GDP and Americas

GDP or the Gross Domestic Product, is the amount of goods and services produced within a year in a country.  GDP is the market value of all goods that are being produced.  There are many ways of measuring the GDP of a country, and one of them is the income approach.  Income can be divided into five categories:

1.  Wages, and salaries

2. Corporate profits

3. Interest and millascenous income

4.  Farmer’s income

5. Income from non-far businesses.

Another way of measuring the GDP of a country is measuring the expenditure of money which is used to buy things.  So to clarify, the only things that are counted towards the GDP of a country are things that are sold.  If you make yourself something, or knit yourself a pair of gloves that is not counted towards the GDP because it is never sold. The formula for GDP is Y=C+I+G+(X-M) where: Y is GDP, C is consumption, I is investment, G is government spending and X is exports and M are imports of goods into a country.  Never mix GDP with GNP, because GNP is the gross national income.  Gross national income is the total value produced in a country, with income received from other countries minus the similar payments made to other countries.

Here is a list of countries with a very high GDP per capita:

North America

1. USA – $47, 400

2. Canada – $ 39,300

3. Bahamas – 30, 500

while 3 poorest countries in North America are:

1. Haiti – $ 1020

2. Nicaragua – $ 3350

3. Honduras – $ 4600

Highest GDP in South America:

1. Chile – $15,000

2. Argentina -$ 14, 600

3. Venezuela – $ 12,800

lowest GDP in South America:

1. Bolivia – $4,600

2. Paraguay – $ 4,930

3. Guyana – $ 5,500