Gross Domestic Product

Group 6Yifan Du

Chi Yan JimSamson Wong

Jany Limpiyachart

Definition of GDP

Gross Domestic Product

A measure of the economics performance of a country

An aggregate measure of production

Sum of the gross values of the following components: Consumer Spending, Investment made by industry,

Government Spending and the net value of (exports-Imports)

Real GDP and Nominal GDP

GDP figures in the calculation will involve the value of money

The effects of inflation/deflation will influence the comparison of the economics indicator

Nominal GDP means using the raw value (the current value ) to calculate--- inflation in inculded

Real GDP is adjusted for year to year --- excluding the effect of inflation

1. Production

2. Income

3. Expenditure

How?

1. Production

“GDP at producer price” GDP at factor cost + indirect taxes – subsidies on

productsGDP at factor cost = value of sales of goods – purchase

of intermediate goods to produce the goods sold

2. Expenditure

GDP = C + I + G + (X-M)C total spending on all final goods or services I gross investmentsG government purchasesX exportsM imports

3. Income

Total factor income = employee compensation + corporate profits + proprietor’s income + rental income + net interest

GDP = R + I + P + SA + WR rents I interestsP profitsSA statistical adjustmentsW wages

What’s behind China’s staggering GDP statistics?

2014, 7.4%, 1st year 24, second largest

100 million, 1 Dollar

Overview in a historical context

After 1978, from closed traditional economy to market-oriented economy

Central planning system was gradually faded out

Main organs of planned economy still remained

GDP Breakdown Analysis

Low on GDP per capita base, income distribution is extremely uneven

Consumption contribution in GDP

Corruption is a big challenge for Chinese government

Conclusion

Thank you