See what “GRP” is in other dictionaries. GDP: A Very Important Indicator Gross Regional Product how to calculate
Economy
Probably every second person knows that the abbreviation GDP, often found in the media, stands for gross domestic product and that this is a very important indicator economic development any state. Accordingly, if the GDP is large, then things are going well in this state, but if it’s the other way around, it doesn’t matter. This is probably where the awareness of most of us ends. What does GDP reflect and how is it calculated? Which countries' economies still have Russia's GDP to grow and grow, and how does GDP differ from GRP (gross regional product)? “GC” answers these and other questions in the “Popular Economics” section.
Where does everything come from?
There are various macroeconomic indicators that reflect the dynamics of the country’s economy as a whole, but, as the expert explains, one of the most popular is GDP - “an indicator that represents the sum of the final production of all enterprises in the country for a certain period, usually a year.”
A common way to calculate GDP is by value added. That is, by how much was added at each stage of the production process - from raw materials to the finished product. This is the production method of calculating GDP. There is another, quite simple way - based on the income that all economic entities have and which can be summed up. But the income of some is always the expenses of others, so another method of calculation is by costs. Consumer expenses, investment expenses (they are borne by enterprises in connection with the acquisition of new equipment, for example), government expenses and such an element of total expenses as “net exports” are taken into account and summed up. "
“Net exports are the difference between exports and imports, and this is the same element of the aggregate demand for the products of our industry,” says Andrei Kotov. – If we increase exports, then net exports will grow accordingly: an increase in demand leads to an increase in GDP.
Shadow economy and the “paradox of thrift”
It is generally accepted that GDP is, of course, good, but not ideal: there are a number of specific problems associated with its calculation:
– The first and most famous is the shadow economy. You need to understand that there is a certain “piece” that is in the shadows, outside the field of statistics. This is very serious problem, including for our region. Some of our indicators are officially very low, and if you look at cars, shops and other factors of consumer demand, it becomes clear that there is a shadow economy here.
Another problem associated not simply with calculating GDP, but with increasing its volume, is the “paradox of thrift.” “Let’s imagine that a family lives by its own household,” explains Andrei Kotov, “the wife does everything herself, they don’t eat in cafes or restaurants, the husband also makes everything with his own hands and does not use the services of repair services. Such frugality, paradoxically, leads to a certain decrease in GDP. And the lack of frugality, of course, indirectly – through consumption, has a positive effect on production growth.”
"Quality" and "quantity"
“GDP is a quantitative indicator, not a qualitative one,” the expert notes. – The economy must still take into account such aspects as, for example, environmental. Experience shows that in a number of countries, rapid development in terms of quantitative indicators, including GDP growth, leads to negative environmental consequences.
In addition, as the expert points out, the same volume of GDP in two countries does not mean that the well-being of people in these countries is the same. The year before last, China overtook Japan and took second place in the world in terms of GDP, but the Chinese are unlikely to have such a sweet life. The ability to talk not only about the level, but also about the quality, is provided by such an indicator as GDP per capita.
How the sandwich lit up the global economy
– Very often GDP is calculated in dollars. But, say, 1 thousand dollars in Russia, the USA, Bangladesh and India are different values. Therefore, such a concept as GDP is used according to purchasing power parity, that is, according to the ability to buy a certain product in the territory of a particular country. There are such interesting indicators as, for example, the “Big Mac Index”: this is a product that is sold in different countries and costs different amounts of money. By comparing its value, you can identify the real exchange rate of the national currency and, accordingly, calculate GDP. According to this indicator, a dollar should cost about 15–16 rubles.
GDP is like a thermometer
“You need to understand,” explains Andrey Anatolyevich, “not only the final indicator (say, GDP for the year) is significant, but also the dynamic one, for example, GDP growth over 10 years.” It gives a more accurate picture because it allows us to reduce the influence of the economic cycle (growth - decline) and market factors. GDP is like a thermometer, it shows what is, and not how it should be or how we would like it to be. Therefore, other economic indicators are also used, such as national wealth (everything that has been accumulated over many years). This is important because commodities can be sold off. In this sense, negative associations arise with the time when we simply “ate” petrodollars.
Speaking about the structure of GDP in the form in which it exists now, it is necessary to note the need to diversify the economy, that is, to reduce dependence on any one product (oil, gas) and on world market conditions, the rise and fall of prices: “Once upon a time Saudi Arabia in response to actions Soviet Union regarding the deployment of troops to Afghanistan, it simply increased oil production. Prices collapsed and budget problems turned out to be very serious. But again, it’s not GDP’s fault. There’s no point in blaming the mirror..."
Growth or development
Economic growth does not always mean development. You can produce the same thing year after year and possibly have growth. But will this be development?
– After the collapse of the USSR, volumes industrial production decreased by almost 50%, while during the Great Patriotic War– approximately by 30%. That is, the situation was worse than when a significant part of the country was occupied. Economic growth since then has been of a restorative nature, and it must be said that we are little by little reaching the production volume, and accordingly the GDP, that was before. Next, it is necessary to move, if you like, to sustainable economic development. It is impossible to completely avoid the influence of cycles and crises: our country is very bogged down in economic ties with other countries. It is unlikely that the road uphill will be absolutely smooth in terms of GDP growth rates. Foreign experience shows that a fairly strong influence of the state on the dynamics and, most importantly, the structure of GDP is necessary. It’s one thing when a significant part of GDP is formed through the export of oil, gas, ferrous and non-ferrous metals, and timber. Another is when high-tech products are being produced that are competitive both in the Russian and world markets. Therefore, it is the structure of GDP that comes to the fore. This is the requirement for diversification. On the one hand, we are talking about added value: after all, you can sell not oil and petroleum products, but goods, say, from the chemical industry. On the other hand, this is an opportunity not to depend on one market, reducing risks by distributing assets across different industries and enterprises.
GDP and GRP
Simply put, gross regional product (GRP) is the GDP of the region, although there are some differences. The specific problems that arise here are, for example, the situation of competition between subjects. A number of companies have their “headquarters” in one region, but actually operate in another or even others. Deductions, including taxes, are made at the place of registration of the company.
– Of course, the federal budget still transfers part of the funds to the region; some taxes are paid at the location of the company’s branch: for example, from employee salaries. But another part of the income goes away, the tax base is reduced. You can scold organizations for a long time for moving to another region, or you can create conditions so that they do not want to do this, so that new companies come here and register their business activities here.
As for the Voronezh region: in terms of GRP and GRP per capita, some neighbors, for example, the Belgorod region, are noticeably superior to us. But if we talk about the Lipetsk region, their successes are explained by the presence of one successful, dynamically developing enterprise - a metallurgical plant.
– The economy of the Voronezh region is more diversified, and this is a positive feature of our region. We have our own competitive advantages in agriculture, in industry, in the service sector. Although the Voronezh region is characterized as an industrial-agrarian region (industry comes first), without sustainable development of agriculture it will be impossible to talk, for example, about the development of the food industry, which is very important for the industry. This also includes a number of sub-sectors of mechanical engineering, production building materials, chemical industry, for which our region traditionally has good progress in terms of infrastructure, personnel training, scientific support, and the service sector. Voronezh is the capital of the Central Black Earth Region, therefore many interregional, transnational companies consider it as the location of their branches. A number of commercial banks have located their head offices in our city, either in the Central Black Earth Region, or even in the Central federal district. The advantage of the region is that Voronezh is one of the leaders in personnel training in the Central Federal District. I repeat: the positive properties of our region are the absence of any one area where we are unrivaled; we are strong in different industries. And, of course, these advantages need to be developed.
Potential GDP shows how much output a country could produce if all factors of production were employed, including no unemployment. Nominal GDP refers to all output produced at current prices. Real GDP takes inflation into account.
Leader in terms of GDP, according to the International Monetary Fund for 2011, traditionally remains the United States (GDP at purchasing power parity is estimated at $15,064.816 billion). Next comes China, India, Japan and Germany. Russia ranks sixth with an indicator of 2376.480 billion dollars. (
Gross regional product (GRP) is the central indicator of the system of national accounts (SNA), which characterizes the value of final goods and services produced by residents of the country for a given period. GRP is calculated in market prices of final consumption, that is, in prices paid by the buyer, including all trade and transport margins and taxes on products. GRP is used to characterize production results, the level of economic development, economic growth rates, analyze labor productivity in the economy, and so on.
Before proceeding to characterize the methods for calculating GRP, it is necessary to focus on the key points in the concept of the indicator.
First of all, GRP is an indicator of the produced product, which represents the cost of final goods and services produced. This means that the value of intermediate goods and services used in the production process (such as raw materials, supplies, fuel, energy, seeds, feed, freight transport services, wholesale trade, commercial and financial services, etc.), are not included in the GRP. IN otherwise The GRP would contain a repeat account.
Final products are goods and services that are purchased by consumers for final use rather than for resale. Intermediate products are goods and services that are further processed or resold several times before reaching the final consumer.
In order to correctly calculate total production, it is necessary that all products and services produced in a given year be counted once, and no more. Most products go through several production stages before reaching the market. As a result, individual parts and components of most products are bought and sold several times. Thus, in order to avoid multiple counting of parts of products that are sold and resold, when calculating GRP, only the market value of final products is taken into account and intermediate products are excluded.
Therefore, to avoid multiple re-invoicing, GRP should act as the cost of final goods and services and include only the value created (added) at each intermediate stage of processing.
Let's take a closer look at the concept of added value.
Value added (VA) is the value created in the production process at a given enterprise and covers the real contribution of the enterprise to the creation of the value of a specific product, i.e. wages, profits and depreciation of a particular enterprise. Therefore, the cost of consumed raw materials and materials that were purchased from suppliers, and in the creation of which the enterprise did not participate, is not included in the added value of the product produced by this enterprise.
In other words, added value is the gross output of an enterprise (or the market price of manufactured products) minus current material costs, but including deductions for depreciation (since the enterprise's fixed assets take part in creating the new value of manufactured products). IN Soviet practice this indicator was called conditionally pure production.
GRP is also a domestic product because it is produced by residents. Residents include all economic units (enterprises and households), regardless of their nationality and citizenship, that have a center of economic interest in the territory of a given country (region). This means that they are engaged in production activities or live in the economic territory of the country for a long time (at least a year). The economic territory of a country is the area administratively controlled by the government of that country within which persons, goods and money can move freely. Unlike geographical territory, it does not include territorial enclaves of other countries (embassies, military bases), but includes such enclaves of a given country located on the territory of other countries.
GRP is the gross product because it is calculated before deducting the consumption of fixed capital. Consumption of fixed capital represents a decrease in the value of fixed capital during the reporting period as a result of its physical and moral wear and tear and accidental damage that is not catastrophic in nature. In theory, domestic product should be determined on a net basis less consumption of fixed capital. However, to determine the consumption of fixed capital in accordance with the principles of the SNA, special calculations are required based on data on the replacement cost of fixed assets, their service life and depreciation by type of fixed assets. Depreciation according to data accounting not suitable for this purpose. Not all countries make such calculations, and those that do use different methods. Thus, data on GRP are more accessible and comparable between countries, and therefore GRP has become more widely used than net domestic product.
In addition to GRP in series statistics foreign countries An earlier macroeconomic indicator, the gross national product (GNP), is also used. Both of them reflect the results of activities in two spheres of the national economy: material production and services. Both determine the value of the entire volume of final production of goods and services in the economy for one year (quarter, month). These indicators are calculated in prices, both current (current) and constant (prices of a base year).
Difference between GNP and GDP(GRP) is as follows:
1) GRP is calculated on the so-called territorial basis. This is the total cost of production in the spheres of material production and services, regardless of the nationality of enterprises located on the territory of a given country;
2) GNP is the total value of the entire volume of products and services in both spheres of the national economy, regardless of the location of national enterprises (in the country or abroad).
So Thus, GNP differs from GRP by the amount of so-called factor income from the use of the resources of a given country abroad, the profit of capital invested abroad and property owned there, transferred to the country, wage citizens working abroad minus similar income of foreigners exported from the country.
Usually, to calculate GNP, the difference between the profits and income received by enterprises and individuals of a given country abroad, on the one hand, and the profits and income received by foreign investors and foreign workers in a given country, on the other hand.
This difference is very small: for leading Western countries no more than ±1% of GRP. The UN Statistical Service recommends using GRP as the main indicator.
Economic status of each subject Russian Federation makes it relevant to use a variety of tools to assess economic well-being, financial balance and conditions of competition not only in the domestic but also in the world market. These tools are extremely necessary for the implementation of effective federal policy, which is aimed at eliminating interregional imbalances and strengthening the integrity of the economy and politics. The independence of the regions leads to the actualization of regional policy and to the significance of such an indicator as the regional gross product.
Information support using GRP
Prosperity becomes a call to develop regional management solutions with modern approaches To information support and economic feasibility. The optimal basis for performance analysis market economy The system of national accounts, or SNA, is a complex type. At the regional level, the SNA appears in the SRS format (system of regional accounts). The central position in the SNA belongs to gross domestic product, or GDP. The regional analogue of GDP in the SNA is the regional gross product, or RGP. This indicator shows the level of economic development and is a kind of reflection of the results economic activity each of the economic entities within the region. GRP is used as the basis for the formation of regional accounts.
Why is GRP calculated?
On the territory of Russia there are about 89 administrative-territorial entities, localized in different time zones, differing geographical location and the level of economic and social development. GDP reflects only the general situation in the country, not allowing one to clearly see how things are in different parts of the country, which eliminates the possibility of making objective decisions. The state is interested in data that can comprehensively characterize the situation in each individual corner of the country.
Differentiated by the regional gross product, it allows us to develop an appropriate economic policy and evaluate the effectiveness of decisions made not at the country level, but at the regional level. With the help of GRP dynamics, in combination with cost and physical indicators, it is possible to establish the direction and intensity of economic processes that can serve as a strong impetus for development at the interregional level. GRP plays a big role in calculating macroeconomic indicators and in reforming interregional relations. The indicator serves as a guideline in the process of distributing funds from the “Fund for Financial Support of Subjects of the Russian Federation”.
So what is GRP?
Regional gross product is, in fact, a generalized characterizing the level of economic development of the region. It reflects and characterizes the process of production of goods and services. The volume of GRP indicates the value of all goods and services produced in all economic sectors in a particular region. At the first stages of introducing the indicator into economic analysis, data were published taking into account market prices. The assessment of GRP in the format of basic prices differs significantly from the assessment in market prices by exactly the amount of net taxes on products. Subsidies are not taken into account. GRP in the dominant workshops reflects the amount of added value in basic prices with a focus on a specific type of economic activity.
The structure of the GRP, or what it includes
Gross regional product is calculated taking into account the basic price, which is calculated per unit of goods or services. Taxes are not taken into account, but product subsidies are taken into account. Gross is calculated in each individual segment of economic activity as the difference between the output of goods or services and their intermediate consumption. The total price for the production of goods and services within one region is the volume of products produced. The release includes goods and services already sold at market value. The average value is used for calculation. is taken into account in gross output, but only at cost. Intermediate consumption includes the value of goods and services that are fully used in production during the reporting period. Fixed capital does not play a role in calculating intermediate consumption. Expenses for the final use of GRP include expenses for households, government institutions, and collective services. By assessing the volume of gross regional product and its structure, it is possible to determine the sources of financing for final consumption.
Calculation options
In the modern economy, it is customary to use several options for calculating GRP. The production method of calculating the indicator is used at the production stage. It is, in essence, the sum of gross value added, which is generated by each resident institutional unit in the economic territory of the region. Gross regional product, the calculation of which is based on the difference between the output of goods and services and their intermediate consumption, is formed on the basis of prices for goods and services that are fully consumed in production, and is carried out at the level of industries and sectors of the regional economy. GRP can also be calculated on the basis of current market prices by comparing them.
Difference between GDP and GRP
The gross regional product, which is calculated for each region, has significant differences from GDP. The difference between the indicators is the amount of added value. This may include:
- Non-market collective services of government bodies: defense, management.
- Non-market services that are financed from the budget, but information about them is not available at the regional level.
- Services of financial institutions whose activities almost always extend beyond one region.
- Services related to foreign trade, data on which are collected at the Federal level.
Gross product: features of the indicator
The difference between GDP and GRP indicators is formed by the cost of paying taxes in connection with imports and exports. This value is very problematic to calculate due to its specificity and uneven integration between individual regions. Gross regional product by region is calculated over 28 months. The SAC technique allows you to get faster results. The government uses many mechanisms to monitor the dynamics and growth of the indicator. An interesting fact is that in total all GRP indicators do not correspond to GDP, which is determined by the specifics of the calculations and the exclusion of additional costs.
Based on what data is GRP calculated?
The multifaceted structure of the gross regional product determines the use of a large number of sources simultaneously to calculate parameter values. Thus, in the CIS countries, experts take into account enterprise registers and reports on the production and sale of goods and services, reports on production costs. Sample surveys and special reporting at the regional level are taken into account. The calculation is carried out based on employment reports and on the basis of surveys of each individual segment of the economy, based on a survey of household budgets. Significant sources of information are data from tax authorities and banking statistics, reports public organizations and execution data different types budget.
GRP in Russian practice
The gross regional product for the regions of Russia fully characterizes the level of development of the region and is compared with macro-level indicators. It plays the role of a territorial factor in the development of social and economic processes. The calculation of the value is based on the methodological principles of the SNA, the development of which was carried out within the framework of the FSGS. Publication of results after their preliminary approval is also carried out at the FSGS level.
Forecasting of gross regional product is carried out on the basis of data collected from all residents of the regional economy. These can be corporations, quasi-corporations and households whose center of economic interest is located directly in the region in question. For the first time, the calculation and analysis of the gross regional product was carried out in 1991 for 21 regions. Since 1993, all regional territorial authorities have taken part in the calculations. Since 1995, the assessment and calculation of GRP has been a mandatory condition for the implementation of the Federal Program. Only in 1997 did the assessment of the dynamics of the indicator begin. It provides grounds for the implementation of correct economic policies in the sphere of production and industry, which account for 60 to 80 percent of the total GRP in almost all regions.
Gross Domestic Product - GDP is a popular economic value. With its help, the volume of material wealth created in the country during the year is measured. There is one more parameter - GRP - gross regional product. It can be calculated for each region separately. This allows you to compare different subjects of the Federation. Today we will study it in more detail.
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GRP is calculated slowly. Data for 2017 is not yet available. Therefore, we will use figures for the year 2016. First, let’s look at which subjects of the Federation are the largest in terms of this indicator. 
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Moscow is in the lead. Its share in the structure of all-Russian GRP is 21%
. 
The number is big. It is interesting to look at it carefully under a microscope. Rosstat provides this opportunity. Here is the structure of Moscow's GRP. 
Agriculture has a negligible share, and mining has zero. By the way, the fact that many enterprises operate in the regions but are registered in Moscow does not affect the calculation of the regional product. Only goods produced or services provided are taken into account. If mining is not carried out in Moscow, then there is nothing to count. Therefore, we see a zero indicator here.
But what Moscow has great is trade and real estate. They collectively account for more than half of the GRP. It was they who gave such an impressive result. 
Moscow is of enormous commercial importance for the whole of Russia. There are a large number of wholesale warehouses and markets there. Moscow conducts active trade with all subjects of the Federation. There is a large flow of goods through it. They are sold both wholesale and retail. As for real estate, everything is clear here. Firstly, it is expensive, and secondly, it is in high demand. Therefore, the housing and office space market gave a significant increase to the overall treasury. 
Well, the Moscow manufacturing industry (plants and factories) gave the region 12%
from his GRP. Moscow is a major center of mechanical engineering, machine tool, shipbuilding, and instrument making; ferrous and non-ferrous metallurgy, chemical, light, printing industries. Here is the Khrunichev Center, which develops Proton launch vehicles and upper stages for them. 
Also, a large number of military enterprises are concentrated in Moscow. The Tyumen region is in second place in terms of GRP. In the table it is given together with the Yamalo-Nenets and Khanty-Mansi Autonomous Okrugs included in it. Such a significant gross regional product is explained by the richness of the subsoil. Oil and gas are produced in the Tyumen region. This region is an important source of hydrocarbons not only for Russia, but also for the whole world. 
In the structure of GRP, mining accounts for 54%
. Thanks to this, such a high position in this ranking was achieved. The third, fourth and fifth places are quite expected for St. Petersburg, the Moscow region and the Krasnodar Territory. Also among the regions with an impressive economic size are the Sverdlovsk region, Tatarstan and the Krasnoyarsk Territory.
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Speaking about Moscow, I said that in the structure of its GRP manufacturing industries occupy 12%
. Let's see in which regions of the Federation this area is at its maximum levels. I will name the regions where the manufacturing industry has a share of the economy above 30%. 
The Lipetsk region has a national record: 42%
. 
Refrigerators and freezers are produced here, granulated sugar and canned fruits and vegetables are produced. The Novolipetsk Iron and Steel Works plays a major role in the economy of not only the region, but also the country. 
I will briefly mention other subjects of the federation, which have a high share of the manufacturing industry in the structure of the economy. These are the Tula region, Vologda, Omsk, Kaluga, Vladimir, Chelyabinsk, Novgorod and others.
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Let us turn to the indicators of Crimea and Sevastopol. 
Our Republic ranks among other Russian regions in terms of GRP 54th place. Sevastopol on 82nd place, but he shouldn’t be embarrassed because of this, because his area and population are not large. The dynamics are noteworthy: both Crimea and Sevastopol are rapidly increasing their gross regional product. The successes of the 16th year compared to the 14th year are impressive. 
The growth is partly explained transition period. In 2014 there was a low comparison base. The economy was being rebuilt and put on new tracks. But even taking this clause into account, the GRP of Crimea is growing by leaps and bounds. Only one thing housing construction has tripled over the past year, and it is part of the regional product. Now the peninsula’s share in the country’s economy is half a percent. But it is quite clear that this is just the beginning, and this role will increase in the coming years. 
The system of indicators of the results of economic activity at the level of the country's economy as a whole should be supplemented by a system of indicators characterizing the results of economic activity at the regional level.
The logical continuation of the SNA for the regional level is the system of regional accounts (SRA), the methodological principles of which were developed Nobel laureate R. Stone in the 50s of the XX century. Currently, regional accounts are being built in many countries around the world. In Russia, only the first steps have been taken to create SDS in the constituent entities of the Federation: a production account and individual elements of a number of other accounts are being developed.
Central position in the SNA it is occupied by the indicator gross domestic product, and in the SDS its regional analogue is occupied by the gross regional product (GRP). Without them, it is impossible to construct the most important national (regional) accounts). GDP is used in all market and transition economies in macroeconomic analysis and economic policy as the main indicator. The role of GRP is not yet so authoritative, however, it is also being used more and more widely as an instrument of regional policy.
Gross regional product GRP - an indicator characterizing the results of the production of goods and services in the region in accordance with the principles of the SNA, is calculated as the difference between the output of goods and services and intermediate consumption.
GRP does not include (or partially includes) the results of activities aimed at performing national functions and not having a strict territorial reference (central administration, defense, monetary system, foreign trade, etc.). As a result, the total GRP is noticeably less than GDP: for example, for the observed years 1994-2000. its value, according to Rosstat calculations, ranged from 86 to 91%.
The problem is not only that GRP does not take into account some of the activities actually carried out in the region and therefore reflected in other regional indicators (employment, income, consumer spending, land use, etc.). The main thing is that the undistributed part of GRP fluctuates over time and is not the same in different regions of Russia. Naturally, the services and costs of central administration and international activities are carried out to a greater extent in Moscow, and the activities of the army affect the locations of military units, that is, first of all, the provinces.
Thus, gross domestic product (GDP) cannot be calculated as the sum of gross regional GRP products for all subjects of the Russian Federation.
Rosstat has been conducting official calculations of GRP in current prices since 1994 for 79 subjects of the Federation, and since 1999 - for 88 subjects. GRP is determined by production method as the sum of produced gross value added in all sectors of the national economy. GRP calculations in comparable prices have been carried out by Rosstat only since 1997.
When making interregional comparisons of GRP (as well as when making international comparisons of GDP), it is necessary to take into account regional differences in prices for goods and services.
Actual final consumption is an indicator characterizing the results of economic activity of the region at the stage of final use of GDP. This indicator is used to determine household consumption of goods and services from their own income and from transfers in kind received from government agencies and non-governmental non-profit organizations (individual health services, education, culture, etc.). Actual final consumption characterizes the level of well-being of the region's population.
1. Name the three levels of economic indicators.
2. Give characteristics of gross output.
4. What is not included in gross output?
5. How is the gross output of an economy determined?
6. Name the features of calculating the gross output of industrial enterprises.
7. What refers to industrial activities of households?
8. What is included in the gross output of agriculture?
9. What does the gross output of construction include?
10. Characterize the gross output of transport. Note the features of gross output road facilities, communications, trade and catering establishments.
11. What is the essence and composition of intermediate consumption?
12. What refers to material costs?
13. Describe intangible services.
14. What is included in material costs and intangible services in industry?
15. Characterize intermediate consumption in agriculture, construction and transport.
16. What is “gross value added”?
17. How to determine net value added?
18. What is the difference between gross and net profit enterprises?
19. What is gross domestic product?
20. Describe the gross national income indicator.
21. What is called net national income?
22. How is gross national disposable income calculated?
23. What is “gross capital formation”?
25. What are values?
26. Describe the composition of national wealth.
Lecture 4. METHODS FOR CALCULATING GROSS DOMESTIC INVESTMENT
PRODUCT
4.1.Production method
4.2. Distribution method
4.3 End use method
Gross domestic product is the main macroeconomic indicator of the performance of the economy in the statistics of most countries and international organizations (UN, OECD, IMF, IBRD). This is one of the main indicators of the system of national accounts, which characterizes the final result production activities resident economic units.
Gross domestic product is the market value of all goods and services produced by residents during a given period for final use at market prices. It includes the value of goods and services produced and does not include the value of intermediate goods and services used in production process(raw materials, materials, fuel, transport services, financial services, etc.). At the same time, like other indicators of economic performance calculated on a gross basis, GDP includes consumption of fixed capital. GDP can be calculated using 3 methods, each of which corresponds to a certain stage of the reproduction cycle:
1) production method - at the stage of production of goods and services;
2) distribution method - at the distribution stage;
3) end-use method - at the end-use stage.