secondary data research

1. GDP - Indicator of
Economic Growth
Dr. R. MuthuKrishnaveni
Assistant Professor, SBKC, APK

2. GDP
– What is GDP?
– How to Calculate?
– Type of GDP
– GDP from 2010 to 2018*
– GDP Growth Rate 2010 to 2018*
– Sectoral Break up
– GDP per capita
– GDP per capita and its Growth rate 2010 to 2018*
– GDP Projection by IMF
* - Data avail only up to 2018

3. What is GDP?
– Gross Domestic Product(GDP) means the sum total of all goods and services
produced in a country, expressed in money terms, during a specific period,
generally an year. It is a vital macroeconomic parameter both as an indication of
the capacity of the Economy as also its efficiency.

4. How to Calculate?
– The folllowing equation is used to calculate GDP:
– GDP=Private consumption+ gross investment + government investment +
government spending + (exports - imports)

5. Type of GDP
– Real GDP
– One way is to keep the price fixed at a base year and compute the GDP. This gives us
what is known as Real GDP which reflects the variation in the quantity of goods and
service against fixed price of the base year. In case of the Indian Economy the base
year is 2011-12.
– Nominal GDP
– When GDP is computed using Current market prices it is called Nominal GDP. Real
GDP reflects economic growth more from the Government perspective and is
beneficial for comparison. Nominal GDP is what effects citizens more directly.

6. GDP from 2010 to 2018
1675.62
1823.05 1827.64 1856.72
2039.13 2103.59
2290.43
2652.55 2726.32
0
500
1000
1500
2000
2500
3000
2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP IN BILLION USD

7. GDP Growth Rate 2010 to 2018
8.498
5.241
5.456
6.386
7.41
7.996 8.17
7.168
6.811
2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP GROWTH RATE

8. Sectoral Break up
– Agriculture:17%
– Industry:29%
– Service:30%

9. GDP Per capita
– Gross Domestic Product (GDP) per capita shows a country's GDP divided by its
total population.

10. GDP per capita and its Growth
Rate 2010 to 2018
1,423
1,498 1,482 1,486
1,574 1,606
1,729
1,981 2,010
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP Per capita in USD 23.40%
5.30%
-1.10%
0.30%
5.90%
2.00%
7.70%
14.60%
1.50%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018

11. GDP Projection by IMF
2972
3257.72
3577.32
3924.11
4306.29
4729.32
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2019 2020 2021 2022 2023 2024
PROJECTED GDP IN BILLION USD

12. Conclusion
– Gross Domestic Product (GDP) is one of the most widely used measures of an
economy’s output or production.
– GDP is an accurate indication of an economy's size. The GDP growth rate is
probably the single best indicator of economic growth. However, GDP per capita
has a close correlation with the trend in living standards over time.