Gross Domestic Product (GDP) Calculation
(courtesy of Wikipedia)
GDP was first developed by Simon Kuznets for a US Congress report in 1934. After the Bretton Woods conference in 1944, GDP became the main tool for measuring a country’s economic performance and has become a number much loved by governments and the media to summarise ‘how we are doing’.
The generally favoured formula in investment and economic media is
GDP = C + I + G + (X – M)
But does it tell us anything meaningful about the well-being of a country’s economy?Read More»