What are the types of GDP

Gross domestic product (GDP)

Measure of the total economic performance in an economy in a period. Since the GDP provides information about the production of goods and services in Germany after deduction of intermediate consumption and imports, it serves as a measure of production and thus as an indicator of the economic performance of an economy (domestic concept). For derivation and presentation, a distinction is made between generation, use and distribution calculation.

I. Production calculation

Sum of the production values
- advance payments

= Gross value added

+ Taxes on goods
- subsidies on products

= gross domestic product

II. Usage calculation

Private consumer spending
+ State consumption expenditure
+ Equipment investment
+ Construction investments
+ Other systems
+ Changes in stocks and net additions to valuables
+ Exports of goods and services
- Imports of goods and services

= Gross domestic product
+ Balance of primary income with the rest of the world

= Gross national income
- Depreciation

= Net national income

III. Distribution calculation

Net national income (Primary income)
- Production and import taxes to the state
+ Subsidies from the state

= National income
- compensation of employees

= Corporate and property income

In the production calculation, the total of the gross value added of the individual economic sectors is calculated based on the respective production values ​​after deduction of the intermediate consumption. In the expenditure account, a distinction is made between consumer spending by private households, private non-profit organizations and the state, gross fixed capital formation, changes in inventories and net additions to valuables, as well as the external contribution. The distribution calculation shown in the overview is only carried out after the GDP has been determined using the production and use calculation. Gross national income (GNI) is obtained from GDP by subtracting the balance of primary income vis-à-vis other countries. The gross values ​​shown differ from the net values ​​in that depreciation is taken into account.

The GDP and the partial quantities of the production calculation can be shown at current prices of the reporting year (nominal) or for reasons of intertemporal comparability at prices of a base year (real).

For a discussion of GDP as a suitable indicator of prosperity ("Beyond GDP") see National Accounts.