, not a stock of capital or debt (as Adjusted Net Savings from the World Bank). He does not consider the flow depletion (which would net an indicator and not gross), the latter requiring imputations involving arbitrary conventions and data that are often not available continuously for periods as long. GDP is a measure of the value of all goods and services produced in the territory of a country during a given period (usually one year, sometimes a quarter), regardless of the nationality of producers (in this he differs from the GNP ). Income from assets outside are not included in GDP, but they are added to GDP to form the gross national income. GDP can be divided three ways (see an example , for France): GDP is the sum of value added of the domestic economy, calculated at market prices, to which is added by the value recovered by the state ( value added tax and customs duties ); GDP is the sum of final uses of domestic goods and services, that is to say, the final consumption effective (CF), the investment ( Gross Fixed Capital Formation (GFCF) in the statistical jargon) and changes in stocks (VS). This definition is derived from the accounting balance between the resources of the economy (GDP) and jobs that are made of these resources. For example, in 2004 the EU-25 , 59% of GDP was spent on final consumption expenditure of households, 21% of final consumption expenditure of government , and 19% to the investment . GDP is the sum of gross institutional sector: compensation of employees (HR), taxes on production and imports less subsidies (T), EBITDA (EBITDA), net of income with the outside (RX). Logically, there are three methods to calculate the GDP of a country or region: the production, by expenditure and income. For practical reasons, it mainly uses the first method. In this technique, we add any values added , based on results provided by the companies and the government. After rising in 2007 to 3.7%, following the 2008 crisis , from +2.0 in 2008, world GDP fell by -1.1% in 2009 (slightly more than expected by the IMF , with significant differences, the rich countries face in 2009 before falling by 3.0% to 3.5% of GDP (according to estimates announced by the IMF). It's the largest drop strong in the post-war, despite the importance of public efforts noted by the IMF. The GDP identifies both market production and non-market production, composed exclusively of services. In France, GDP non-profit is almost exclusively of government (security, justice, health, education). By convention, it is valued at production cost (see Non-commercial services ). A short-term increase in GDP is expanding, while a decline indicates an economic recession. The long-term increase in GDP per capita is an indicator of economic growth. The real GDP or volume of GDP is the value taking into account price changes, that is to say the inflation. Real GDP has the advantage of showing the variations in the rise and decline in the volume (quantity) of production of goods and services. This was used when measuring GDP growth. Indeed, one can not tell by looking at nominal GDP if the increase in the indicator comes from higher prices, higher production or to what extent these two variations are combined. Let P i, t the price of property i in period t (eg one year) and Q i, t is the quantity produced of good i during period t, then: Real GDP is constituted by the value of goods i produced during period t measured at constant prices (base year denoted t 0), namely: The GDP deflator is equal to the ratio of nominal GDP and real. GDP per capita or gross domestic product per capita (or per capita) is the value of GDP divided by the number of inhabitants of a country. It is more effective than GDP to measure the development of a country, however, it is only average so it does not account for income inequality and wealth within a population. This indicator is not equal to the per capita income. It is a good indicator of productivity economy, but it imperfectly reflects the level of welfare of the population or the degree of success of a country's development. It does not show what is the distribution of income of a country among its inhabitants. Such as GDP, it does not reflect the harm caused to the environment and natural resources by the processes of production , and ignores the work without pay which may be made within households or communities, or the production put to the account of the underground economy. GDP per capita is constructed as an indicator of quality of life (the latter, more subjective, is difficult to measure, although some indicators such as the Human Development Index (HDI) aspire to be assessed). In general, a country is considered " developed "when it exceeds U.S. 20,000 GDP per capita and per year, around 2006. We can compare the GDP of several countries, expressed by their motto national, according to two methods: PPP comparisons are more significant than current exchange rates when countries are very different, due to the mechanical weakness of currencies of poor countries. They also help overcome the sometimes abrupt changes in exchange rates. They often encounter the term in its English name GDP GDP to Gross Domestic Product. By definition, GDP is an indicator of flow and ignores the value estimated assets and liabilities (the Heritage ) public and private. It does not measure the externalities are positive or negative change this value and thus contribute to a gain or loss of means. For Dominique Meda , it has three major limitations: it ignores time and activities essential to the development of society as time with family, time for political activities, domestic time and it does is not affected by inequalities in participation in the production or consumption, it does not take into account the damage made to the natural heritage. GDP reflects the natural resources (energy, raw materials ) consumed in the process of production in national accounts by the inputs. However, national accounts do not distinguish, in the intermediate consumption, renewable resources and nonrenewable resources (that is, those falling in the use of income and those who belong to a destruction of capital ), or recycled products purchased from other products. Jean-Marc Jancovici criticizes the fact that GDP does not measure the consumption of natural resource or to anticipate in advance the environmental risks . Regarding the sector of services (the tertiary sector in national accounts ), which represents about 70% of GDP in developed countries , Jean Gadrey believes that to build an ecological economy of services, we must first look to the complete life cycle assessments these activities. It appears that the intangibility of services is sometimes assumed a myth. It would be necessary to internalize the externalities of environmental activities . In the case of production pollution, followed by a clean-up process, the GDP accounts for two productions , which partially cancel. What Leopold Kohr called "the standard aspirin: increasing the GDP we catch migraines, then we produce an aspirin to relieve headaches and are pleased that this additional increase in the GDP has increased our standard of living" . GDP is neutral vis--vis a technical progress that is consistent with the design of specific industrial processes, use of recycled materials , and generally anticipating risk environment. GDP does not send any alarm signal on the degradation of the environment. Thus, GDP does not measure the impact of production on natural capital. The economic growth measured by GDP does not account much respect or not the principles of sustainable development or its impact on the environment. GDP was nevertheless selected by the INSEE among the eleven indicators of sustainable development adopted in the context of national sustainable development strategy French . Some authors underscore the limits of economic growth as a measure of the health of a country or economy, or dispute the merits or even the physical possibility to perpetuate economic growth such defined by the change in GDP. Dominique Meda has proposed since 1999 in what is wealth? to use other indicators than GDP. Viveret Patrick also believes that we must reconsider the instruments measure of wealth . Elisabeth Laville considers it important to challenge the institutional acceptance of GDP as the main indicator of economic performance, which is a major obstacle for enterprises and other economic actors in the transition from traditional financial approach approach to triple bottom line sustainable development. She thinks that France could make proposals in this direction . GDP does not take into account self-production (or consumption), that is to say, the wealth produced and consumed within the household itself: for example, a fruit orchard that are eaten, or domestic production ( domestic activities of housewives , for example). Services produced by households for their own use, add 35% to the national wealth in France around 2009 . Therefore it is not robust to changes in lifestyle, particularly the transition from self-consumption to commodity consumption . The moonlighting is poorly measured, and its added value is estimated and included in GDP. The volunteer , who is a non-commercial service , is very poorly measured (the value being recorded primarily from personnel costs, which are inherently meaningless in volunteer activities). It is difficult to quantify the actual contribution of non-market services and public administration in economic wealth, the practice is to simply integrate their costs to GDP in the absence of goods evidenced by billings. GDP is not constructed as an indicator of well-being , of happiness , or quality of life. Thus, some consumers are inflating their GDP, while obviously they do not reflect an improvement in the happiness of the people . However, below a certain threshold (about 15,000 dollars per year per person), the increase in GDP per capita is strongly correlated with increased well-being of the population, according to a study published in 2001 by Princeton University . In the case of a natural disaster (hurricane, earthquake), GDP does not record the destruction of assets (houses, roads ...) and indirectly at the level of impact on production (less than loss of assets). In contrast, GDP takes into account the reconstructions that follow the disaster (often funded by national or international aid). Consider this consideration as a defect is questionable: the ability to cope with natural disasters is much economic wealth, it seems natural to account (as well as health for example). Creating activities, even socially useless, however, may be beneficial in the use of factors causing non-employees and an increase in aggregate demand. Thus, John Maynard Keynes called as a joke to employ the unemployed to dig holes and other unemployed to replace corks . Frederic Bastiat described a further limitation of the extent of his wealth with the broken window fallacy published in 1850. Taking the example of a window, he showed that the impoverished society of the value of the glass when it was broken. He concluded, "society loses the value of items destroyed unnecessarily," or "destruction is not profit. "In taking over these thoughts Gadrey John and Florence Jany-Catrice write so graphically that "if a country paid them 10% of people to destroy property, make holes in roads, damaging cars, etc.., and 10% to repair, closing holes, etc.. he would have the same GDP a country where 20% of these jobs (including the effects on welfare cancel) would be spent to improve life expectancy in good health, education levels and participation in cultural activities and leisure . " For all these reasons, the emphasis is on comparisons between GDP (between countries or between periods), rather than its absolute value. Other indicators Economists had thought to measure a Green GDP , where GDP is subtracted from the conventional value of stock declines of natural resources. Such an accounting method would better know whether an economic activity increases or decreases the national wealth when it uses natural resources . However, economists believe it would be very difficult to accurately measure this indicator. A measure of regional GDP, or " gross urban product , "is sometimes presented. Its use is criticized because the trade (imports and exports) with other regions within countries are not measured. The calculation is then done with the productive approach (sum of value added). This indicator does while production in the area, not wealth, because a residential area where production is low will have a very low local GDP, even if the income of residents is high. The allocation of EU structural funds, based on regional GDP, sees so some residential areas with low GDP per capita but little affected (low unemployment, residents working in an adjacent region) take the funds from industrial regions with the highest GDP but the real wealth lower (unemployment, precarious employment ...) Human development Like other economic indicators , GDP is not intended to measure the level of human development countries, it measures only the economic development. The Human Development Index (HDI), based on the work of Amartya Sen , has been created to try to understand the welfare office. The data may vary (slightly) the modes of calculating the IMF , World Bank, OECD, CIA .... The GDP of the EU , if it was counted as a single state (single market, trade legislation and almost one single currency, so almost any country in the economic sense) would be the first in the world. List of ten largest world economies in 2010, according to the International Monetary Fund , ranked in nominal and in purchasing power parity : GDP per capita of some countries in 2010: GDP in France According to Insee, the GDP growth in France since 1975 has stabilized around 2.3% annually (see also all data on the site of the INSEE ). According to Jean Gadrey, member of the Committee Stiglitz (see below), the annual rate has a downward trend instead of 0.082% per annum from 6 to 1.5% between 1950 and 2008 . The Commission on the Measurement of Economic Performance and Social Progress, called "Commission Stiglitz met between April 2008 and September 2009. It aimed to develop a "reflection on ways to avoid an overly quantitative accounting too far from our collective performance" and to develop new indicators of wealth. A first version of its findings has been put online in June 2009. At the same time, the Forum for other indicators of wealth (FAIR) has released a first note highlighting the contributions of the first chapter of this report and at the same time criticizing both the method of working "very opaque" to the Commission that the limits of its proposals . Indicators Reflections Country List Other Decompositions and GDP calculations
Decompositions
For the production
By spending
By income
Calculations of GDP
World GDP
World GDP would have been under the IMF of 57 937 billion dollars in 2009 against about 68 000 billion dollars in 2008. GDP market and non-profit
Changes in GDP
Measures of volume and value
GDP per capita
International Comparisons
Limitations of GDP and defects in its determination
GDP and sustainable development
Productions were not taken into account
GDP and welfare
Other Limits
Green GDP
Urban regional GDP or GDP
List of countries by GDP
Rank Country Nominal GDP
( Million) Growth European Union 16 106 896 + 1.65% 1 
United States 14 624 184 + 2.64% 2 
China 5 745 133 + 10.46% 3 
Japan 5 390 897 + 2.82% 4 
Germany 3 305 898 + 3.33% 5 
France 2 555 439 + 1.56% 6 
United Kingdom 2 258 565 + 1.70% 7 
Italy 2 036 687 + 1.00% 8 160; Brazil "src =" http://upload.wikimedia.org/wikipedia/commons/thumb/0/05/Flag_of_Brazil.svg/20px-Flag_of_Brazil.svg.png "width =" 20 "height =" 14 " class = "thumbborder" /> Brazil 2 023 528 + 7.54% 9 
Canada 1 563 664 +3.10% 10 
Russia 1 476 912 + 3.97% Rank Country GDP PPP
( Million) European Union 15 150 667 1 United States 14 624 184 2 China 10 084 369 3 Japan 4 308 627 4 
India 4 001 103 5 Germany 2 932 036 6 Russia 2 218 764 7 
Brazil 2 181 677 8 United Kingdom 2 181 069 9 France 2 146 283 10 Italy 1 771 140 GDP per capita
References
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