GDP means the Gross domestic product. It is the total value of all the finished goods and services produced within a country’s border in a specific time period. It is calculated on an annual basis. It includes all of the private and public consumption; government outlays, investments and exports fewer imports that occur within the domestic territory.
It is an indicator of the health of the economy. Traders, policymakers, investors etc. all have the eyes on the GDP. Different countries have different methods to calculate GDP.
The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation, is responsible for data collection and maintaining a proper record of the same.
There are 2 types of GDP:
1. GDP at factor cost: Gross national product at factor cost is defined as the value of all final goods and services at market price produced within the produced within the domestic territory of the country in an accounting year including net factor income from abroad minus net indirect taxes.
2. GDP at market price: Gross domestic product at market prices is the sum of the gross values added of all resident producers at market prices, plus taxes fewer subsidies on imports.
GDP can be calculated by the following standard equation :
Y = C + I + G + (X − M)
C= Consumption
I=Investment
G=Government spending
X=Export
M=Import
Annual GDP data is released on 31 May every year. Since the financial year is from April to May, the GDP release involves a time lag of two months.