Gross Domestic Product

Group 6
Yifan Du
Chi Yan Jim
Samson 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 (exportsImports)

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

How?

1. Production

2. Income
3. Expenditure

1. Production
GDP

at producer price

GDP at factor cost + indirect taxes subsidies on products

GDP 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 investments
G government purchases
X exports
M imports

3. Income
Total factor income = employee compensation +
corporate profits + proprietors income + rental income
+ net interest
GDP = R + I + P + SA + W
R rents
I interests
P profits
SA statistical adjustments
W wages

Whats behind Chinas 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 marketoriented 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