GDP Full Form

What is The Full Form of GDP 

The full form of GDP is Gross Domestic Product. It is the monetary value of the goods & services that have been produced in a country during a year. The scope of these goods and services is restricted to the country’s geographical location. GDP is considered to be a crucial indicator of the economic status of a country and the size of an economy. GDP is the most common metric that also determines the economy’s performance.

Growth of GDP would be considered as higher economic transactions and an increase in spending. The investors and fund managers also consider GDP to make critical investment decisions.

History of GDP

The GDP was developed by Simon Kuznets who is an American Economist. This concept was developed in 1934. Since the Bretton Wood Conference of 1944, GDP has been considered a gold standard indicator of a country’s economic growth.

Calculation of GDP

The formula of GDP is Y = C + I + G + (X – M) where –

Y = GDP

C = Consumption

I = Investment

G = Government Spending

X = Exports

M = Imports

In addition, there are three methods to calculate the GDP. These are the Output Approach, Income Approach, and Expenditure Approach. GDP is also of different types, which include Nominal GDP and Real GDP.