Gross domestic product

In economics, the term "gross domestic product" refers to the monetary value placed on the market by all of the final products and services produced in a certain period of time. GDP (nominal) per capita, on the other hand, does not take into account differences in the cost of living and inflation rates between countries; as a result, comparing living standards between countries on the basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between countries, whereas comparing national economies on the international market may be more useful when comparing nominal GDP. The total gross domestic product (GDP) may also be broken down into the contributions made by each sector or industry of the economy. The per capita GDP of an area is calculated as the ratio of GDP to the entire population of the region, and the same is referred to as the Mean Standard of Living.

A number of national and international economic bodies are responsible for the maintenance of GDP definitions. Oxford English dictionary defines GDP as "an aggregate measure of production equal to the total of the gross values contributed by all resident and institutional units engaged in production and services (plus any taxes, but minus any subsidies, on goods that are not included in the value of their outputs)". According to an International Monetary Fund article, "GDP represents the monetary value of final products and services—that are purchased by the end user—produced in a country in a particular period of time (for example, a quarterly and a year)"

The Gross Domestic Product (GDP) is often used as a statistic for international comparisons as well as a general indicator of economic development. It is often referred to as the "most potent statistical measure of country growth and advancement in the world." But those who are critical of the growth imperative often claim that GDP measurements were never meant to be used to assess development and that they fail to take into account important externalities such as resource exploitation, environmental damage, and unpaid domestic labour. When it comes to assessing the impact of the economy on human development and well-being, critics frequently point to alternative economic models such as doughnut economics that employ alternative measures of success or alternative indicators such as the OECD's Better Life Index as more effective approaches than traditional economic models.