What Are the Different Problems with GDP?
Nominal GDP (Nominal GDP), also called monetary GDP, is the market value of all final products calculated using the current prices of goods and services produced. There can be two reasons for the change in nominal GDP: one is the change in real output, and the other is the price. In other words, changes in nominal GDP reflect both changes in real output and changes in prices.
Nominal GDP
Real GDP refers to the market value of all final products in which the prices of goods and services produced in the current year are calculated at base year prices. Since the prices of the same products will vary from year to year, historical comparisons of national income cannot be made if nominal GDP is used. In order for a country or region's GDP to be comparable in different years, it needs to be based on the price level of a certain year, and the GDP of each year is calculated at this price level. This particular year is the base year, and the price level of the base year is the so-called constant price. The value of the final product in each year calculated based on the constant price of the base year is the actual GDP. The relationship between nominal GDP and real GDP can be expressed as:
Nominal GDP =
Nominal GDP refers to the sum of the prices of domestic products and services in a given period calculated at current market prices.
Real GDP refers to the actual value of all output produced in different periods under the same price or currency value.
Real GDP = nominal GDP / GDP
The bottoming process of nominal GDP and real GDP is not the same process. Before and after nominal GDP bottoms, it will face the transition from inflation to deflation. Fundamentally, this is a period of economic downturn
| Serial number | country / region) | 2011 GDP (US $ billion) | Mid-year population (10,000 persons) | GDP per capita in 2011 (USD) |
| 1 | Seven western countries | 336,815.76 | 74,452.1 | 45,239 |
| 2 | EU | 175,976.55 | 50,304.51 | 34,982 |
| 3 | Four Little Dragons | 20,867.75 | 8,529.66 | 24,465 |
| 4 | China Circle | 80,473.44 | 137,498.91 | 5,853 |
| 5 | BRICS | 138,800.39 | 296,505.20 | 4,681 |
Ranking of the top 25 in 2011: [3]
| Serial number | country / region) | 2011 GDP (US $ billion) | Mid-year population (10,000 persons) | GDP per capita in 2011 (USD) |
| 1 | United States | 150,940.00 | 31,204.0 | 48,372 |
| 2 | China Mainland | 73,011.09 | 134,413.8 | 5,432 |
| 3 | Japan | 58,729.31 | 12,782.0 | 45,947 |
| 4 | Germany | 35,785.54 | 8,177.7 | 43,760 |
| 5 | France | 27,775.00 | 6,517.6 | 42,616 |
| 6 | Brazil | 24,746.24 | 19,237.9 | 12,863 |
| 7 | United Kingdom | 24,211.52 | 6,267.5 | 38,630 |
| 8 | Italy | 21,996.38 | 6,073.9 | 36,215 |
| 9 | India | 18,392.81 | 123,500.0 | 1,489 |
| 10 | Canada | 17,378.01 | 3,429.4 | 50,674 |
| 11 | Russia | 18,570.00 | 14,294.8 | 12,991 |
| 12 | Spain | 14,941.49 | 4,726.8 | 31,610 |
| 13 | Australia | 14,889.69 | 2,262.1 | 65,824 |
| 14 | Mexico | 11,535.66 | 11,355.9 | 10,158 |
| 15 | Korea | 11,171.47 | 4,981.1 | 22,428 |
| 16 | Netherlands | 8,401.21 | 1,669.6 | 50,319 |
| 17 | Turkey | 7,722.98 | 7,395.2 | 10,443 |
| 18 | Indonesia | 8,462.45 | 23,844.6 | 3,549 |
| 19 | Switzerland | 6,363.75 | 791.7 | 80,385 |
| 20 | Belgium | 5,136.08 | 1,095.1 | 46,901 |
| twenty one | Poland | 5,143.06 | 3,822.0 | 13,456 |
| twenty two | Sweden | 5,380.83 | 944.8 | 56,952 |
| twenty three | Saudi Arabia | 5,768.25 | 2,837.6 | 20,328 |
| twenty four | Taiwan, China | 4,668.81 | 2,319.4 | 20,129 |
