GDP growth slows to an 11-year low of 4.2%
Part of: GS-Prelims and GS-III – Economy
- 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)
- It is GDP evaluated at current market prices taking into account current inflation or deflation.
- 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.