GDP
Geography: KS3, topic 4.1.2
Gross Domestic Product (GDP)
GDP (Gross Domestic Product) is the main way to measure development economically (by looking at money and wealth).
Quality of life
- Development is defined as an improvement in people’s quality of life.
- Therefore one way to measure development is to look at the money and wealth of a country.
- If a country has more money to spend on providing services for its population, then the country is likely to be more developed.
Gross Domestic Product (GDP)
- GDP is an economic measure of development.
- The definition of GDP is the total value of goods and services produced in a country, per year.
- So, it takes into account everything made (goods) and provided (services) and adds up how much this was worth in one year.
- When measuring development using GDP, the higher the GDP, the more developed a country is.
Examples
- In 2018, the country with the highest GDP is America.
- China is the second largest economy based on its GDP.
- Japan is third.
GDP per capita
- You can also measure development by looking at GDP per capita.
- This means GDP ‘per person’.
- GDP per capita is calculated by dividing the total GDP of the country by the number of people in the population and it gives you an idea of how much wealth each person in the country has.
Test yourself on GDP
The GDP of Different Countries In 2018
What type of measurement is GDP an example of?