What is GDP?

GDP or Gross Domestc Product s a measure of the overa

economc output wthn a countrys borders over a partcuar tme,
typcay a year.
GDP s cacuated by addng together the tota vaue of annua output
of a that countrys goods and servces.
GDP can aso be measured by ncome by consderng the factors
producng the output the capta and abor or by expendture by
government, ndvduas, and busness on that output.
Rea GDP s the gross domestc product ad|usted for nfaton
Nomna GDP s the gross domestc product wthout takng
nto account nfaton.
What is the GDP growth rate?
The change n GDP from one year to the next (or from quarter to
quarter) can be gven as a percentage. Ths s caed the GDP growth
rate.
The rea GDP growth rate s a much more usefu measure of economc
growth than the nomna rate.
If a countrys GDP s growng at a nomna rate of 5% but nfaton s
runnng at 4%, ony 1% of the growth s down to mproved economc
output. The rest s |ust because prces of goods and servces went up.
Why shoud we care about GDP?
The GDP shows how we a partcuar country s dong economcay.
A recesson, for nstance, s defned as two quarters of negatve GDP
growth.
One drawback of GDP however s that t can ony measure what the
government has measured. Anythng traded wthout the government
knowng wont be ncuded n the GDP, whch can be sgnfcant n
some countres.
Aso, ts worth stressng GDP s a purey economc measure. A bruta
dctatorshp mght whp a decent GDP growth rate out of ts workforce,
for nstance, but t woudnt say much about the standard of vng n
that country!
Smary, some envronmentasts have argued that our obsesson wth
growth has ed to an over-expotaton of the Earths resources.
GDP as a formua
The GDP can be represented by the foowng formua:
GDP = C + G + I + NX
Where:
C = A prvate consumpton
G = A government spendng
I = Investment by busnesses
NX = The countrys net exports (tota exports tota mports)
GNP:-
Gross national product (GNP) s a broad measure of a naton's tota
economc actvty. GNP s the vaue of a fnshed goods and servces
produced n a country n one year by ts natonas.
The formua for GNP s:
Consumption + Government !penditures + "nvestments +
!ports + #oreign Production $% &' Companies ( Domestic
Production $% #oreign Companies ) Gross National Product
Pa*istan
"ntroduction:-
The econom% o+ Pa*istan s the 43rd argest n the word n nomna
terms and 25th argest n the word n terms of purchasng power
party (PPP). Pakstan has a sem-ndustrazed economy, whch many
encompasses textes, chemcas, food processng, agrcuture and
other ndustres. Growth poes of Pakstan's economy are stuated
aong the Indus Rver; dversfed economes of Karach and Pun|ab's
urban centers coexst wth esser deveoped areas n other parts of the
country. The economy has suffered n the past from decades of
nterna potca dsputes, a fast growng popuaton, mxed eves of
foregn nvestment, and a costy, ongong confrontaton wth
neghborng Inda. However, IMF-approved government poces

bostered by foregn nvestment and renewed access to goba
markets, have generated sod macroeconomc recovery the ast
decade. Substanta macroeconomc reforms snce 2000, most notaby
at prvatzng the bankng sector have heped the economy.
GDP growth, spurred by gans n the ndustra and servce sectors,
remaned n the 68% range n 200406 due to economc reforms n
the year 2000 by the Musharraf government. In 2005, the Word Bank
named Pakstan the top reformer n ts regon and n the top 10
reformers gobay. Isamabad has steady rased deveopment
spendng n recent years, ncudng a 52% rea ncrease n the budget
aocaton for deveopment n FY07, a necessary step toward reversng
the broad underdeveopment of ts soca sector. The fsca defct the
resut of chroncay ow tax coecton and ncreased spendng,
ncudng reconstructon costs from the devastatng Kashmr
earthquake n 2005 was manageabe.
Infaton remans the bggest threat to the economy, |umpng to more
than 9% n 2005 before easng to 7.9% n 2006. In 2008, foowng the
surge n goba petro prces nfaton n Pakstan reached as hgh as
25.0%. The centra bank s pursung tghter monetary pocy whe
tryng to preserve growth. Foregn exchange reserves are bostered by
steady worker remttances, but a growng current account defct
drven by a wdenng trade gap as mport growth outstrps export
expanson coud draw down reserves and dampen GDP growth n the
medum term.
conomic comparison o+ Pa*istan ,---(.//0
1ear
Gross
Domestic
Product
&' Dollar
!change
"n+lation
"nde!
(.///),//)
Per Capita
"ncome
(as 2 o+
&'3)
1960 20,058
4.76
Pakstan
Rupees
3.37
1965 31,740
4.76
Pakstan
Rupees
3.40
1970 51,355
4.76
Pakstan
Rupees
3.26
1975 131,330
9.91
Pakstan
Rupees
2.36
1978 283,460
9.97
Pakstan
Rupees
21 2.83
1985 569,114
16.28
Pakstan
Rupees
30 2.07
1990 1,029,093
21.41
Pakstan
Rupees
41 1.92
1995 2,268,461
30.62
Pakstan
Rupees
68 2.16
2000 3,826,111
51.64
Pakstan
Rupees
100 1.54
2005 6,581,103
59.86
Pakstan
Rupees
126 1.71
"ndicator ,--- .//4 .//0 .//-
GDP $ 75 bon $ 160 bon $ 170 bon $ 185 bon
GDP Purchasng
Power Party (PPP)
$ 270 bon
$ 475.5
bon
$ 504 bon
$ 545.6
bon
GDP per Capta
Income
$ 450 $ 925 $1085 $1250
Revenue
coecton
Rs. 305
bon
Rs. 708
bon
Rs. 990
bon
Rs. 1.05
tron
Foregn reserves $ 1.96 bon$ 16.4 bon $ 8.89 bon
$ 17.21
bon
Exports $ 7.5 bon $ 18.5 bon
$ 19.22
bon
$ 18.45
bon
Texte Exports $ 5.5 bon $ 11.2 bon
KHI stock
exchange (100-
Index)
$ 5 bon at
700 ponts
$ 75 bon
at 14,000
ponts
$ 46 bon at
9,300 ponts
$ 26.5
bon at
9,000 ponts
Foregn Drect
Investment
$ 1 bon $ 8.4 bon $ 5.19 bon $ 4.6 bon
Externa Debt &
Labtes
$ 39 bon
$ 40.17
bon
$ 45.9 bon
$ 50.1
bon
Poverty eve 34% 24%
Lteracy rate 45% 53%
Deveopment
programs
Rs. 80 bon
Rs. 520
bon
Rs. 549.7
bon
Rs. 621
bon
"ndia:-
3griculture grew at 6.6% n 2010-11. Ths years monsoon s
pro|ected to be n the range of 90 to 96 per cent, based on whch
Agrcuture sector s pegged to grow at 3.0% n 2011-12!
"ndustr% grew at 7.9% n 2010-11. Pro|ected to grow at 7.1% n
2011-12
'ervices grew at 9.4% n 2009-10. Pro|ected to grow at 10.0% n
2011-12
"nvestment rate pro|ected at 36.4% n 2010-11 and 36.7% n
2011-12
Domestic savings rate as rato of GDP pro|ected at 33.8% n
2010-11 & 34.0% n 2011-12
Current 3ccount de+icit s $44.3 bon (2.6% of GDP) n 2010-
11 and pro|ected at $54.0 bon (2.7% of GDP) n 2011-12
5erchandise trade de+icit s $ 130.5 bon or 7.59% of the
GDP n 2010-11 and pro|ected at $154.0 bon or 7.7% of GDP n
2011-12
"nvisi$les trade surplus s $ 86.2 bon or 5.0% of the GDP n
2010-11 and pro|ected at $100.0 bon or 5.0% n 2011-12
Capital +lows at $61.9 bon n 2010-11 and pro|ected at $72.0
bon n 2011-12
#D" in+lows pro|ected at $35 bon n 2011/12 aganst the eve
of $23.4 bon n 2010-11
#"" in+lows pro|ected to be $14 bon whch s ess than haf
that of the ast year .e $30.3 bon
3ccretion to reserves was $15.2 bon n 2010-11. Pro|ected
at $18.0 bon n 2011-12
"n+lation rate would continue to $e at - per cent in the
month o+ 6ul%-7cto$er ./,,8 9here will $e some relie+
starting +rom Novem$er and will decline to :8;2 in 5arch
./,.8
GDP Growth ( 3ctual < Pro=ected
>angladesh
Introduction
Bangadesh emerged as an ndependent and soveregn country
n 1971 foowng a nne month war of beraton. It s one of the
argest detas of the word wth a tota area of 147,570 sq. km.
Wth a unque communa harmony, Bangadesh has a
popuaton of about 142.32 mon, makng t one of the
densey popuated countres of the word. The ma|orty (over
88%) of the peope are Musm. Over 98% of the peope speak
n Banga. Engsh, however, s wdey spoken. The country s
covered wth a network of rvers and canas formng a maze of
nterconnectng channes. Beng an actve partner, Bangadesh
pays vta roe n the nternatona and regona forum,
partcuary n the UN, Commonweath and South Asan
Assocaton of Regona Cooperaton (SAARC).
Overvew
GDP total:
$100.00 bn (at current prces
2010-11)
GDP per capita:
$664 (at current prces 2010-
11)
GDP growth rate 6.0 (at constant prces 2009-10)
(2):
9otal e!ports: $16.20 bn (2009-10)
9otal imports: $23.74 bn (2009-10)
9otal #D": $0.913 bn (2010)
#ore! reserves: $10.700 bn (Nov 2010)
Currenc%:
BDT (1 BDT=$0.01438) (avg
2009-10)
GDP at current prce
GDP data
2006-
07
2007-
08
2008-
09
2009-
10
2010-11
(p*)
GDP (bn taka)
4,724.
77
5,458.
22
6,147.
95
6,943.
20
7875.00
GNI* (bn taka)
5,077.
52
5,942.
12
6,706.
96
7,589.
28
8528.22
Per capta GDP (n
taka)
33607 38330 42628 47536 53236
Per capta GNI (n
taka)
36116 41728 46504 51959 57652
Per capta GDP (n
US$)
487 559 620 687 755
Per capta GNI (n
US$)
523 608 676 751 818
*P=provisional
GNI=Gross National Income
Md-term macroeconomc forecast 2011-2015
Rea sector
Pro|ecton
./,,-
,.
./,.-
,?
./,?-
,@
./,@-
,;
GDP at current prce (bn US$) 128.03145.35165.31187.55
GDP growth at current prce
(%)
13.2 13.5 13.7 13.5
GDP growth at constant prce
(%)
7.2 7.6 8.0 8.0
Infaton (%) 6.3 6.1 6.0 6.0
GDP defator (%) 5.6 5.5 5.3 5.0
Tota nvestment (% GDP) 28.4 30.0 31.6 32.0
% of sectorwse contrbuton to GDP durng 2009-10
Contrbuton of ndustres to GDP durng 2009-10 (m US$)
Investment statstcs durng FY 2005-2009 (m US$)
Foregn trade
Export Import trend durng the fnanca year (2005-11*)
* Import fugure up to February, 2011 & eport figure up
to !arc", 2011
Bangadesh export by ma|or products (2008-09)
Bangadesh export n ma|or countres (2008-09)
Conclusion
After anayzng the economes of Pakstan, Inda and Bangadesh
ceary shows that Inda beng the bggest market of Asa has more
GDP ncrease year to year as compared to Pakstan and Bangadesh.
Wth Pakstan havng advantage over Bangadesh n GDP and there s a
huge dfference between the two countres. In Bangadesh the servces
sector accounts for amost 50%of the GDP ndustry sector accounts for
amost 30% of GDP and agrcuture sector accounts for 20%. The
export rato has been steady over the years whe the mport rato
after ganng peak starts decnng ths s an ndcaton of favorabe
baance of payments. If we compare the export rato of Pakstan wth
that of Bangadesh t shows that Pakstan export rato has decned
after year 2008 ths coud be many duty to government change
potca nstabty.
The nfaton rate n Inda durng the year |an 09 and |an10 has been
ncreasng and reachng ts maxmum heght to amost 17 afterwards
wth some new poces by the Indan government the are abe to
contro the nfaton n country dramatcay by gvng subsdes on
basc needs. On the other hand f we compare t wth Bangadesh the
nfaton rate n Bangadesh has been on the rse contnuousy. Ths
hgh nfaton rate bady affected the economy of country. Whe f we
ook at the nfaton rate n Pakstan there s much contro and nfaton
s on the ower sde as compared to other two countres.
The unempoyment rate n Pakstan was on the hgher sde durng the
eary 2000s but wth new |ob opportuntes and Rozgar schemes from
the government ths rate s now about amost 6 whch s a sgn of
prosperng economy .now we ook at the unempoyment rate n Inda
whch s very dangerous as arge percentage of peope beng
unempoyed reason for ths coud be the ack of foregn nvestment and
so on.
So wth a these statstcs what we have concuded s as there s ow
unempoyment and nfaton rate n Pakstan as compared to two other
countres we can say that economy of Pakstan s much heathy than
the other two natons. Economy of Inda s n a better poston than
Bangadeshs economy.