Main macroeconomic indicators - list and dynamics

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

How can I test a certain system? To do this, indicators were invented. In production they are one, in technology they are different, and in the economy they are third. All of them are designed with a specific purpose in mind. What macroeconomic indicators of the economy are currently used? And what do they let you know?

General information

The development of the human community throughout history has been characterized by certain types of economic relationships. Over time, when economic science appeared, it was necessary to know more and more. How citizens live, commercial structures, and the state itself. Over time, knowledge became so much that they had to be separated into various scientific disciplines. For example, macroeconomics studies states, their relationships, and the economies of regions. It is a very exact science, which ensures that there are clear, interrelated definitions. At the state level, it operates with a significant number of concepts.

About the characteristic

UseMathematical methods for analyzing ongoing economic processes have made it possible to identify a number of fundamental indicators that can be used to describe the state of the state in a very concise manner. They are used to monitor the dynamics of development, and also as a basis for making forecasts. For their designation, the concept of "macroeconomic indicators" was introduced. Understanding them clearly and what impact they have is an important basis for designing, implementing and implementing regulatory policies. In a transitional economy, they are very important, because they allow you to judge whether the movement is right - in the direction of prosperity or not. To characterize the state and its economic condition, the indicators are considered in aggregate form. Based on the available data, a decision is made on the ongoing fiscal, monetary and social policy. In order not to collect them separately, complementary indicators were combined into the system of national accounts. It serves the purpose of covering all the transactions that take place in the economy, and takes into account the costs incurred by the country. Based on the system data, economic forecasts and models are developed.

About gross domestic product

The macroeconomic indicator of GDP is central to the system of national accounts. In essence, the gross domestic product is used to estimate the market value of the entire volume of final services and products that have been created in the country. In this case, the ownership of the factors of production does not play a role. The size of the GDP is affectedthe physical volume of goods and services created, as well as their prices. At the same time, discrepancies in the final indicator are quite often observed. This state of affairs is due to the choice of method to be used. What does this mean in practice? There are methods of production and end use. And when calculating the gross domestic product, they give different results. Why is that? The fact is that in the first case, the price of factors of production is taken into account. Whereas in the second attention is paid to the market value. From GDP it is necessary to exclude a large number of different transactions that are carried out during the year. Conventionally, two types can be distinguished:

1. Used goods trading.
2. Pure financial transactions.

Gross National Product

This is the second most important indicator. It, like GDP, is used to measure the market value of final goods and services that are produced in the economy over a period of time (usually a year). But it has a significant difference! The gross national product takes into account only the output that was produced by the factors of production owned by the citizens of that country. In this case, even data on those who reside and conduct activities abroad are taken into account. The calculation of macroeconomic indicators of this type in practice is somewhat problematic, because you need to know not only the results of activities, but also who owns what. Primary income here includes wages, taxes on production, profits, and so on. It also excludes trade in used goods and purelyfinancial transactions.

Foreign trade balance

These macroeconomic measures of income are used when using GDP and determine what is the difference between imports and exports. The balance can be both positive and negative. In the first case, there is a net export. This means that, conditionally, more goods were delivered abroad than were produced. And not in terms of quantity, but in terms of cost. That is, in practice it may be that there are not many goods, but they are very expensive. Consider an example: there are two states. One (A) makes computers for 3,000 conventional units. Another (B) is engaged in the cultivation of cereals, a centner of which costs 45 USD. One computer and 10 tons of wheat were sold during the year. Thus, B has a positive balance of 1.5 thousand conventional units. Whereas for A it is negative by the same amount. If things continue to develop like this, one will have a growing debt (which is needed to buy the missing grain), and the second will have stocks.

Gross National Disposable Income

It differs from GNP by the size of the balance of current redistributive payments that are transferred or received from abroad. They may include humanitarian aid, gifts to relatives, interest and fines (which are paid abroad). That is, coverage is provided for all income that was received by residents of this country in the framework of the primary and secondary distribution of income. Gross national disposable income is summed upacross all sectors of the economy. This indicator is divided into gross saving and final consumption. What are these macroeconomic indicators of the country?

Gross capital formation and final consumption

GNP covers the increase in the amount of fixed capital, the change in inventories and the net acquisition of valuables. These include jewelry, antiques, and the like. That is, these are investments in the future in order to generate new income. Gross capital formation is an important element of GDP. Just like final consumption. But it includes expenditures that go to the final consumption of households, government and non-profit organizations. At the same time, the costs of the latter two coincide with the cost of their services. This is where the concept of disposable income comes in. Essentially, this is what households get. That is, taxes, social security contributions, etc. are not taken into account. To calculate the value of disposable income, it is necessary to remove retained earnings, individual taxes, social security contributions, and add the amount of transfer payments from GNP.

A few words about the system of national accounts

It is used to link together the most important indicators of a country. Here you can find data on the output of goods and services, the total income and expenditure of society. This system of macroeconomic indicators is used to collect and process information, which subsequently acts as the basis formanagement decisions. Thanks to it, it is possible to visualize the dynamics of GDP or GNP at all stages, that is, in production, distribution and consumption. Its indicators make it possible to reflect the structure of the market economy, as well as the mechanisms and institutions of functioning.

The system of national accounts can be used to characterize non-reproducible tangible resources and financial assets (liabilities) associated with the movement of ongoing financial flows. During its development, the boundaries of economic production were determined. They covered almost all goods and services, with the exception of a number of activities in households, such as cooking, cleaning the home, raising children, and others. At the same time, activities to ensure environmental protection are included in production. The system of national accounts is necessary in order to conduct an effective macroeconomic policy of the state, engage in economic forecasting and provide international comparison of national incomes.

How did the national accounts macroeconomic indicators develop?

The system originated in the 30s of the last century. Its creation was prompted by a critical situation in connection with the economic crisis that began in 1929. In order to adequately assess the development of the economy and take effective political and economic measures, it was necessary to assess the current situation. For this, synthetic indicators interconnected with each other were used. The first such calculations were carried out in the USA, Germany and Japan. Then Britain and France joined in. Although, if we recall the planned economy of the USSR, there is much to argue about. But the very basis for such development was created much earlier. The theoretical basis was formulated by theorists and practitioners of economic sciences for two centuries. Now special attention is paid to international organizations, among which the most important is the UN. It has been using the system of national accounts since 1953. In 1968 it was reformed. And since 1993, the modern version of this system has been operating.

What is their role?

The System of National Accounts performs important functions:

1. Macroeconomic development indicators allow you to keep abreast of the country's economic pulse. This measures the volume of production at a certain point in time, and reveals the reasons why this situation exists.
2. The levels of national income received over certain time periods are compared, thanks to which a time trend can be tracked. The nature of the development of the economic sector of the country depends on the dynamics of macroeconomic indicators: recession, stagnation, stable reproduction or growth.
3. Through the information provided by the system of national accounts, the government can work more effectively to improve the functioning of the economy.

And what about Russia?

There are also macroeconomic indicatorsRussia. They are in the public domain, and everyone, if they want, can study absolutely all the data that is only of interest. The most important of these is the gross domestic product. At the beginning of the 2000s and in the first years of the 1910s, it actively grew and increased. But then they began to decrease. Already at the end of 2013, a slowdown in the rate of development was recorded. 2014 only confirmed this trend. And at the end of 2015, GDP generally fell by 3.7%. Now the situation has been more or less stabilized, but so far there is no need to talk about growth. In addition, keeping GDP under control was not cheap.

Conclusion

Macroeconomic indicators are useful and necessary tools. But to use them effectively, you need to have the knowledge and understanding of how to turn them to your advantage. This becomes a task for the government, the ministry of finance, the tax service, the state treasury and all the people who deal with these nuances. After all, the main pursued goal of compiling indicators is to provide absolutely all the conditions in which the well-being of the people, the standard of living of specific people and the whole country as a whole will grow. Alas, the system of macroeconomic indicators itself cannot tell what needs to be done. It only provides a basis for making the right decisions.