GDP is the acronym for Gross Domestic Product, and represents the sum, in monetary values, of all final goods and services produced in a given region, for a certain period.
GDP is one of the most used indicators in macroeconomics, and its main objective is to measure the economic activity of a region. In the GDP count, only final goods and services are considered, excluding all intermediate consumer goods from the account.
To analyze the behavior of a country's GDP, it is necessary to differentiate the nominal GDP of real GDP.
Nominal GDP calculates at current prices, that is, in the year the product was produced and marketed, and Real GDP is calculated at constant prices, where a base year is chosen to eliminate the effect of inflation, and O Real GDP is best suited for analysis.
GDP can be calculated from three perspectives: the expenditure perspective, the supply perspective and the income perspective.
From the perspective of expenditure, the value of GDP is calculated from the expenses made by the various economic agents in goods and services for use final, and will correspond to domestic expenditure, which includes household and government expenditure on consumer goods and business expenditure on investments.
From the perspective of supply, the value of GDP is calculated from the value generated in each of the companies operating in the economy.
From the perspective of income, the value of GDP is calculated from the income of distributed productive factors by companies, that is, the sum of the earnings of the labor factor with the earnings of other productive factors.
See also the meaning of purchasing power.
Brazil's GDP
According to PPC (Purchasing Power Parity) data, in 2014 Brazil's GDP was estimated at US$ 3.072 trillion, ranking 7th in the ranking countries with higher GDP.
That same year, the average Brazilian GDP per capita was US$ 15,153, conquering the 63rd place in the list of countries with the highest GDP per capita.
Learn more about the meaning of GDP per capita.
