Gross Domestic Product

Gross Domestic Product

Measuring the development of prosperity in society can be achieved through the assessment of economic activity. The most widely used indicator for evaluating the strength and performance of an economy is Gross Domestic Product (GDP). GDP reflects the total value of all goods and services produced within a country, minus the value of the inputs required for their production.

GDP per capita serves as a critical indicator of economic performance and a valuable metric for comparing average living standards and overall economic well-being. It is calculated as the ratio of Gross Domestic Product (GDP) to the total population of the country, providing insights into the economic output attributable to each individual.

GDP and Economic Growth

Numerous economic and social entities within both the public and private sectors require a robust set of comparable and reliable statistics on the economy to formulate evidence-based policies. Temporal variations in GDP serve as critical indicators of economic growth and development.

Household Consumption impact on GDP

As labor participation and income levels rise, the demand for goods and services from households escalates. This increased demand prompts companies to expand their production capacities, leading to a rise in household consumption, which in turn contributes to GDP growth. Conversely, during periods of economic downturn, when individuals experience reduced earnings, consumption patterns shift downward, resulting in diminished demand for goods and services. In response, companies must adjust their production levels downward, leading to a deceleration or contraction in GDP growth.

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Press Releases

https://www.instat.gov.al/en/themes/economy-and-finance/national-accounts-gdp/

Tables and Graphs

https://www.instat.gov.al/en/themes/economy-and-finance/national-accounts-gdp/

Methodology

https://www.instat.gov.al/en/themes/economy-and-finance/national-accounts-gdp/

Articles/Books

Regional Statistical Yearbook 2023 | Instat;

Albania in Figures, 2022 | Instat.

Statistical Indicator Glossary

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