Gross Domestic Product (GDP)

Last updated on
February 17, 2022

Gross domestic product (GDP) is a standard measure of the value-added created by a country's production of goods and services over a given time period. As a result, it also measures the income generated by that production or the total amount spent on finished goods and services. While GDP is the most important indicator for capturing economic activity, it is inaccurate as a means of providing a suitable measure of people's material wellbeing, for which other indicators may prove to be appropriate.

It must be noted that not all productive activities are included in the measurement of GDP, for example, alternative economies like the black markets are hard to measure. GDP is traditionally calculated on an annual basis, but it is also calculated on a quarterly basis on occasion.

Despite its shortcomings, GDP is an important tool for policymakers, investors, and businesses to use when making strategic decisions.

Nigerian Context

According to World Bank data, Nigeria's Gross Domestic Product (GDP) was 432.30 billion US dollars in 2020. Nigeria's GDP value represents 0.38 percent of the global economy. Nigeria's National Bureau of Statistics (NBS) publishes Real GDP in local currency at basic 2010 prices. In addition, Nigeria's nominal GDP reached 114.8 USD billion in December 2020.

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