What Is Global GDP?
GDP is a measure of the economic output and income of a country or region. It is a standard economic indicator, used for international comparisons of national economies and for evaluating the social and economic progress of nations and regions.
Purchasing power parity (PPP) conversion rates are commonly used to convert GDP figures from one currency to another when making cross-country comparisons, as these take into account the differing cost of living in different countries. GDP can also be calculated in terms of the market exchange rate or at a nominal or real price, the latter being adjusted for inflation.
While a high GDP may indicate a healthy economy, it is important to distinguish between quantity and quality of growth, as well as between short and long term benefits. A high GDP can, for example, be achieved by accumulating debt or by consuming natural resources, both of which will have a negative impact on the health and sustainability of an economy in the longer run.
A more accurate picture of a country’s economy can be obtained by using an economic model that takes into account structural characteristics such as the share of the economy devoted to manufacturing, services and exports. Adding these variables to our basic model shows that changes in COVID-19 deaths, the stringency of lockdown restrictions and global trade had significant impacts on quarter-on-quarter GDP growth. However, these influences were largely offset by the rebound in GDP following increased food consumption as a result of rising prices and increased supply.
