Gross domestic product is the best way to measure a
country’s economy. GDP is the total market value of all final goods and
services produced by factors of production in a country over a given period of
Fomula how to calculate Gross domestic product (GDP)
C + I + G + (X-M).
C= (personal consumption) which is includes the purchase
of goods and services produced by firms, individuals or households. For example
compact disks,personal computer, paying insurance and obtaining legal services
I = (investment) refer to the purchase of capital goods
by firms for use in production and also changes in the firms inventories.
G= (government spending) expenditures made by federal,
state and local governments for final goods and services.
(X – M) = (Net exports) difference between the value of
exports and the value of imports
GDP = wages + salaries + rent + profit + interest +
Our group had been choose japan as key macroeconomic
indicators for japan of Asian country. Japan is a very impressive country in
the world in terms of the economy. Japan is the second largest world’s economy after USA as of 2009 data. They
also have the second highest GNP after USA. (Economy, 2009 ). Although it was
defectively hit by the recent global
economic failure it has started to show some positive signs of improving after introducing a stimulus package by the
Japanese government (Japan’s Economy Leaves Recession, 2009).
Next we move to Japan’s gross domestic product currently
they are only behind the USA and according to 2009 evolution which was based on official exchange rate
Japan have recorded 5.108 Trillion USD
in 2010 and raise into 5.96 trillion USD in 2012. Their GDP growth rate has downward to -5.3% per annum during 2009 (Japan, 2010)
due to the property of global economic crisis. Prior to the economic failure
they sustain an average of GDP growth rate around 2%. In japan, government
consumption is 20.5% followed by private consumption accounts for 60.9% of
its GDP and private non- residential investment 13.4%.Imports and
exports account for 14.7% and 16.6%