What is global GDP?
Global GDP or Hrube Domestic Product is a measurement of the value of all economic production on the planet during a particular year. It is the total market value of all goods and services produced at the appropriate time. The growth of gross domestic product is commonly used as a level of economic growth. Since 2010, global GDP has been estimated at about $ 74.5 trillion (USD). GDP calculations can be based on estimates of total expenditure, total income or total value added during the production process. Statistics of gross domestic product of individual nations are usually formed by the authority of the national government of this country, such as the Office for Economic Analysis in the United States.
Determination of global GDP is complicated difficult to compare GDP of different countries. This may be problematic because the exchange rates of different currencies change over time, which means that the gross domestic product of one country measured in the currency of another country canOlísat due to changes in exchange rate without changes in real economic activity. This is compensated by a method called Purity of Purity (PPP), which counts, how much the same set of goods would cost in different countries in their own currencies to get a better idea of how much the amount of each currency can buy and make international comparisons more relevant.
Use of GDP itself as a prosperity measurement can be misleading. For example, if property is damaged or destroyed by war, crime or natural disasters, economic production produced to repair or replace everything that has been damaged or destroyed, the numbers towards GDP as any other productive economic activity. If the economic aczing increase in lifetime due to increased demand for goods and services to repair damage will be destroyed to increase global GDP, although the total wealth in the world has actually decreased. Something similar applies to economic activity that is constantly found in responseEven to damage or threaten damage to people or property, such as medical treatment of diseases, protection against crime or psychological counseling for trauma victims. If the problems that have become valuable these goods and services were alleviated or eliminated, a decline in the production of these goods due to reduced demand would be calculated as a decrease in HDP
Global GDP also excludes some productive activities. GDP statistics are based on data designed by governments, so in underground or black market economic activity, which can be an important part of the economic life of many people in some parts of the World is not included. The market value of goods and services that are not sold for money are also excluded. GDP also leaves changes in the quality of objects; For example, a $ 2,000 personal computer, modified by inflation, would add in 1995 as a GDP as a $ 2,000 computer in 2011, contributes to GDP in 2011, although the 2011 computer is very excellent withlifting.