Field: European and global development context

Subfield: Macroeconomic stability and trade

Details:

Annual percentage growth rate of GDP is calculated at market prices based on constant local currency. GDP is calculated here as the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies. This value is calculated without making any deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. The percentage growth rate of GDP in a country can reflect both expansion and contraction of economy, as well as contextual events that can impact a state’s economy. The indicator allows a comparison of the effect of the financial crisis on various economies, as well as the effects of conflicts or of various trade or investment integration treaties. Economic growth also reflects the internal drivers of development, especially by reference to production capacities and goods and services added value. That is the reason why the calculation formula used by the World Bank (based on production) is especially relevant for the State of the Nation aggregator and the analysis of the dynamics of international economic development.