GDP Calculator
Gross Domestic Product(GDP)is a basic measure of a countrys economic performance and is the market value of all final goods and services made within the borders of a nation in a year.
About the GDP Calculator
Calculate gross domestic product (GDP) with the expenditure approach from its five components: personal consumption, gross investment, government consumption, exports and imports.
How it is calculated
GDP = C + I + G + (X − M)
GDP measures the value of all final goods and services produced in a country. In the expenditure approach it is the spending of households (C), businesses (I) and government (G), plus net exports – exports (X) minus imports (M). All components must be in the same currency and for the same period.
Example
With consumption of 14,000, investment of 3,500, government spending of 3,800, exports of 2,500 and imports of 3,000 (in billions), GDP is 14,000 + 3,500 + 3,800 + 2,500 − 3,000 = 20,800 billion.
Frequently asked questions
Why are imports subtracted?
Imports are included in consumption and investment but were produced abroad, so they are removed to count only domestic production.
What is the difference between nominal and real GDP?
Nominal GDP uses current prices; real GDP removes the effect of inflation to compare years.
Are there other ways to calculate GDP?
Yes, the income approach and the production (value added) approach give the same result in theory.