In this article we will discuss about Economics, What is GDP? How do we calculate GDP of a country? Which country has the highest GDP in the whole world. There are many countries who did not count GDP of it's country and measure happiness index instead of GDP. Be tight and let's begin.
What is GDP?
It is the total measure of goods and services with respective to its market value produced in a country/nation in the given timeline further the time line is divided in quarters and each quarter is of 3-months. 4 quarters is equal to one financial year. For every country It's financial year starts at different months let's talk about India, India's financial year starts in April of Gregorian Calendar. For every it may differ.
How do we calculate GDP of a country?
Calculation of GDP of a nation is difficult but not very difficult it requires some long and complicated calculations. The formula is "total good manufactured + total consumers spending + investment + Export - Import" X-Y. although GDP is usually calculated annually, it is sometimes calculated quarterly. In the U.S., for example, the government provides an annual GDP estimate for each financial quarter and the calendar year. The individual data sets included in this report are presented in real terms, so the data is subject to price changes and, as a result, is a residual inflation.
India's GDP Growth rate for Quarter 2 was 8.7% it is very impressive it seems Indian economy is rocket booming with a J-Curve last year the rate was -7.2% due to lockdown and covid-19 pandemic all the manufacturing hubs and factories were closed but this year everything is open and people are spending much on the accessories. Soon India will cross $5 trillion economy by 2026 with the current government policies. Good luck for India for it's bright future.
USA has the largest economy in the terms of GDP(PPP) which is around $22 trillion followed by China and India. In terms of nominal GDP USA stays at top position followed by China and Japan.
Countries like Bhutan don't even count their GDP instead they measure happiness because they believe to be more happy instead of being rich 'Money can't buy you happiness'.
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