The British-financed docks and railway system created a dynamic agro-export sector that remains as an economic pillar.
S GDP computed on the income basis Within each country GDP is normally measured by a national government statistical agency, as private sector organizations normally do not have access to the information required especially information on expenditure and production by governments.
When one compares GDP figures from one year to another, it is desirable to compensate for changes in the value of money — i. To make it more meaningful for year-to-year comparisons, it may be multiplied by the ratio between the value of money in the year the GDP was measured and the value of money in a base year.
Suppose also that inflation had halved the value of its currency over that period. Unlike consumer price indexwhich measures inflation or deflation in the price of household consumer goods, the GDP deflator measures changes in the prices of all domestically produced goods and services in an economy including investment goods and government services, as well as household consumption goods.
Per-capita GDP is a measure to account for population growth. Cross-border comparison and purchasing power parity[ edit ] The level of GDP in countries may be compared by converting their value in national currency according to either the current currency exchange rate, or the purchasing power parity exchange rate.
Current currency exchange rate is the exchange rate in the international foreign exchange market. Purchasing power parity exchange rate is the exchange rate based on the purchasing power parity PPP of a currency relative to a selected standard usually the United States dollar.
The ranking of countries may differ significantly based on which method is used.
The current exchange rate method converts the value of goods and services using global currency exchange rates. There is a clear pattern of the purchasing power parity method decreasing the disparity in GDP between high and low income GDP countries, as compared to the current exchange rate method.
This finding is called the Penn effect. Standard of living and GDP: Wealth distribution and externalities[ edit ] GDP per capita is often used as an indicator of living standards.
It is measured frequently in that most countries provide information on GDP on a quarterly basis, allowing trends to be seen quickly. It is measured widely in that some measure of GDP is available for almost every country in the world, allowing inter-country comparisons.
It is measured consistently in that the technical definition of GDP is relatively consistent among countries. GDP does not include several factors that influence the standard of living. In particular, it fails to account for: Externalities — Economic growth may entail an increase in negative externalities that are not directly measured in GDP.
Non-monetary economy— GDP omits economies where no money comes into play at all, resulting in inaccurate or abnormally low GDP figures. For example, in countries with major business transactions occurring informally, portions of local economy are not easily registered.
Bartering may be more prominent than the use of money, even extending to services. For instance, although computers today are less expensive and more powerful than computers from the past, GDP treats them as the same products by only accounting for the monetary value.
The introduction of new products is also difficult to measure accurately and is not reflected in GDP despite the fact that it may increase the standard of living.
For example, even the richest person in could not purchase standard products, such as antibiotics and cell phones, that an average consumer can buy today, since such modern conveniences did not exist then. Sustainability of growth— GDP is a measurement of economic historic activity and is not necessarily a projection.Joseph Stiglitz: ‘GDP per capita in the UK is lower than it was before the crisis.
That is not a success’ The gap between rich and poor is . Here you have the comparison between Ireland vs United Kingdom. GDP per capita (Dollars) GDP per capita (Dollars) Country comparison Ireland vs United Kingdom. Subscribe to our free email alert service Gender Gap Ranking [+].
Analysis; Galleries; France sees jump in gap between rich and poor In most of the 34 countries in the Organisation for Economic Cooperation and Development the income gap is at its highest.
The Government of The Gambia has established a National Poverty Line YEAR AND REFERENCE. using the upper poverty line, based on per capita consumption, the head count index (i.e. the percentage of poor people) is calculated at percent.
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Gross domestic product (GDP) per capita of the United Kingdom (UK) in current prices from to (in U.S. dollars) The statistic shows GDP per capita in the United Kingdom from to