GDP growth slows to an 11-year low of 4.2%

GDP growth slows to an 11-year low of 4.2%

Part of: GS-Prelims and GS-III – Economy

In News:

• According to data released by the National Statistical Office, economic growth slowed to an 11-year low of 4.2% in 2019-20.
• In the final quarter of the year (January-March, 2020) the growth rate of Gross Domestic Product (GDP) fell to 3.1%.

Image source: The Hindu 

Important value additions 

Gross Domestic Product (GDP)

• It is a measure of economic activity in a country. 
• It is the total value of a country’s annual output of goods and services. 
• GDP = Private consumption + Gross investment + Government investment + Government spending + (exports-imports)

Nominal GDP

• It is GDP evaluated at current market prices taking into account current inflation or deflation. 

Real GDP 

• It is calculated in a way such that goods and services are evaluated at some constant set of prices.

The National Statistical Office (NSO) 

• It is the central statistical agency of the Government mandated under the Statistical Services Act, 1980. 
• It comes under the Ministry of Statistics and Programme Implementation.
• It provides statistical information services so that the Government can formulate better policies. 
• The services include collecting, compiling and disseminating official statistical information.