GDP
is one of the great inventions of the 20th century. It is the single
most important number that is used by all economic agents to compare the
economic strengths of nations. It is exactly 80 years since the term ‘GDP’ was
coined by Nobel laureate Simon Kuznets, who was a Russian-American economist.
GDP
stands for Gross Domestic Product. It is the total value of all goods produced
and services provided within a country. As a single number, GDP reflects the
overall economic activity in a country. The GDP numbers are expressed in real
(after inflation) terms. The GDP figures are revealed every quarter by the
government authorities after compiling the national accounts.
Of
course, there are skeptics who question the validity of using GDP to measure
the well-being of a nation. Let us talk about that in a later post. For the
time being, let us be ‘happy’ with this GDP figure!
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Disclaimer: The author is an investment analyst, equity
investor and freelance writer. This write-up is for information purposes only
and should not be taken as investment advice. He blogs at:
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