How can I check a specific system? For this, indicators were invented. They are alone in production, others in technology, and third in economics. All are designed for a specific purpose. What macroeconomic indicators of the economy are used now? And what do 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. How do citizens, commercial structures, and the state itself live? Over time, knowledge became so much that they had to be allocated to various scientific disciplines. For example, macroeconomics studies states, their relationships, and regional economies. This is a very accurate science that provides clear, interlinked definitions. At the state level, it operates with a significant number of concepts.
About the characteristic
The use of mathematical methods for analyzing ongoing economic processes made it possible to single out a number of fundamental indicators, with the help of which it is possible to very succinctly describe the state of the state. They are used to monitor the dynamics of development, and also as a basis for making forecasts. To designate them, the concept of “macroeconomic indicators” is introduced. A clear understanding of them and how they influence them is an important basis for the development, implementation and implementation of regulatory policies. In a transition economy, they are very important, because they make it possible to judge whether the movement is going right - towards prosperity or not. To characterize the state and its economic condition, indicators are considered in aggregate form. Based on the available data, a decision is made on the current fiscal, monetary and social policies. In order not to collect them separately, complementary indicators were combined into a system of national accounts. It serves to cover all operations that take place in the economy, and takes into account the costs that the country incurs. 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 fact, gross domestic product is used to assess the market value of the total volume of final services and products that were created in the country. At the same time, ownership of the factors of production does not play a role. The size of GDP is affected by the physical volume of goods and services created, as well as their prices. In this case, quite often there are discrepancies in the final indicator. This situation 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 the second focuses on market value. It is necessary to exclude a large number of various transactions from GDP, which are carried out during the year. We can conditionally distinguish two types:
- Trade in second-hand goods.
- Purely 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 those products that were produced by factors of production owned by the citizens of this 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 incomes here include wages, taxes on production, profits, etc. At the same time, trade in used goods and purely financial transactions are not taken into account.
Foreign trade balance
Such macroeconomic indicators of income are used when using GDP and determine what the difference between imports and exports is. The balance can be either positive or negative. In the first case, there is a net export. This means that, conditionally, more goods were delivered abroad than produced. And not in quantitative terms, and 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 thousand conventional units. Other (B) is engaged in the cultivation of cereals, a centner of which costs 45 cu One computer and 10 tons of wheat were sold per year. Thus, B has a surplus of 1.5 thousand conventional units. Whereas in A it is negative for the same amount. If things continue to develop in this way, then one will have a rise in debt (which is necessary in order to buy the missing grains), 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, penalties and fines (which are paid abroad). That is, coverage is provided for all income that was received by residents of this country as part of the primary and secondary distribution of income. Gross national disposable income is summarized across all sectors of the economy. This indicator is divided into gross savings and final consumption. What are these macroeconomic indicators of the country?
Gross capital formation and final consumption
GNP covers an increase in the amount of fixed capital, a change in material assets and a net acquisition of values. These include jewelry, antiques, and the like. That is, these are contributions to the future in order to generate new income. Gross capital formation is an important element of GDP. As well as final consumption. But it includes expenses that are spent on final consumption by households, government, and non-profit organizations. Moreover, the costs of the last two coincide with the cost of their services. From this follows the concept of disposable income. In essence, this is what households get. That is, taxes, social insurance contributions, etc. are not taken into account. To calculate the value of disposable income, it is necessary to remove retained earnings, individual taxes, social insurance contributions from GNP, and add the amount of transfer payments.
A few words about the system of national accounts
It is used to combine the most important indicators of the country. Here you can find data on the release of goods and services, total income and expenses of the company. This system of macroeconomic indicators is used to collect and process information, which subsequently acts as the basis for management 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 allow us to reflect the structure of a market economy, as well as the mechanisms and institutions of functioning.
The system of national accounts can be used to characterize irreproducible material and material resources and financial assets (liabilities) associated with the movement of 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 events in households, such as cooking, cleaning the house, raising children and more. At the same time, environmental protection activities are included in the production. The system of national accounts is necessary in order to conduct effective macroeconomic policies of the state, engage in economic forecasting and ensure international comparison of national incomes.
How were macroeconomic indicators of national accounts formed?
The system arose in the 30s of the last century. A critical situation prompted its creation 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 were used that were interconnected. The first such calculations were carried out in the USA, Germany and Japan. Then the United Kingdom and France joined in. Although, if we recall the planned economy of the USSR, there is much to argue about. But the very foundation for such a 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, a modern version of this system has been in operation.
What is their role?
The system of national accounts performs important functions:
- Macroeconomic development indicators allow us to keep our finger on the country's economic pulse. At the same time, the volume of production is measured at a certain point in time, and the reasons for which such a situation exists are disclosed.
- The levels of received national income for certain time periods are compared, thanks to which you can track the time trend. The nature of the development of the country's economic sector depends on the dynamics of macroeconomic indicators: recession, stagnation, stable reproduction or growth.
- Through the information provided by the system of national accounts, the state can work more efficiently to improve the functioning of the economy.
And what about the Russian Federation?
There are macroeconomic indicators of Russia. They are publicly available, and anyone who wants to can study absolutely all the data that is of interest. The most important of these is gross domestic product. In the early 2000s and in the early years of the tenths, it actively grew and increased. But then their reduction began. Already at the end of 2013, a slowdown in the rate of development was recorded. 2014 only confirmed this dynamic. And by the end of 2015, GDP 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 expensive.
