What is ‘Gross Domestic Product – GDP’
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well. GDP includes all private and public consumption, government outlays, investments and exports minus imports that occur within a defined territory. Put simply, GDP is a broad measurement of a nation’s overall economic activity.
Consumption : Expenditures of the household sector to buy domestically produced goods & services & taxs( ERP , COE , levy & CPF ) and etc..Largely dependent on the size of population. Even daily necessity or makan at coffee shop / hawker center .
Note: In Singapore every consumption are inclusive of the 7% GST . For public utility bill of introducing the 30% raise of water conservation tax plus carbon tax. In order to maintain the GDP during the slow growth period.
Investment: Investment is the creation of capital goods, which are used to produce goods. (buying stocks is NOT investment here.) Or foreign company setting up business unit on their product and services and real estates.
Government spending: government yearly budget or purchases of goods and services such as improving infrastructure , Spending on public housing , public education , medical & social com care .
Net Exports: Export (including cargo embargo ) – import( inclusive of all product & services & consumption goods)