GDP growth forecast: Eastern Europe, U.S., U.K. and Germany 2010-2026
Annual gross domestic product (GDP) growth rates were-3.41 percent for the United States, -9.84 percent for the United Kingdom, -4.56 percent for Germany, and -4.23 percent for Eastern Europe in 2020. This was the effect of the COVID-19 pandemic on the economy. GDP is estimated to increase in high rates in 2021 and 2022 and then gradually get back to growth rates that are comparable to before the pandemic.
What is GDP?
GDP is an important indicator to measure the economic strength of a country. It is the sum of all the consumption, investment, government expenditures, and net exports in a country. For this reason, consumer confidence can give an idea of future GDP growth. Similarly, stock exchanges such as the S&P 500 index can give an idea of the investment trends in an economy. Government spending tends to be more constant, and net exports are generally a smaller component of overall GDP. In fact, a negative trade balance can fuel an economy by boosting domestic consumption and investment.
Not included in GDP
GDP does not account for some factors. For example, existing infrastructure is not a part of the GDP calculation, though a thriving economy would be impossible without it. Nevertheless, GDP is the most widespread measure of economic performance because of its simplicity and wide scope.
What is GDP?
GDP is an important indicator to measure the economic strength of a country. It is the sum of all the consumption, investment, government expenditures, and net exports in a country. For this reason, consumer confidence can give an idea of future GDP growth. Similarly, stock exchanges such as the S&P 500 index can give an idea of the investment trends in an economy. Government spending tends to be more constant, and net exports are generally a smaller component of overall GDP. In fact, a negative trade balance can fuel an economy by boosting domestic consumption and investment.
Not included in GDP
GDP does not account for some factors. For example, existing infrastructure is not a part of the GDP calculation, though a thriving economy would be impossible without it. Nevertheless, GDP is the most widespread measure of economic performance because of its simplicity and wide scope.
