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Do all countries follow the same GDP Calculation

I read somewhere that certain countries dont follow the gdp calculation that we learn in AS level eco, is this true? And if it is, which countries dont and what is the alternative method they use

9 comments

9 Comments

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shanaya oberoi

Apr 19

what are the different ways of calculating the GDP of a country?

garv bhatnagar

Apr 19

Replying to

Which of these GDP calculation methods is most commonly used by international institutions like the IMF or World Bank, and why?

Divij Jain

Apr 19

Replying to

Among the three methods, the Expenditure Method is the most commonly used by international institutions like the IMF and World Bank.

This is because it provides a comprehensive picture of economic activity by tracking the spending patterns of different sectors—households, businesses, government, and foreign trade. It’s also easier to standardize across countries compared to income or production data, which can vary significantly in quality and availability.

Additionally, many key macroeconomic indicators like consumption, investment, and trade balances are directly derived from the expenditure method, making it highly useful for global comparisons and policy analysis.

shanaya oberoi

Apr 19

Replying to

hmm alr tysm

Hyphexn .

Apr 18

Not all countries follow the exact same method for calculating GDP, but the general principles are usually pretty similar. Most countries follow guidelines from organizations like the IMF or the UN, which standardize GDP calculations (like using the expenditure, income, and output methods). That said, how data is collected, how accurate it is, or what’s included/excluded can vary a lot, especially between developed and developing countries.

Some countries might underreport or overreport certain sectors (like the informal economy), or use outdated base years, which can skew things. So yeah, the method might be “the same” in theory, but in practice, there are definitely differences.

dev khanna

Apr 18

Replying to

but which countries?

Hyphexn .

Apr 18

Replying to

Yeah, some countries do things a bit differently. For example, China’s been called out for not being super transparent with their numbers—some think local officials inflate data. India changed its method a few years ago and suddenly the economy looked way better, which got people asking questions. Nigeria had a huge GDP jump after updating their numbers for the first time in years. So yeah, even if the general method is the same, how it’s actually done can vary a lot.

Poorav Ghai

Apr 18

Replying to

Oh okay thank you so much thats so interesting