What is GDP
GDP is the abbreviation of GrossDomesticProduc in English. It is translated into Chinese as GDP and is recognized as an important indicator for measuring a country's overall economic status. It can not only reflect a country's economic status, but also reflect a country's national strength and wealth. GDP refers to the final sum of the value of a country or region produced and labor services within a certain period of time. It reflects the total amount of newly created material wealth in a country or region within a certain period of time. To put it bluntly, GDP is how much money has flowed in our hands within a certain period of time, whether it is fast or slow. There are three methods for accounting for
GDP into
GDP, namely production method, income method, and expenditure method. The three methods reflect the results of national economic production activities from different angles. Theoretically, the accounting results of the three methods are the same. GDP calculation includes consumption, private investment, government expenditure, net exports, and formula GDP=CA+I+CB+X in sequence. How are consumption, private investment, government expenditure, and net exports included? What expenditures are included in our daily life? red represents consumption, green represents investment, blue represents government expenditure, purple represents export,
consumption. We usually buy daily necessities, clothing, food, taxis, travel, etc. To be more complicated, the goods and clothing we buy at small stalls are not included in GDP. Small vendors do not have business licenses and cannot be included. Small vendors are already recorded in GDP when they wholesale goods. After we buy small vendors' goods at low prices, the small vendors will have money and will actively consume, promote the economy, thereby increasing the GDP digital value. However, the business of physical stores is not easy. To give a brief example, the tomato and eggs grown by farmers were sold to supermarkets for 3 yuan. I spent 5 yuan to buy tomato and eggs in supermarkets. I made tomato and eggs into vegetables and bought 10 yuan in restaurants. Finally, the tomato and eggs were eaten by customers. The total GDP was recorded in 18 yuan. If I go home and eat them myself, it will be included in GDP. Of course, it is not only that. Farmers buy seeds and fertilizers, and enterprises produce seeds and fertilizers, and other major cycles will add GDP measurement.
investment refers to the funds invested by the entity in order to achieve a certain purpose in a certain field, usually using enough funds to earn more returns or increase the value of the funds. Investing is to replace one asset and turn it into another; investment is usually accompanied by risks. Investment includes a lot of investment. If you invest in friends or you raise funds to build factories, do business, catering, physical clothing stores, etc., investment in the primary market, of course, you buy the right stocks, funds, bank wealth management deposit rates, etc. in the secondary market, and the bidding for futures market transactions is not included in the GDP pair. Only when the services are provided to the delivery date can GDP be calculated. For example, in 2001, I spent 1 million yuan to buy a property for rent to others, which is called nominal investment. The furniture and appliances you purchase need to be decorated after purchase. The furniture and appliances purchased are all shadows of consumption, but you can also be called nominal investment; they will be included in GDP, and the rent paid by tenants will not continue to be included in GDP. House prices have risen to 20 million in 2020. If I sell the house, it will not be included in GDP. Most second-hand market transactions are not included in GDP, second-hand mobile phones, second-hand houses, second-hand cars, scalpers, etc.
Government expenditure. Fundamental construction expenditure, enterprise potential reconstruction funds, science and technology expenses, agricultural expenditure, forestry expenditure, water conservancy and meteorological expenditure, industrial and transportation departments, education expenses, science expenses, health expenses, pensions and social welfare relief expenses, social security subsidy expenditures, national defense expenditures, administrative management expenses, diplomatic and foreign affairs expenditures, public security, procuratorial, judicial and judicial expenditures, expenditures to support underdeveloped areas, debt principal and interest expenditures, etc. Government mobile payments are not included in GDP because the government only transfers simple taxes to another person, and there is no exchange of goods and services in the middle process, such as relief funds for disabled people, etc.
net exports. It is simple to understand that "net" exports are equal to the total export minus the total imports, and the final result is whether positive or negative will be included in GDP. For example: my country imports 100,000 yuan of goods this year, while my country exports 12 trillion yuan this year. Export minus imports is 12 trillion yuan, which means 12 trillion yuan minus 10 trillion yuan equals 2 trillion yuan. Then this 2 trillion yuan will be included in GDP. If you are interested, you can search for soybean war and about import trade. What other concepts do
GDP include?
1. Green economy GDP, that is, "green GDP", that is, the remaining GDP after deducting the value of natural resource consumption reduction and environmental pollution loss from GDP, is also called sustainable development GDP.
2. Per capita GDP, that is, "per capita GDP", is the ratio of the GDP achieved by a country or region during the accounting period to the permanent population within its scope. Per capita GDP is a standard for measuring the living standards of a country. Green economy GDP, or "green GDP", is the remaining GDP after deducting the value of natural resource consumption reduction and environmental pollution loss from GDP, which is also called sustainable development GDP. From this, it is not difficult to find that the total GDP determines a country's overall economic strength and market size. Per capita GDP reflects the wealth of a country's citizens, while green GDP shows the size of a country's economic sustainable development capacity.
