1. Gross Domestic Product
IB Global Politics
UWC Costa Rica

2. The definition
the monetary value of all the finished goods and services produced within a country's borders in a specific time period

3. So, the larger the GDP figure, the more developed a country is, right?
Comparing GDP
The USA has GDP of $17,968,200 million
So, the larger the GDP figure, the more developed a country is, right?
The Gambia has GDP of $824 million
Figures taken from IMF 2014

4. GDP is more useful when expressed in terms of population
The USA has GDP of $17,968,200 million
But when we divide GDP by population we get a figure of GDP per capita (PPP) of $54,370
The Gambia has GDP of $824 million
When we divide GDP by population we get a figure of GDP per capita (PPP) of $1,605
Figures taken from IMF 2014

5. How might this affect rankings?
GDP
GDP per capita
United States
China
Japan
Germany UK
France
Intaly
India
Brazil
Canada
Qatar
Luxembourg
Singapore
Brunei
Kuwait
Norway
UAE
San Marino
Switzerland
USA

6. Limitations of GDP as a measure of development
GDP does measure
GDP does not measure
Income
Growth
Equality
Destruction
Social cohesion
Environment