Calculate the gross domestic product of your country. Enter the consumption, investment, government purchase, exports, and imports to determine the GDP of your country.
The following formula is used to calculate the GDP of a country.
GDP = NE + I + GP + C
- Where GDP is the gross domestic product
- NE is the net exports
- I is the total investments
- GP is the government purchases
- C is the total consumption
GDP is a measure of the aggregate domestic output of a country. It’s often used as a economical indicator to determine the overall strength of an economy in a given year. It’s a measure of the value of all of the final goods and services produced in that time frame. It also takes into account total expenditures on goods purchases from other counties.
How to Calculate GDP
The following components are summed together to calculate the GPD of a country.
- Net exports
- This is equal to the total exports – the total imports
- The total amount of money spent on investments
- Government Purchases
- Total amount spent on goods by the government
- The total spent on goods and services everywhere else
The calculator above sums all of these values to produce the total gross domestic output of a country.
Real GDP vs Nominal GDP
The calculator above determines the nominal GDP of a country, but typically the real GDP is considered more important. The real GDP is a measure of gross domestic product that has been adjusted for inflation. The importance of this is that the GDP of a country can skyrocket under heavy inflation, but that does not mean that the economy is doing well. As a result, many economists prefer real GPD to nominal.