Gross Domestic Product

Gross Domestic Product (GDP) is the gross market value of the total goods and services produced within the domestic boundaries of a country during a given period of time. It is also known as National Income (Y). Total imports and total exports are essential components for the estimation of a country’s GDP. They are taken into account as “Net Exports”.

GDP = C + I + G + X – M

Where:

• C = Consumer expenditure
• I = Investment expenditure
• G = Government expenditure
• X = Total exports
• M = Total imports