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Gross Domestic Product (GDP)

SFBy Sitraka Forler · Lecturer, Durham Business School·Updated 13 September 2026· About this site

Total market value of goods & services produced in an economy.

The expenditure approach sums consumption, investment, government spending, and net exports. Real GDP strips out inflation so growth reflects true output. GDP growth, alongside inflation and unemployment, anchors most macro analysis.

Y = C + I + G + (X − M)
Real GDP = Nominal GDP / (Deflator / 100)

national_accounts["gdp"] = (
    national_accounts[["C", "I", "G"]].sum(axis=1)
    + national_accounts["X"] - national_accounts["M"]
)
real_gdp = nominal_gdp / (deflator / 100)

SELECT year, (consumption + investment + govt_spending
       + exports - imports) AS gdp
FROM national_accounts
ORDER BY year;