GDP - Gross Domestic Product (GDP)
A macroeconomic indicator reflecting the market value of all final goods and services (that is, intended for direct use) produced per year in all sectors of the economy in the state for consumption, export and accumulation, regardless of the nationality of the factors of production used.
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Main article: World Economy
The economist Russia Semyon Kuznets created the traditional formula for calculating gross domestic product in the early 1930s.
GDP per capita by purchasing power parity (PPP)
Gross domestic product calculated at purchasing power parity. The English equivalent of the term is Gross Domestic Product At Purchasing Power Parity.
World Bank definition: GDP per capita is calculated by purchasing power parity (PPP). PPP GDP is the gross domestic product calculated in international dollars using estimated purchasing power parity measures. The international dollar has the same purchasing power to GDP as the US dollar has in the United States of America. PPP GDP is the sum of gross product created by all residents in the economy, to which all taxes on goods are added and from which any subsidies not included in the value of goods are deducted. It is calculated without deductions for depreciation or depletion of natural resources.
Rating of countries of the world by GDP by PPP
Differences from VNP
Gross national product (GNP) is calculated in the same way as GDP, but differs from it by an amount equal to the balance of settlements with foreign countries.
GNP differs from GDP in that it uses the criterion of national ownership. That is, the products of the plant, which are owned, say, by the Germans, on the territory of Russia will be included in Russian GDP, but not in GNP. A close look at Central Europe, for example, shows that in the last 10 years GDP has grown much faster than GNP - production works, but does not belong to the "country"[1].
Countries' GDP
2023: Countries by GDP growth in a year, 4 years and 10 years
The Spydell Finance comparison table will clearly compare the trends and economic successes of the world's leading countries from 2013 and 2019 to 2023.
Data for 2023 is presented on the basis of the IMF forecast in September 2023. Although there is a risk of disruption of the global economy if a sudden shock is realized in the debt market, this will not change the overall disposition.
The accumulated growth of Russia's GDP from 2019 to 2023 inclusive amounted to 4.3% (the IMF forecast in the table is 2.2%, as always was underestimated in relation to the Russian Federation). Over 10 years, the Russian economy has grown by 10.4%. Given the circumstances of relentless pressure on the country, the result is outstanding.
The US economy was the most stable and successful among Western countries in terms of accumulated GDP growth during this period. Over 4 years, US GDP grew by 7.3%, while Germany's accumulated GDP growth was 0.5%, in Japan - 0.9%, in Britain about zero (plus 0.1%), in France an increase of 1.6%, in Canada - plus 4.4%, in Spain - plus 2.4%.
The United States managed to quickly suspend shutdowns during the COVID-19 pandemic in 2020, launch monetary pumps at full capacity, masterfully dumping dollar inflation outside, while becoming one of the main beneficiaries of the energy crisis in Europe. Now the US is actively raising capital on a rate differential and creative class, with a reputation as a "quiet haven."
The most successful economy among developing countries is the Chinese economy, which grew by 19% from 2019 to 2023 inclusive (4 years). An increase of 24.5% in Turkey is doubtful due to the inadequate calculation of deflators - when inflation of hundreds of percent is wrong by a couple of tens of percent is not such a problem, Spydell Finance wrote. The same applies to Iran, where the declared growth of 15.6% is also a doubt about the quality of calculations.
India grew by 17.1%, Indonesia - plus 12.3%, Brazil - growth by 7.7%, Mexico - plus 3.6%, Saudi Arabia - plus 8.9%.
2022: World GDP according to IMF estimates
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According IMF to estimates in 2022, the top five countries leaders in terms of GDP USA(,,, and China) Japan Germany India accounted for 51% of world GDP, the volume of which is estimated at $101.6 trillion.
2021: World GDP according to IMF estimates
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At the end of 2021, the total GDP of the United States and China is 42% of world GDP.
2020: Countries by GDP dynamics
2018: Countries by nominal GDP
Finding an alternative to GDP
The methods of calculating GDP have changed many times, and each country could do everything in its own way. In some states, when calculating GDP, the so-called "conditional rent" was taken into account, which took into account payments for rental housing, even if it belongs to you, others did not take it into account, but in general, the formula developed by an economist from Russia worked properly.
The onset of the era of universal digitalization and the emergence of entire sectors of the economy operating exclusively on the Internet gave impetus to the search for new approaches to calculating the created goods and services, as well as the well-being of citizens. The famous American economist, Nobel Prize winner Joseph Stiglitz bluntly stated that the huge social stratification in the United States makes the previous approach to assessing national wealth meaningless and it is necessary to develop a more "honest indicator" of calculating economic growth that would reflect new realities.
There are several alternative methods for assessing economic growth and national wealth, in particular the so-called "green GDP," when the cost of environmental costs is deducted from the traditional gross product. And in some countries they can reach very high values and seriously adjust the benign picture of economic growth. But how to compensate for the consequences of environmental disasters or natural disasters? Indeed, to eliminate these very consequences, one way or another, it will be necessary to spend work and certain resources. And they must first be produced. And if they were already produced, and then used, then this is a second bill. As a result, the ends do not meet in any way.
Another alternative to traditional GDP is the so-called genuine progress indicator, or GPI. Its calculation traditionally takes into account the value of all goods and services produced in monetary terms, but then the long-term effect of durable goods and unpaid domestic work is added here, and the costs of corruption, crime and environmental degradation are deducted. It also takes into account the degree of property stratification of society, the level of public debt and the degree of demographic burden on the economy. True, how to correctly calculate the contribution to GDP from washing and cleaning an apartment and correctly deduct the costs of corruption and organized crime from the total product, so far no one has really explained.
At the Davos Economic Forum in 2017, an inclusive development index was presented. It takes into account not only the created national product, but also 11 more parameters, including labor productivity, the size of the public debt, average life expectancy, unemployment rate, the number of citizens living below the poverty line, etc. Then there's the happiness index, the hedonistic index and the true progress index.
All these indices in one way or another reflect changes in the consciousness of modern society, which is increasingly oriented towards meeting human needs, and not abstract figures of economic growth. They can supplement traditional GDP, but replace such an aggregated indicator as gross domestic product, as of 2019, is still unlikely to be in a state.
See also
Notes
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