Lists of Countries by GDP (nominal)



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List of countries by GDP (nominal)

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Countries by 2011 GDP (nominal) according to the CIA World Factbook.^[1]

This article includes a list of countries in the world sorted by their gross domestic product (GDP), the market value of all final goods and services from a nation in a given year. The GDP dollar estimates presented here are calculated at market or government official exchange rates.
Several economies which are not considered to be countries (world, the EU, and some dependent territories) are included in the lists because they appear in the sources. These economies are not ranked in the charts here, but are listed where applicable.
The figures presented here do not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population. Therefore these figures should be used with caution.
Some countries/regions may have citizens which are on average wealthy. These countries/regions could appear in this list as having a small GDP. This would be because the country/region listed has a small population, and therefore small total economy; the GDP is calculated as the population times the wealth per capita.
Comparisons of national wealth are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. (See List of countries by GDP (PPP)) PPP largely removes the exchange rate problem, but has its own drawbacks; it does not reflect the value of economic output in international trade, and it also requires more estimation than nominal GDP. On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures.
The first list includes data compiled by the United Nations Statistics Division for 2010. The second list largely includes data compiled by the International Monetary Fund for 2011.ⁿ¹ The third list shows the World Bank's mostly 2011 estimates, and the fourth list includes mostly 2011 estimates from the CIA World Factbook.

Contents 1 List 2 Graph of largest economies 3 Notes 4 References 5 See also 6 External links

List

List by the United Nations (2010)[2]	List by the International Monetary Fund (2011)[3]	List by the World Bank (1990–2011)[4]	List by the CIA World Factbook (2000–2011)[1]
Rank Country/Region 2010 GDP (millions of US$)  World 62,633,783 1  United States 14,447,100 2  China 5,739,358 3  Japan 5,458,873 4  Germany 3,280,334 5  France 2,559,850 6  United Kingdom 2,253,552 7  Brazil 2,088,966 8  Italy 2,051,290 9  India 1,722,328 10  Canada 1,577,040 11  Russia 1,479,823 12  Spain 1,407,322 13  Australia 1,271,945 14  Mexico 1,032,224 15  South Korea 1,014,369 16  Netherlands 779,310 17  Turkey 734,440 18  Indonesia 707,448 19  Switzerland 527,920 20  Poland 469,393 21  Belgium 469,347 22  Sweden 458,725 23  Saudi Arabia 434,666 24  Norway 413,056 25  Venezuela 391,307 26  Iran 386,670 27  Austria 379,047 28  Argentina 370,263 29  South Africa 363,704 30  Thailand 318,850 31  Denmark 309,866 32  Greece 301,065 33  United Arab Emirates 297,648 34  Colombia 288,086 35  Finland 238,731 36  Malaysia 237,797 37  Portugal 228,859  Hong Kong 224,459 38  Singapore 222,699 39  Israel 217,445 40  Egypt 215,272 41  Ireland 206,600 42  Chile 203,443 43  Philippines 199,591 44  Czech Republic 197,674 45  Nigeria 196,410 46  Pakistan 174,150 47  Romania 161,629 48  Algeria 158,650 49  Peru 157,324 50  Kazakhstan 146,908 51  New Zealand 141,406 52  Ukraine 137,936 53  Hungary 128,629 54  Qatar 127,333 55  Kuwait 124,331 56  Vietnam 103,902 57  Bangladesh 99,689  Puerto Rico 99,202 58  Morocco 91,542 59  Slovakia 87,263 60  Angola 82,470 61  Sudan 79,480 62  Libya 71,945 63  Cuba 64,220 64  Croatia 60,852 65  Syria 59,834 66  Ecuador 58,910 67  Oman 57,850 68  Belarus 54,713 69  Luxembourg 53,330 70  Azerbaijan 51,797 71  Dominican Republic 51,576 72  Sri Lanka 49,549 73  Bulgaria 47,702 74  Slovenia 46,906 75  Tunisia 44,252 76  Burma 42,027 77  Guatemala 41,473 78  Uruguay 40,265 79  Lebanon 39,248 80  Uzbekistan 39,173 81  Serbia 37,713 82  Lithuania 36,478 83  Costa Rica 35,891 84  Yemen 34,569 85  Ghana 32,520 86  Kenya 32,483 87  Iraq 28,141 88  Jordan 27,504  Macau 27,177 89  Ethiopia 26,928 90  Panama 26,777 91  Latvia 24,014 92  Cameroon 23,649 93  Turkmenistan 23,130 94  Cyprus 22,957 95  Bahrain 22,945 96  Côte d'Ivoire 22,780 97  Tanzania 22,502 98  El Salvador 21,215 99  Trinidad and Tobago 20,397 100  Bolivia 19,640 101  Estonia 18,958 102  Gabon 18,771 103  Paraguay 17,886 104  Uganda 17,015 105  Bosnia and Herzegovina 16,837 106  Zambia 16,201 107  Nepal 16,020 108  Afghanistan 15,676 109  Honduras 15,400 110  Botswana 14,857 111  Jamaica 13,428 112  Congo, Democratic Republic of the 13,230 113  Brunei 13,024 114  Senegal 12,841 115  Iceland 12,574 116  North Korea 12,278 117  Equatorial Guinea 11,803 118  Albania 11,783 119  Namibia 11,701 120  Georgia 11,665 121  Cambodia 11,272 122  Congo, Republic of the 10,775 123  Papua New Guinea 9,796 124  Mauritius 9,729 125  Mozambique 9,533 126  Armenia 9,371 127  Mali 9,204 128  Macedonia, Republic of 9,138  New Caledonia 8,861 129  Madagascar 8,739 130  Burkina Faso 8,559 131  Chad 8,166 132  Malta 8,163 133  Bahamas 7,702  Occupied Palestinian Territory 7,349 134  Zimbabwe 7,204  French Polynesia 6,679 135  Benin 6,558 136  Nicaragua 6,551 137  Laos 6,496 138  Mongolia 6,192 139  Haiti 6,123  Bermuda 6,015 140  Moldova 5,809 141  Rwanda 5,655 142  Tajikistan 5,613 143  Kosovo 5,590 144  Niger 5,549 145  Monaco 5,424 146  Malawi 5,325 147  Liechtenstein 5,145 148  Kyrgyzstan 4,616 149  Guinea 4,267 150  Montenegro 4,111  Netherlands Antilles 4,078 151  Barbados 3,963 152  Swaziland 3,927 153  Mauritania 3,913 154  Suriname 3,682 155  Andorra 3,491  Cayman Islands 3,208 156  Togo 3,162 157  Fiji 3,052  Aruba 2,456 158  Guyana 2,260 159  Eritrea 2,254 160  Lesotho 2,129 161  Sierra Leone 2,064  Greenland 2,022 162  Central African Republic 1,984 163  Cape Verde 1,609 164  San Marino 1,487 165  Bhutan 1,486 166  Burundi 1,481 167  Maldives 1,480 168  Belize 1,401  Turks and Caicos Islands 1,381 169  Saint Lucia 1,164 170  Djibouti 1,140 171  Antigua and Barbuda 1,118 172  Somalia 1,071 173  Gambia, The 1,001 174  Seychelles 991  British Virgin Islands 909 175  Liberia 873 176  Guinea-Bissau 817 177  Timor-Leste 794 178  Grenada 776 179  Vanuatu 710 180  Saint Vincent and the Grenadines 675  Zanzibar 661 181  Solomon Islands 642 182  Samoa 612 183  Saint Kitts and Nevis 550 184  Comoros 541 185  Dominica 476 186  Tonga 369 187  Micronesia, Federated States of 297  Cook Islands 248 188  Palau 222 189  São Tomé and Príncipe 212  Anguilla 211 190  Marshall Islands 166 191  Kiribati 146 192  Nauru 63  Montserrat 55 193  Tuvalu 31	Rank Country/Region GDP (millions of US$)  World 69,899,225[5]  European Union 17,610,826[5] 1  United States 15,075,675 2  China 7,298,147n2 3  Japan 5,866,540 4  Germany 3,607,364 5  France 2,778,085 6  Brazil 2,492,907 7  United Kingdom 2,431,310 8  Italy 2,198,732 9  Russia 1,850,401 10  India 1,826,811 11  Canada 1,738,954 12  Australia 1,486,914 13  Spain 1,479,560 14  Mexico 1,153,958 15  South Korea 1,116,247 16  Indonesia 846,450 17  Netherlands 838,112 18  Turkey 774,336 19  Switzerland 660,761 20  Saudi Arabia 597,086 21  Sweden 544,681 22  Belgium 514,593 23  Poland 514,503 24  Norway 485,404 25  Iran 482,433 26  Taiwan 466,424 27  Argentina 444,612 28  Austria 418,414 29  South Africa 408,689 30  Thailand 345,672 31  United Arab Emirates 341,958 32  Denmark 332,019 33  Colombia 327,626 34  Venezuela 316,431 35  Greece 299,275 36  Malaysia 287,943 37  Finland 263,488 38  Singapore 259,849 39  Chile 248,431 40  Nigeria 244,050  Hong Kong 243,666 41  Israel 243,654 42  Portugal 237,831 43  Egypt 235,719 44  Philippines 224,771 45  Ireland 221,224 46  Czech Republic 215,180 47  Pakistan 210,216 48  Algeria 197,862 49  Romania 189,776 50  Kazakhstan 186,199 51  Peru 177,190 52  Qatar 173,519 53  Ukraine 165,245 54  Kuwait 160,984 55  New Zealand 158,869 56  Hungary 140,303 57  Vietnam 122,722 58  Iraq 114,227 59  Bangladesh 113,855 60  Angola 104,288 61  Morocco 99,279 62  Slovakia 96,089 63  Oman 72,680 64  Ecuador 66,474 65  Azerbaijan 64,819 66  Sudan 63,997 67  Croatia 62,428 68  Luxembourg 59,582 69  Sri Lanka 59,152 70  Dominican Republic 55,754 71  Belarus 55,136 72  Bulgaria 53,545 73  Burma 51,444 74  Slovenia 50,330 75  Guatemala 46,900 76  Uruguay 46,710 77  Tunisia 45,991 78  Uzbekistan 45,353 79  Serbia 43,315 80  Lithuania 42,718 81  Costa Rica 40,947 82  Lebanon 39,039 83  Ghana 38,394 84  Libya 35,699 85  Kenya 34,059 86  Yemen 33,758 87  Ethiopia 31,715 88  Panama 30,569 89  Jordan 28,881 90  Latvia 28,252 91  Turkmenistan 28,062 92  Bahrain 25,866 93  Cameroon 25,649 94  Cyprus 24,713 95  Côte d'Ivoire 24,096 96  Paraguay 24,080 97  Bolivia 24,060 98  Tanzania 23,851 99  El Salvador 22,761 100  Trinidad and Tobago 22,577 101  Estonia 22,205 102  Equatorial Guinea 19,588 103  Zambia 19,206 104  Nepal 18,977 105  Afghanistan 18,315 106  Bosnia and Herzegovina 18,106 107  Botswana 17,675 108  South Sudan 17,469 109  Uganda 17,425 110  Honduras 17,366 111  Brunei 16,362 112  Gabon 15,970 113  Congo, Democratic Republic of the 15,713 114  Jamaica 14,490 115  Senegal 14,461 116  Congo, Republic of the 14,439 117  Georgia 14,347 118  Iceland 14,048 119  Albania 12,970 120  Cambodia 12,890 121  Papua New Guinea 12,655 122  Mozambique 12,572 123  Namibia 12,533 124  Mauritius 11,268 125  Macedonia, Republic of 10,644 126  Mali 10,606 127  Armenia 10,251 128  Burkina Faso 10,197 129  Madagascar 9,901 130  Zimbabwe 9,458 131  Chad 9,345 132  Malta 8,941 133  Mongolia 8,709 134  Laos 8,302 135  Bahamas, The 7,788 136  Haiti 7,388 137  Benin 7,300 138  Nicaragua 7,297 139  Moldova 7,003 140  Tajikistan 6,523 141  Kosovo 6,452 142  Rwanda 6,332 143  Niger 6,022 144  Kyrgyzstan 5,920 145  Malawi 5,607 146  Guinea 5,170 147  Suriname 4,552 148  Timor-Leste 4,539 149  Montenegro 4,536 150  Barbados 4,313 151  Mauritania 4,198 152  Swaziland 3,977 153  Fiji 3,796 154  Togo 3,700 155  Sierra Leone 2,915 156  Eritrea 2,609 157  Guyana 2,577 158  Lesotho 2,489 159  Burundi 2,356 160  Central African Republic 2,195 161  San Marino 2,048 162  Maldives 1,917 163  Cape Verde 1,903 164  Liberia 1,545 165  Bhutan 1,516 166  Belize 1,446 167  Djibouti 1,239 168  Saint Lucia 1,230 169  Antigua and Barbuda 1,118 170  Seychelles 1,017 171  Gambia, The 977 172  Guinea-Bissau 969 173  Solomon Islands 869 174  Grenada 819 175  Vanuatu 760 176  Saint Kitts and Nevis 715 177  Saint Vincent and the Grenadines 688 178  Samoa 634 179  Comoros 614 180  Dominica 483 181  Tonga 439 182  São Tomé and Príncipe 248 183  Kiribati 167 184  Tuvalu 36  Syria n/a	Rank Country/Region GDP (millions of US$) Year  World 69,983,693n12 2011  European Union 17,552,216n12 2011 1  United States 15,094,000 2011 2  China 7,318,499n2 2011 3  Japan 5,867,154 2011 4  Germany 3,570,556 2011 5  France 2,773,032n4 2011 6  Brazil 2,476,652 2011 7  United Kingdom 2,431,589 2011 8  Italy 2,194,750 2011 9  Russia 1,857,770 2011 10  India 1,847,982 2011 11  Canada 1,736,051 2011 12  Spain 1,490,810 2011 13  Australia 1,371,764 2011 14  Mexico 1,155,316 2011 15  South Korea 1,116,247 2011 16  Indonesia 846,832 2011 17  Netherlands 836,257 2011 18  Turkey 773,091 2011 19  Switzerland 635,650 2011 20  Saudi Arabia 576,824 2011 21  Sweden 538,131 2011 22  Poland 514,496 2011 23  Belgium 511,533 2011 24  Norway 485,803 2011 25  Argentina 445,989 2011 26  Austria 418,484 2011 27  South Africa 408,237 2011 28  United Arab Emirates 360,245 2011 29  Thailand 345,649 2011 30  Denmark 332,677 2011 31  Colombia 331,655 2011 32  Iran 331,015 2009 33  Venezuela 316,482 2011 34  Greece 298,734 2011 35  Malaysia 278,671 2011 36  Finland 266,071 2011 37  Chile 248,585 2011  Hong Kong 243,666 2011 38  Israel 242,929 2011 39  Singapore 239,700 2011 40  Portugal 237,522 2011 41  Nigeria 235,923 2011 42  Egypt 229,531 2011 43  Philippines 224,754 2011 44  Ireland 217,275 2011 45  Czech Republic 215,215 2011 46  Pakistan 211,092 2011 47  Algeria 188,681 2011 48  Kazakhstan 186,198 2011 49  Romania 179,794 2011 50  Peru 176,662 2011 51  Kuwait 176,590 2011 52  Qatar 172,982 2011 53  Ukraine 165,245 2011 54  New Zealand 142,477 2010 55  Hungary 140,029 2011 56  Vietnam 123,961 2011 57  Iraq 115,388 2011 58  Bangladesh 110,612 2011 59  Angola 100,990 2011 60  Morocco 100,221n8 2011  Puerto Rico 96,261 2010 61  Slovakia 95,994 2011 62  Oman 71,782 2011 63  Ecuador 67,003 2011 64  Croatia 63,850 2011 65  Azerbaijan 63,404 2011 66  Cuba 60,806 2008 67  Libya 62,360 2009 68  Luxembourg 59,475 2011 69  Sri Lanka 59,172 2011 70  Syria 59,147 2010 71  Dominican Republic 55,611 2011 72  Belarus 55,136 2011 73  Sudan +  South Sudan 55,097 2011 74  Bulgaria 53,514 2011 75  Slovenia 49,539 2011 76  Guatemala 46,900 2011 77  Uruguay 46,710 2011 78  Tunisia 45,864 2011 79  Uzbekistan 45,359 2011 80  Serbia 45,043 2011 81  Lithuania 42,725 2011 82  Lebanon 42,185 2011 83  Costa Rica 41,007 2011 84  Ghana 39,200 2011  Macau 36,428 2011 85  Yemen 33,758 2011 86  Kenya 33,621 2011 87  Ethiopia 31,709 2011 88  Panama 30,677 2011 89  Jordan 28,840 2011 90  Latvia 28,252 2011 91  Cameroon 25,465 2011 92  Cyprus 24,690n9 2011 93  Bolivia 24,427 2011 94  Turkmenistan 24,107 2011 95  Côte d'Ivoire 24,075 2011 96  Paraguay 23,877 2011 97  Tanzania 23,705n10 2011 98  El Salvador 23,054 2011 99  Bahrain 22,945 2010 100  Trinidad and Tobago 22,483 2011 101  Estonia 22,185 2011 102  Afghanistan 20,343 2011 103  Equatorial Guinea 19,790 2011 104  Zambia 19,206 2011 105  Nepal 18,884 2011 106  Bosnia and Herzegovina 18,088 2011 107  Botswana 17,627 2011 108  Honduras 17,259 2011 109  Gabon 17,052 2011 110  Uganda 16,810 2011 111  Congo, Democratic Republic of the 15,642 2011 112  Jamaica 15,070 2011 113  Congo, Republic of the 14,748 2011 114  Georgia 14,367n11 2011 115  Senegal 14,291 2011 116  Iceland 14,059 2011 117  Albania 12,960 2011 118  Papua New Guinea 12,937 2011 119  Cambodia 12,875 2011 120  Mozambique 12,798 2011 121  Brunei 12,370 2010 122  Namibia 12,301 2011  Guernsey +  Jersey 11,515n12 2007 123  Mauritius 11,313 2011 124  Mali 10,590 2011 125  Armenia 10,248 2011 126  Burkina Faso 10,187 2011 127  Macedonia, Republic of 10,165 2011 128  Madagascar 9,947 2011 129  Zimbabwe 9,900 2011 130  Chad 9,486 2011 131  Malta 8,887 2011 132  Mongolia 8,558 2011 133  Laos 8,298 2011 134  Bahamas, The 7,788 2011 135  Haiti 7,346 2011 136  Nicaragua 7,297 2011 137  Benin 7,295 2011 138  Moldova 7,000n7 2011 139  Tajikistan 6,522 2011 140  Kosovo 6,446 2011 141  Rwanda 6,377 2011 142  Monaco 6,109 2009 143  Niger 6,017 2011 144  Kyrgyzstan 5,919 2011  Bermuda 5,765 2010 145  Malawi 5,700 2011 146  Guinea 5,131 2011 147  Liechtenstein 4,826 2009 148  Montenegro 4,550 2011 149  Suriname 4,351 2010 150  Mauritania 4,076 2011  Isle of Man 4,076 2007  West Bank and Gaza 4,016 2005 151  Swaziland 3,978 2011 152  Fiji 3,813 2011 153  Andorra 3,712 2008 154  Barbados 3,685 2011 155  Togo 3,595 2011  French Polynesia 3,448 2000  New Caledonia 2,682 2000 156  Eritrea 2,609 2011 157  Lesotho 2,426 2011 158  Burundi 2,326 2011 159  Guyana 2,259 2010 160  Sierra Leone 2,243 2011  Faroe Islands 2,198 2009 161  Central African Republic 2,166 2011 162  Maldives 2,050 2011  Virgin Islands, U.S. 1,996 1993  Aruba 1,911 2002 163  Cape Verde 1,901 2011 164  San Marino 1,900 2008 165  Bhutan 1,689 2011 166  Belize 1,474 2011  Greenland 1,268 2009 167  Saint Lucia 1,232 2011 168  Liberia 1,161 2011 169  Antigua and Barbuda 1,129 2011 170  Gambia, The 1,109 2011 171  Timor-Leste 1,054 2011 172  Djibouti 1,049 2009  Cayman Islands 1,012 1996 173  Seychelles 1,007 2011 174  Guinea-Bissau 973 2011 175  Somalia 917 1990 176  Solomon Islands 838 2011 177  Vanuatu 819 2011 178  Grenada 816 2011 179  Saint Kitts and Nevis 709 2011 180  Saint Vincent and the Grenadines 688 2011 181  Samoa 649 2011 182  Comoros 610 2011 183  Dominica 482 2011 184  Tonga 436 2011 185  Micronesia, Federated States of 318 2011 186  São Tomé and Príncipe 248 2011 187  Palau 180 2011 188  Kiribati 178 2011 189  Marshall Islands 174 2011 190  Tuvalu 36 2011	Rank Country/Region GDP (millions of US$) Year  World 69,990,000 2011 est.  European Union 17,330,000 2011 est. 1  United States 15,090,000 2011 est. 2  China 7,298,000 2011 est. 3  Japan 5,869,000 2011 est. 4  Germany 3,577,000 2011 est. 5  France 2,776,000 2011 est. 6  Brazil 2,493,000 2011 est. 7  United Kingdom 2,418,000 2011 est. 8  Italy 2,199,000 2011 est. 9  Russia 1,850,000 2011 est. 10  Canada 1,737,000 2011 est. 11  India 1,676,000 2011 est. 12  Spain 1,494,000 2011 est. 13  Australia 1,488,000 2011 est. 14  Mexico 1,155,000 2011 est. 15  South Korea 1,116,000 2011 est. 16  Indonesia 845,700 2011 est. 17  Netherlands 840,400 2011 est. 18  Turkey 778,100 2011 est. 19  Switzerland 636,100 2011 est. 20  Saudi Arabia 577,600 2011 est. 21  Sweden 538,200 2011 est. 22  Poland 513,800 2011 est. 23  Belgium 513,400 2011 est. 24  Norway 483,700 2011 est. 25  Iran 482,400 2011 est. 26  Taiwan 466,800 2011 est. 27  Argentina 447,600 2011 est. 28  Austria 419,200 2011 est. 29  South Africa 408,100 2011 est. 30  United Arab Emirates 360,100 2011 est. 31  Thailand 345,600 2011 est. 32  Denmark 333,200 2011 est. 33  Colombia 328,400 2011 est. 34  Venezuela 315,800 2011 est. 35  Greece 303,100 2011 est. 36  Malaysia 278,700 2011 est. 37  Finland 266,600 2011 est. 38  Singapore 259,800 2011 est. 39  Chile 248,400 2011 est.  Hong Kong 243,300 2011 est. 40  Israel 242,900 2011 est. 41  Nigeria 238,900 2011 est. 42  Portugal 238,900 2011 est. 43  Egypt 235,700 2011 est. 44  Ireland 217,700 2011 est. 45  Czech Republic 215,300 2011 est. 46  Philippines 213,100 2011 est. 47  Pakistan 210,600 2011 est. 48  Algeria 190,700 2011 est. 49  Romania 189,800 2011 est. 50  Kazakhstan 178,300 2011 est. 51  Kuwait 176,700 2011 est. 52  Qatar 173,800 2011 est. 53  Peru 173,500 2011 est. 54  Ukraine 165,000 2011 est. 55  New Zealand 161,900 2011 est. 56  Hungary 140,300 2011 est. 57  Vietnam 122,700 2011 est. 58  Iraq 115,400 2011 est. 59  Bangladesh 113,000 2011 est. 60  Angola 100,900 2011 est. 61  Morocco 99,240 2011 est. 62  Slovakia 96,090 2011 est.  Puerto Rico 93,520 2010 est. 63  Oman 71,890 2011 est. 64  Ecuador 66,380 2011 est. 65  Sudan +  South Sudan 64,750 2011 est. 66  Syria 64,700 2011 est. 67  Croatia 63,840 2011 est. 68  Azerbaijan 62,320 2011 est. 69  Sri Lanka 59,100 2011 est. 70  Luxembourg 58,410 2011 est. 71  Cuba 57,490 2010 est. 72  Dominican Republic 56,700 2011 est. 73  Belarus 55,480 2011 est. 74  Bulgaria 53,510 2011 est. 75  Burma 51,930 2011 est. 76  Slovenia 49,590 2011 est. 77  Guatemala 46,900 2011 est. 78  Uruguay 46,870 2011 est. 79  Tunisia 46,360 2011 est. 80  Uzbekistan 45,350 2011 est. 81  Serbia 45,060 2011 est. 82  Lithuania 42,720 2011 est. 83  Costa Rica 40,950 2011 est. 84  Lebanon 39,040 2011 est. 85  Ghana 37,160 2011 est. 86  Libya 36,870 2011 est. 87  Kenya 34,800 2011 est. 88  Yemen 33,680 2011 est. 89  Ethiopia 31,260 2011 est. 90  Panama 30,570 2011 est. 91  Jordan 29,230 2011 est. 92  Latvia 28,250 2011 est. 93  North Korea 28,000 2009 est. 94  Bahrain 26,110 2011 est. 95  Cameroon 25,760 2011 est. 96  Turkmenistan 25,740 2011 est. 97  Cyprus 24,950 2011 est. 98  Bolivia 24,600 2011 est. 99  Côte d'Ivoire 24,100 2011 est. 100  Tanzania 23,330 2011 est. 101  El Salvador 22,760 2011 est. 102  Trinidad and Tobago 22,710 2011 est. 103  Estonia 22,230 2011 est.  Macau 22,100 2009 est. 104  Paraguay 21,240 2011 est. 105  Equatorial Guinea 19,810 2011 est. 106  Zambia 19,210 2011 est. 107  Nepal 18,580 2011 est. 108  Afghanistan 18,180 2011 est. 109  Bosnia and Herzegovina 17,970 2011 est. 110  Botswana 17,570 2011 est. 111  Honduras 17,380 2011 est. 112  Uganda 16,810 2011 est. 113  Gabon 16,180 2011 est. 114  Congo, Republic of the 15,670 2011 est. 115  Brunei 15,530 2011 est. 116  Jamaica 14,810 2011 est. 117  Congo, Democratic Republic of the 14,770 2011 est. 118  Senegal 14,460 2011 est. 119  Georgia 14,350 2011 est. 120  Iceland 14,050 2011 est. 121  Cambodia 12,860 2011 est. 122  Albania 12,850 2011 est. 123  Mozambique 12,830 2011 est. 124  Papua New Guinea 12,660 2011 est. 125  Namibia 12,460 2011 est. 126  Mauritius 11,310 2011 est. 127  Mali 10,600 2011 est. 128  Macedonia, Republic of 10,330 2011 est. 129  Armenia 10,110 2011 est. 130  Madagascar 10,030 2011 est. 131  Burkina Faso 9,981 2011 est. 132  Chad 9,344 2011 est. 133  Zimbabwe 9,323 2011 est. 134  Malta 8,896 2011 est. 135  Mongolia 8,506 2011 est. 136  Bahamas, The 8,074 2011 est. 137  Laos 7,891 2011 est. 138  Haiti 7,388 2011 est. 139  Benin 7,306 2011 est. 140  Nicaragua 7,297 2011 est. 141  Moldova 7,003 2011 est.  West Bank and Gaza 6,641 2008 est. 142  Tajikistan 6,523 2011 est. 143  Kosovo 6,452 2011 est. 144  Rwanda 6,179 2011 est.  French Polynesia 6,100 2004 145  Niger 6,022 2011 est. 146  Kyrgyzstan 5,920 2011 est. 147  Malawi 5,673 2011 est. 148  Monaco 5,470 2010 est. 149  Guinea 5,212 2011 est.  Jersey 5,100 2005 est.  Curaçao 5,080 2008 est. 150  Montenegro 4,536 2011 est. 151  Liechtenstein 4,503 2009 152  Barbados 4,478 2011 est. 153  Timor-Leste 4,315 2011 est. 154  Mauritania 4,200 2011 est. 155  Swaziland 3,947 2011 est. 156  Suriname 3,790 2011 est. 157  Togo 3,611 2011 est. 158  Fiji 3,546 2011 est.  New Caledonia 3,300 2003 est.  Guam 2,773 2001  Guernsey 2,742 2005  Isle of Man 2,719 2005 est. 159  Eritrea 2,609 2011 est. 160  Guyana 2,480 2011 est. 161  Lesotho 2,453 2011 est. 162  Somalia 2,372 2010 est. 163  Burundi 2,356 2011 est.  Aruba 2,258 2005 est.  Cayman Islands 2,250 2008 est.  Faroe Islands 2,220 2010 est. 164  Sierra Leone 2,196 2011 est. 165  Central African Republic 2,165 2011 est.  Greenland 2,160 2011 est. 166  Maldives 1,944 2011 est. 167  Cape Verde 1,903 2011 est. 168  San Marino 1,611 2011 169  Bhutan 1,488 2011 est. 170  Belize 1,474 2011 est. 171  Djibouti 1,239 2011 est. 172  Saint Lucia 1,239 2011 est. 173  Antigua and Barbuda 1,187 2011 est. 174  Liberia 1,154 2011 est.  Gibraltar 1,106 2006 est.  British Virgin Islands 1,095 2008 175  Seychelles 1,014 2011 est. 176  Gambia, The 977 2011 est. 177  Guinea-Bissau 969 2011 est. 178  Solomon Islands 840 2011 est. 179  Grenada 822 2011 est.  Sint Maarten 794.7 2008 180  Vanuatu 743 2011 est. 181  Saint Kitts and Nevis 715 2011 est. 182  Saint Vincent and the Grenadines 695 2011 est.  Northern Mariana Islands 633.4 2000 183  Samoa 630 2011 est. 184  Comoros 614 2011 est. 185  Dominica 489 2011 est.  American Samoa 462.2 2005 186  Tonga 439 2011 est. 187  São Tomé and Príncipe 248 2011 est. 188  Micronesia, Federated States of 238.1 2008  Cook Islands 183.2 2005 est.  Anguilla 175.4 2009 est. 189  Kiribati 167 2011 est.  Falkland Islands 164.5 2007 est. 190  Palau 164 2008 191  Marshall Islands 161.7 2008 est. 192  Tuvalu 35 2011 est.  Niue 10.01 2003

Graph of largest economies

Largest economies by nominal GDP, 2011

Economy	Nominal GDP (Billion USD)
European Union	17,611
(01)  United States	15,076
(02)  China	7,298
(03)  Japan	5,867
(04)  Germany	3,607
(05)  France	2,778
(06)  Brazil	2,493
(07)  United Kingdom	2,431
(08)  Italy	2,199
(09)  Russia	1,850
(10)  India	1,827
(11)  Canada	1,739
(12)  Australia	1,487
(13)  Spain	1,480
(14)  Mexico	1,154
(15)  South Korea	1,116
(16)  Indonesia	846
(17)  Netherlands	838
(18)  Turkey	774
(19)  Switzerland	661
(20)  Saudi Arabia	597
Rest of the World	13,781
The twenty largest economies by nominal GDP in 2011, according to the IMF.[6]

Notes

1. ^ The GDP figure for some countries is an IMF estimate.

2. ^ Figures exclude Taiwan, and special administrative regions of Hong Kong and Macau.

4. ^ Data include the French overseas departments of French Guiana, Guadeloupe, Martinique, and Réunion.

5. ^ Excludes Kosovo.

6. ^ Hyperinflation and the plunging value of the Zimbabwean dollar makes Zimbabwe's nominal GDP a highly inaccurate statistic.

7. ^ Excludes data for Transnistria.

8. ^ Includes Former Spanish Sahara.

9. ^ Data are for the area controlled by the Government of the Republic of Cyprus.

10. ^ Covers mainland Tanzania only.

11. ^ Excludes Abkhazia and South Ossetia.

12. ^ These data, as well as the complete set of data for all countries, can be accessed through the World Bank API. More information about the API can be found here

References

1. ^ ^{a b} "GDP (Official Exchange Rate)". CIA World Factbook. Retrieved June 2, 2012.
2. ^ http://unstats.un.org/unsd/snaama/dnltransfer.asp?fID=2
3. ^ "Report for Selected Countries and Subjects". World Economic Outlook Database, October 2012. International Monetary Fund. Retrieved October 9, 2012.
4. ^ "GDP (current US$)". World Bank. Retrieved October 9, 2012.
5. ^ ^{a b} "Nominal 2011 GDP for the world and the European Union (EU).". World Economic Outlook Database, October 2012. International Monetary Fund. Retrieved 2012-10-09.
6. ^ Figures from the October 2012 update of the International Monetary Fund's World Economic Outlook Database. Figure for EU, accessed 9 October 2012. Figures for the countries of the world, accessed 9 October 2012.

See also

[hide] v t e Lists of countries by GDP rankings Nominal Per capita Past and future per capita Sector composition Ten largest historically Trillion dollar club Purchasing power parity (PPP) Per capita Past per capita Past and future per capita Private consumption per capita Per hour Per person employed Relative differences between bordering countries per capita Growth Real Per capita 1980–2017 growth Industrial growth Gross national income (GNI) Nominal PPP Countries by region Africa nominal PPP Latin America & Caribbean nominal PPP North America nominal PPP South America nominal PPP Arab League Asia Asia & Pacific nominal nominal per capita PPP Former Soviet Republics Europe nominal nominal per capita PPP PPP per capita Oceania Subnational divisions Argentina Australia Brazil Canada Chile per capita China China GDP per capita top cities by GDP top cities by GDP per capita Croatia France Germany India Indonesia Italy Japan Mexico Pakistan Russia South Korea Spain U.S. comparison with countries OECD Top country subdivisions by GDP (nominal) Lists of countries by financial rankings Lists by country List of international rankings List of top international rankings by country

[show] v t e Lists of countries by financial rankings

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Economic classification of countries

 

http://en.wikipedia.org/wiki/Gross_domestic_product

Gross domestic product

From Wikipedia, the free encyclopedia

Jump to: navigation, search

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

CIA World Factbook 2005 figures of total nominal GDP (top) compared to PPP-adjusted GDP (bottom)

Countries by 2011 GDP (nominal) per capita^[1]

over $102,400   $51,200–102,400   $25,600–51,200   $12,800–25,600   $6,400–12,800   $3,200–6,400

$1,600–3,200   $800–1,600   $400–800   below $400   unavailable

GDP (PPP) per capita

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living;^[2][3] GDP per capita is not a measure of personal income (See Standard of living and GDP). Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita (See Gross domestic income).
GDP is related to national accounts, a subject in macroeconomics. GDP is not to be confused with Gross National Product (GNP) which allocates production based on ownership.

Contents 1 History 2 Determining GDP 2.1 Production approach 2.2 Income approach 2.3 Expenditure approach 2.3.1 Components of GDP by expenditure 2.3.2 Examples of GDP component variables 3 GDP vs GNP 3.1 International standards 3.2 National measurement 3.3 Interest rates 4 Nominal GDP and adjustments to GDP 5 Cross-border comparison and PPP 6 Per unit GDP 7 Standard of living and GDP 8 Externalities 9 Lists of countries by their GDP 9.1 List of newer approaches to the measurement of (economic) progress 10 Criticisms 11 See also 12 Bibliography 13 References 14 External links 14.1 Global 14.2 Data 14.3 Articles and books

History

This section requires expansion. (March 2011)

GDP was first developed by Simon Kuznets for a US Congress report in 1934,^[4] who immediately said not to use it as a measure for welfare (see below under limitations). After the Bretton Woods conference in 1944, GDP became the main tool for measuring the country's economy.^[5]

Determining GDP

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GDP can be determined in three ways, all of which should, in principle, give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.
The most direct of the three is the product 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.^[6]
Example: the expenditure method:

GDP = private consumption + gross investment + government spending + (exports − imports), or

Note: "Gross" means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for investment in new fixed assets or inventories, or for replacing depreciated fixed assets. "Domestic" means that GDP measures production that takes place within the country's borders. In the expenditure-method equation given above, the exports-minus-imports term is necessary in order to null out expenditures on things not produced in the country (imports) and add in things produced but not sold in the country (exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending.^{[citation needed]} Two advantages of dividing total consumption this way in theoretical macroeconomics are:

• Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
• If separated from endogenous private consumption, government consumption can be treated as exogenous,^{[citation needed]} so that different government spending levels can be considered within a meaningful macroeconomic framework.

Production approach

" Market value of all final goods and services calculated during 1 year . "
The production approach is also called as Net Product or Value added method. This method consists of three stages:

1. Estimating the Gross Value of domestic Output in various economic activities;
2. Determining the intermediate consumption, i.e., the cost of material, supplies and services used to produce final goods or services; and finally
3. Deducting intermediate consumption from Gross Value to obtain the Net Value of Domestic Output.

Symbolically,
Gross Value Added = Value of output – Value of Intermediate Consumption.
Value of Output = Value of the total sales of goods and services + Value of changes in the inventories.
The sum of Gross Value Added in various economic activities is known as GDP at factor cost.
GDP at factor cost plus indirect taxes less subsidies on products is GDP at Producer Price.
For measuring gross output of domestic product, economic activities (i.e. industries) are classified into various sectors. After classifying economic activities, the gross 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 and
2. By collecting data on gross sales and inventories from the records of companies and adding them together

Subtracting each sector's intermediate consumption from gross output, we get sectoral Gross Value Added (GVA) at factor cost. We, then add gross value of all sectors to get GDP at factor cost. Adding indirect tax minus subsidies in GDP at factor cost, we get GDP at Producer Prices.

Income approach

" sum total of incomes of individuals living in a country during 1 year ."
Another way of measuring GDP is to measure total income. 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 below. (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’ income
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 + T_{P & M} – S_{P & 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^[7]

Yet another formula for GDP by the income method is:^{[citation needed]}

where R : rents
I : interests
P : profits
SA : statistical adjustments (corporate income taxes, dividends, undistributed corporate profits)
W : wages
Note the mnemonic, "ripsaw".

Expenditure approach

" All expenditure incurred by individuals during 1 year . "
In economics, most things produced are produced for sale, and sold. Therefore, measuring the total expenditure of money used to buy things is a way of measuring production. This is known as the expenditure method of calculating GDP. Note that if you knit yourself a sweater, it is production but does not get counted as GDP because it is never sold. Sweater-knitting is a small part of the economy, but if one counts some major activities such as child-rearing (generally unpaid) as production, GDP ceases to be an accurate indicator of production. Similarly, if there is a long term shift from non-market provision of services (for example cooking, cleaning, child rearing, do-it yourself repairs) to market provision of services, then this trend toward increased market provision of services may mask a dramatic decrease in actual domestic production, resulting in overly optimistic and inflated reported GDP. This is particularly a problem for economies which have shifted from production economies to service economies.

Components of GDP by expenditure

Components of U.S. GDP

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, 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, 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.

A fully equivalent definition is that GDP (Y) is the sum of final consumption expenditure (FCE), gross capital formation (GCF), and net exports (X – M).

Y = FCE + GCF+ (X − M)

FCE can then be further broken down by three sectors (households, governments and non-profit institutions serving households) and GCF by five sectors (non-financial corporations, financial corporations, households, governments and non-profit institutions serving households). The advantage of this second definition is that expenditure is systematically broken down, firstly, by type of final use (final consumption or capital formation) and, secondly, by sectors making the expenditure, whereas the first definition partly follows a mixed delimitation concept by type of final use and sector.
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.^[8] )
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]."^[9]

Examples of GDP component variables

C, I, G, and NX(net exports): If a person spends money to renovate a hotel to increase occupancy rates, the spending represents private investment, but if he buys shares in a consortium to execute the renovation, it is saving. The former is included when measuring GDP (in I), the latter is not. However, when the consortium conducted its own expenditure on renovation, that expenditure would be included in GDP.
If a hotel is a private home, spending for renovation would be measured as consumption, but if a government agency converts the hotel into an office for civil servants, the spending would be included in the public sector spending, or G.
If the renovation involves the purchase of a chandelier from abroad, that spending would be counted as C, G, or I (depending on whether a private individual, the government, or a business is doing the renovation), but then counted again as an import and subtracted from the GDP so that GDP counts only goods produced within the country.
If a domestic producer is paid to make the chandelier for a foreign hotel, the payment would not be counted as C, G, or I, but would be counted as an export.

GDP real growth rates for 2007

A "production boundary" that delimits what will be counted as GDP.

"One of the fundamental questions that must be addressed in preparing the national economic accounts is how to define the production boundary–that is, what parts of the myriad human activities are to be included in or excluded from the measure of the economic production."^[10]

All output for market is at least in theory included within the boundary. Market output is defined as that which is sold for "economically significant" prices; economically significant prices are "prices which have a significant influence on the amounts producers are willing to supply and purchasers wish to buy."^[11] An exception is that illegal goods and services are often excluded even if they are sold at economically significant prices (Australia and the United States exclude them).
This leaves non-market output. It is partly excluded and partly included. First, "natural processes without human involvement or direction" are excluded.^[12] Also, there must be a person or institution that owns or is entitled to compensation for the product. An example of what is included and excluded by these criteria is given by the United States' national accounts agency: "the growth of trees in an uncultivated forest is not included in production, but the harvesting of the trees from that forest is included."^[13]
Within the limits so far described, the boundary is further constricted by "functional considerations."^[14] The Australian Bureau for Statistics explains this: "The national accounts are primarily constructed to assist governments and others to make market-based macroeconomic policy decisions, including analysis of markets and factors affecting market performance, such as inflation and unemployment." Consequently, production that is, according to them, "relatively independent and isolated from markets," or "difficult to value in an economically meaningful way" [i.e., difficult to put a price on] is excluded.^[15] Thus excluded are services provided by people to members of their own families free of charge, such as child rearing, meal preparation, cleaning, transportation, entertainment of family members, emotional support, care of the elderly.^[16] Most other production for own (or one's family's) use is also excluded, with two notable exceptions which are given in the list later in this section.
Nonmarket outputs that are included within the boundary are listed below. Since, by definition, they do not have a market price, the compilers of GDP must impute a value to them, usually either the cost of the goods and services used to produce them, or the value of a similar item that is sold on the market.

• Goods and services provided by governments and non-profit organizations free of charge or for economically insignificant prices are included. The value of these goods and services is estimated as equal to their cost of production. This ignores the consumer surplus generated by an efficient and effective government supplied infrastructure. For example, government-provided clean water confers substantial benefits above its cost. Ironically, lack of such infrastructure which would result in higher water prices (and probably higher hospital and medication expenditures) would be reflected as a higher GDP. This may also cause a bias that mistakenly favors inefficient privatizations since some of the consumer surplus from privatized entities' sale of goods and services are indeed reflected in GDP.^[17]
• Goods and services produced for own-use by businesses are attempted to be included. An example of this kind of production would be a machine constructed by an engineering firm for use in its own plant.
• Renovations and upkeep by an individual to a home that she owns and occupies are included. The value of the upkeep is estimated as the rent that she could charge for the home if she did not occupy it herself. This is the largest item of production for own use by an individual (as opposed to a business) that the compilers include in GDP.^[17] If the measure uses historical or book prices for real estate, this will grossly underestimate the value of the rent in real estate markets which have experienced significant price increases (or economies with general inflation). Furthermore, depreciation schedules for houses often accelerate the accounted depreciation relative to actual depreciation (a well built house can be lived in for several hundred years – a very long time after it has been fully depreciated). In summary, this is likely to grossly underestimate the value of existing housing stock on consumers' actual consumption or income.
• Agricultural production for consumption by oneself or one's household is included.
• Services (such as chequeing-account maintenance and services to borrowers) provided by banks and other financial institutions without charge or for a fee that does not reflect their full value have a value imputed to them by the compilers and are included. The financial institutions provide these services by giving the customer a less advantageous interest rate than they would if the services were absent; the value imputed to these services by the compilers is the difference between the interest rate of the account with the services and the interest rate of a similar account that does not have the services. According to the United States Bureau for Economic Analysis, this is one of the largest imputed items in the GDP.^[18]

GDP vs GNP

GDP can be contrasted with gross national product (GNP) or gross national income (GNI). The difference is that GDP defines its scope according to location, while GNP defines its scope according to ownership. In a global context, world GDP and world GNP are, therefore, equivalent terms.
GDP is product produced within a country's borders; GNP 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 GNP 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 GNP; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNP but not its GDP.
To take the United States as an example, the U.S.'s GNP 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.^[19]
In 1991, the United States switched from using GNP to using GDP as its primary measure of production.^[20] The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts.^[21]

International standards

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) ^[22]
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 requires expansion. (August 2009)

National measurement

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

Interest rates

Net interest expense is a transfer payment in all sectors except the financial sector. Net interest expenses in the financial sector are seen as production and value added and are added to GDP.

Nominal GDP and adjustments to GDP

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.^[23]
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 PPP

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 purchase power parity exchange rate.

• Current currency exchange rate is the exchange rate in the international currency 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 and relative economic strength. 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 purchasing power parity method accounts for the relative effective domestic purchasing power of the average producer or consumer within an economy. The method can provide a better indicator of the living standards of less developed countries, because it compensates for the weakness of local currencies in the international markets. For example, India ranks 10th by nominal GDP, but 3rd by PPP. The PPP method of GDP conversion is more relevant to non-traded goods and services.

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.

Per unit GDP

GDP is an aggregate figure which does not consider differing sizes of nations. Therefore, GDP can be stated as GDP per capita (per person) in which total GDP is divided by the resident population on a given date, GDP per citizen where total GDP is divided by the numbers of citizens residing in the country on a given date, and less commonly GDP per unit of a resource input, such as GDP per GJ of energy or Gross domestic product per barrel. GDP per citizen in the above case is pretty similar to GDP per capita in most nations, however, in nations with very high proportions of temporary foreign workers like in Persian Gulf nations, the two figures can be vastly different.

Standard of living and GDP

GDP per capita is not a measurement of the standard of living in an economy; however, it is often used as such an indicator, on the rationale that all citizens would benefit from their country's increased economic production. Similarly, GDP per capita is not a measure of personal income. GDP may increase while real incomes for the majority decline. 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.
The major disadvantage is that it is not a measure of standard of living. GDP is intended to be a measure of total national economic activity—a separate concept.
The argument for using GDP as a standard-of-living proxy is not that it is a good indicator of the absolute level of standard of living, but that living standards tend to move with per-capita GDP, so that changes in living standards are readily detected through changes in GDP.

Externalities

GDP is widely used by economists to gauge economic recession and recovery and an economy's general monetary ability to address externalites. It is not meant to measure externalities. It serves as a general metric for a nominal monetary standard of living and is not adjusted for costs of living within a region. GDP is a neutral measure which merely shows an economy's general ability to pay for externalities such as social and environmental concerns.^[24] Examples of externalities include:

• 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.
• Non-market transactions–GDP excludes activities that are not provided through the market, such as household production and volunteer or unpaid services. As a result, GDP is understated. Unpaid work conducted on Free and Open Source Software (such as GNU/Linux) contribute nothing to GDP, but it was estimated that it would have cost more than a billion US dollars for a commercial company to develop. Also, if Free and Open Source Software became identical to its proprietary software counterparts, and the nation producing the propriety software stops buying proprietary software and switches to Free and Open Source Software, then the GDP of this nation would reduce; however, there would be no reduction in economic production or standard of living. The work of New Zealand economist Marilyn Waring has highlighted that if a concerted attempt to factor in unpaid work were made, then it would in part undo the injustices of unpaid (and in some cases, slave) labour, and also provide the political transparency and accountability necessary for democracy. Shedding some doubt on this claim, however, is the theory that won economist Douglass North the Nobel Memorial Prize in Economic Sciences in 1993.^{[citation needed]} North argued that the encouragement of private invention and enterprise due to the creation and strengthening of the patent system became the fundamental catalyst behind the Industrial Revolution in England.
• Underground economy–Official GDP estimates may not take into account the underground economy, in which transactions contributing to production, such as illegal trade and tax-avoiding activities, are unreported, causing GDP to be underestimated.
• Asset Value–GDP does not take into account the value of all assets in an economy. This is akin to ignoring a company's balance sheet, and judging it solely on the basis of its income statement.
• 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 (I helped you build your house ten years ago, so now you help me).
• GDP also ignores subsistence production.
• Quality improvements and inclusion of new products–By not 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 from 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 back then.
• What is being produced–GDP counts work that produces no net change or that results from repairing harm. For example, rebuilding after a natural disaster or war may produce a considerable amount of economic activity and thus boost GDP. The economic value of health care is another classic example—it may raise GDP if many people are sick and they are receiving expensive treatment, but it is not a desirable situation. Alternative economic estimates, such as the standard of living or discretionary income per capita try to measure the human utility of economic activity. See uneconomic growth.
• Sustainability of growth– GDP is a measurement of economic historic activity and is not necessarily a projection. A country may achieve a temporarily high GDP from use of natural resources or by misallocating investment.
• Nominal GDP doesn't measure variations in purchasing power or costs of living by area, so when the GDP figure is deflated over time, GDP growth can vary greatly depending on the basket of goods used and the relative proportions used to deflate the GDP figure.
• Cross-border comparisons of GDP can be inaccurate as they do not take into account local differences in the quality of goods, even when adjusted for purchasing power parity. This type of adjustment to an exchange rate is controversial because of the difficulties of finding comparable baskets of goods to compare purchasing power across countries. For instance, people in country A may consume the same number of locally produced apples as in country B, but apples in country A are of a more tasty variety. This difference in material well being will not show up in GDP statistics. This is especially true for goods that are not traded globally, such as housing.
• As a measure of actual sale prices, GDP does not capture the economic surplus between the price paid and subjective value received, and can therefore underestimate aggregate utility.

Simon Kuznets in his very first report to the US Congress in 1934 said:^[4]

...the welfare of a nation can, therefore, scarcely be inferred from a measure of national income...

In 1962, Kuznets stated:^[25]

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.

Lists of countries by their GDP

• 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 growth
• List of countries by GDP (real) growth rate, (per capita)
• List of countries by GDP sector composition
• List of countries by future GDP estimates (PPP), (per capita), (nominal)

List of newer approaches to the measurement of (economic) progress

• Human development index (HDI) – up until 2009 report HDI used GDP as a part of its calculation and then factors in indicators of life expectancy and education levels. In 2010 the GDP component has been replaced with GNI.
• Genuine progress indicator (GPI) or Index of Sustainable Economic Welfare (ISEW) – The GPI and the ISEW attempt to address many of the above criticisms by taking the same raw information supplied for GDP and then adjust for income distribution, add for the value of household and volunteer work, and subtract for crime and pollution.
• Gross national happiness (GNH) – GNH measures quality of life or social progress in more holistic and psychological terms than GDP.
• European Quality of Life Survey – The survey, first published in 2005, assessed quality of life across European countries through a series of questions on overall subjective life satisfaction, satisfaction with different aspects of life, and sets of questions used to calculate deficits of time, loving, being and having.^[26]
• Gross national happiness – The Centre for Bhutanese Studies in Bhutan is working on a complex set of subjective and objective indicators to measure 'national happiness' in various domains (living standards, health, education, eco-system diversity and resilience, cultural vitality and diversity, time use and balance, good governance, community vitality and psychological well-being). This set of indicators would be used to assess progress towards gross national happiness, which they have already identified as being the nation's priority, above GDP.
• Happy Planet Index – The happy planet index (HPI) is an index of human well-being and environmental impact, introduced by the New Economics Foundation (NEF) in 2006. It measures the environmental efficiency with which human well-being is achieved within a given country or group. Human well-being is defined in terms of subjective life satisfaction and life expectancy while environmental impact is defined by the Ecological Footprint.
• OECD Better Life Index - The better lives compendium of indicators produced in 2011 reflects some 10 years by the organisation to develop a wider of set of indicators more closely attuned to the measurement of wellbeing or welfare outcomes. There is felt to be considerable convergence (in 2011) in high income countries about the kinds of dimensions that should be included in such multi-dimensional approaches to welfare measurement - see for instance the capabilities measurement research project capabilities approach.
• Composite Wealth Indicators – Namely yearly material wealth (an amended version of GNI to include depletion of natural resources and the costs of pollution), biological wealth (measured through life expectancy) and thus expected material wealth (or physical wealth), a linear combination of biological and yearly material wealth (the amount of material wealth expected to be produced by an individual during his/her lifetime).^[27]
• Future Orientation Index - Tobias Preis et al. used Google Trends data to demonstrate that Internet users from countries with a higher per capita gross domestic product (GDP) are more likely to search for information about the future than information about the past. The findings, published in the journal Scientific Reports, suggest there may be a link between online behaviour and real-world economic indicators.^[28][29][30] The authors of the study examined Google search queries made by Internet users in 45 different countries in 2010 and calculated the ratio of the volume of searches for the coming year (‘2011’) to the volume of searches for the previous year (‘2009’), which they call the ‘future orientation index’.^[31] They compared the future orientation index to the per capita GDP of each country and found a strong tendency for countries in which Google users enquire more about the future to exhibit a higher GDP. The results hint that there may potentially be a relationship between the economic success of a country and the information-seeking behaviour of its citizens online.
• World Governance Index - Basing their work on the United Nations Millennium Declaration, which was the subject of unprecedented U.N. consensus among the heads of state and government who adopted it in 2000, a team of researchers of the Forum for a new World Governance (FnWG) focused its research on the five main concepts defining the application framework of world governance and constituting key goals to be reached by 2015: Peace and Security; Democracy and Rule of Law; Human Rights and Participation; Sustainable Development and Human Development

Criticisms

This section requires expansion. (February 2012)

Austrian School economist Frank Shostak has argued that GDP is an empty abstraction devoid of any link to the real world, and, therefore, has little or no value in economic analysis. Says Shostak:^[32]

The GDP framework cannot tell us whether final goods and services that were produced during a particular period of time are a reflection of real wealth expansion, or a reflection of capital consumption. For instance, if a government embarks on the building of a pyramid, which adds absolutely nothing to the well-being of individuals, the GDP framework will regard this as economic growth. In reality, however, the building of the pyramid will divert real funding from wealth-generating activities, thereby stifling the production of wealth.

So what are we to make out of the periodical pronouncements that the economy, as depicted by real GDP, grew by a particular percentage? All we can say is that this percentage has nothing to do with real economic growth and that it most likely mirrors the pace of monetary pumping. We can thus conclude that the GDP framework is an empty abstraction devoid of any link to the real world.

Many environmentalists argue that GDP is a poor measure of social progress because it does not take into account harm to the environment.^[33][34]

See also

Annual average GDP growth Chained volume series Circular flow of income Gross output 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 economic reports by U.S. government agencies Misery index (economics) National average salary Production (economics) Potential output Real gross domestic product

Bibliography

• Australian Bureau for Statistics, Australian National Accounts: Concepts, Sources and Mathods, 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.

References

1. ^ Based on the IMF figures (2010-2011). If no number was available for a country from IMF, CIA figures (2010-2011) were used.
2. ^ O'Sullivan, Arthur.
3. ^ French President seeks alternatives to GDP, The Guardian 14-09-2009.
   European Parliament, Policy Department Economic and Scientific Policy: Beyond GDP Study PDF (1.47 MB)
4. ^ ^{a b} Congress commishened 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 7. http://library.bea.gov/u?/SOD,888
5. ^ Dickinson, Elizabeth. "GDP: a brief history". ForeignPolicy.com. Retrieved 25 April 2012.
6. ^ 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.
7. ^ 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 Capital Consumption Adjustment (CCAdj) and Inventory Valuation Adjustment (IVA) are applied to the proprietor's income and corporate profits terms; and CCAdj is applied to rental income.
8. ^ 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.)
9. ^ Concepts and Methods of the United States National Income and Product Accounts, chap. 2.
10. ^ BEA, Concepts and Methods of the United States National Income and Product Accounts, p 12.
11. ^ Australian National Accounts: Concepts, Sources and Methods, 2000, sections 3.5 and 4.15.
12. ^ This and the following statement on entitlement to compensation are from Australian National Accounts: Concepts, Sources and Methods, 2000, section 4.6.
13. ^ Concepts and Methods of the United States National Income and Product Accounts, page 2-2.
14. ^ Concepts and Methods of the United States National Income and Product Accounts, page 2-2.
15. ^ Australian National Accounts: Concepts, Sources and Methods, 2000, section 4.4.
16. ^ Concepts and Methods of the United States National Income and Product Accounts, page 2-2; and Australian National Accounts: Concepts, Sources and Methods, 2000, section 4.4.
17. ^ ^{a b} Concepts and Methods of the United States National Income and Product Accounts, page 2-4.
18. ^ Concepts and Methods of the United States National Income and Product Accounts, page 2-5.
19. ^ 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."
20. ^ United States, Bureau of Economic Analysis, Glossary, "GDP". Retrieved November 2009.
21. ^ "U.S. Department of Commerce. Bureau of Economic Analysis". Bea.gov. 2009-10-21. Retrieved 2010-07-31.
22. ^ "National Accounts". Central Bureau of Statistics. Retrieved 2011-06-29.
23. ^ 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.
24. ^ "Eric Zencey-G.D.P. R.I.P.". Nytimes.com. August 2009. Retrieved 2011-01-31.
25. ^ Simon Kuznets. "How To Judge Quality". The New Republic, October 20, 1962
26. ^ "First European Quality of Life Survey".
27. ^ See Emanuele Felice, Neither dashboard nor 'mashup' indices: an empirical wealth approach as a pathway to a comprehensive measure of development, http://www.h-economica.uab.es/wps/2012_01.pdf
28. ^ Tobias Preis, Helen Susannah Moat, H. Eugene Stanley and Steven R. Bishop (2012). "Quantifying the Advantage of Looking Forward". Scientific Reports 2: 350. doi:10.1038/srep00350. PMC 3320057. PMID 22482034.
29. ^ Paul Marks (April 5, 2012). "Online searches for future linked to economic success". New Scientist. Retrieved April 9, 2012.
30. ^ Casey Johnston (April 6, 2012). "Google Trends reveals clues about the mentality of richer nations". Ars Technica. Retrieved April 9, 2012.
31. ^ Tobias Preis (2012-05-24). "Supplementary Information: The Future Orientation Index is available for download". Retrieved 2012-05-24.
32. ^ Frank Shostak. "What is up with the GDP?".
33. ^ The Virtues of Ignoring GDP http://www.thebrokeronline.eu/Articles/The-virtues-of-ignoring-GDP
34. ^ The Rise and Fall of G.D.P. http://www.nytimes.com/2010/05/16/magazine/16GDP-t.html?pagewanted=all

External links

Wikimedia Commons has media related to: Gross domestic product

Global

• World GDP Chart (since 1960)
• Australian Bureau of Statistics Manual on GDP measurement
• GDP-indexed bonds
• GDP scaled maps
• Euro area GDP growth rate (since 1996) as compared to the Bank Rate (since 2000)
• World Development Indicators (WDI)
• Economist Country Briefings
• UN Statistical Databases
• Is Life Getting Better : What is GDP? Pamphlet describing the basic idea of GDP, from OECD's Measuring Progress project.

Data

• Thermal Maps of the World Nominal GDP in US$ purchasing power parity from the EIU 2007–2010
• Bureau of Economic Analysis: Official United States GDP data
• Historicalstatistics.org: Links to historical statistics on GDP for different countries and regions
• Historical US GDP (yearly data), 1790–present
• Historical US GDP (quarterly data), 1947–present
• OECD Statistics
• Google – public data: GDP and Personal Income of the U.S. (annual): Nominal Gross Domestic Product

Articles and books

• 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?
• Limitations of GDP Statistics by Schenk, Robert.
• whether output and CPI inflation are mismeasured, by Nouriel Roubini and David Backus, in Lectures in Macroeconomics
• Fengbo Zhang – the founder of China GDP
• Chapter 22 of Dr. Roger A. McCain's Essential Principles of Economics: A Hypermedia Text
• Rodney Edvinsson, Growth, Accumulation, Crisis: With New Macroeconomic Data for Sweden 1800–2000 PDF
• 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
• Stiglitz, JE, Progress, what progress? in OECD Observer No272 March 2009

[show] v t e Lists of countries by GDP rankings

[show] v t e Economic classification of countries