According to the Bank of Korea’s (BoK) forecast released at the end of July, North Korea’s real GDP will fall by 4.5 percent in 2020. (Figure 1). It was the steepest drop since the “Arduous March” of 1997, when North Korea was afflicted by starvation. Measures to contain COVID-19, including as blocking borders, quarantining persons […]

Simon Kuznets, the originator of GDP, was confident that his metric had nothing to do with happiness. However, we frequently mix up the two. GNP has been the go-to metric for the global elite for the past seven decades. Fast growth, as measured by GDP, has long been regarded as a measure of achievement in […]

For instance, if prices in an economy have risen by 1% since the base year, the deflated number is 1.01. If nominal GDP is $1 million, real GDP equals $1,000,000 divided by 1.01, or $990,099. How do you calculate the real GDP growth rate? The real GDP growth rate illustrates how much a country’s real […]

There are variances in how each of them defines the economy’s scope. While GDP confines its interpretation of the economy to the country’s physical borders, GNP broadens it to include the country’s nationals’ net foreign economic activities. What are GNP’s limitations? While GNP is usually used to assess productivity, it is also commonly used to […]