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The video is explaining what is economic growth and GDP (Gross Domestic Product). Secondly, it shows that there are two kinds of GDP: Nominal GDP and Real GDP. The difference between these two is that nominal GPD is influenced by price level/inflation whereas Real GDP is adjusted to inflation and so more accurate. Thirdly, the video gives formulas to convert nominal GDP to Real GDP by using the CPI (Consumer Price Index) and from there we can measure the economic growth by subtracting real GDP of this year with real GDP of last year and divide it by real GDP of last year.

I chose this video because firstly, it gives very concise and clear definition of GDP and economic growth and secondly, gives formulas how to measure them. The piece of information that I found useful and new is that there are two types of GDP: Nominal and real.

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This website page gives a definition of the GDP, the different types (Nominal GDP, Real GDP, GDP per capita, Purchasing power parity GDP), the 3 different methods of calculation (The expenditure method, The income method, The production method), where to find the data (Statistics Canada) and why the GDP fluctuation is important for entrepreneurs and businesses. the GDP indicator gives a sense of the economy’s health: growing, contracting or stagnating.

I learned from this website that measuring GDP is not only useful for governments but also for companies in helping them evaluate the potential market size and make better business decisions.

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Four different types of GDP

GDP numbers can be presented and adjusted in many ways. For this reason, it is essential to understand the different GDP types used and calculated by statistical agencies and analysts.

There are four main types of GDP you are likely to come across when reading about economic output.

1. Nominal GDP

Nominal GDP is the simplest of all four types. It is simply GDP given in current prices without adjusting for inflation.

Comparisons between years may not be meaningful, however, since one cannot know how much of the difference is attributable to a change in prices (inflation) or a change in production volume.

2. Real GDP

Real GDP is an inflation-adjusted measure of GDP.

When comparing GDP numbers between years, real GDP is the best measure. The variation observed between years will be attributable to changes in volume, not price.

There are many ways to calculate real GDP. Still, one simple method is dividing nominal GDP by a GDP deflator, an index tracking price that changes from a base year.

3. GDP per capita

Translated from Latin, per capita means "by heads" or "for each head." In a GDP context, it means "per unit of population" or "per person."

"To obtain GDP per capita, you divide GDP, whether nominal or real, by the total population," explains Charbonneau. It offers a gauge of average living standards and economic well-being.

4. Purchasing power parity GDP

GDP adjusted for purchasing power parity helps make international comparisons.

Since different economies use different currencies, comparing GDP numbers may not be immediately possible. To do this, you would need to convert the monetary values of one country's GDP into the currency of the other.

However, using market exchange rates to do this conversion can be difficult since they tend to fluctuate. For this reason, economists use the purchasing power parity index, a type of exchange rate that shows what consumers from different countries would pay for the same amount of goods and services.

How to calculate GDP

Calculating GDP is not easy since it involves accounting for everything produced in an economy.

There are three methods to calculate GDP:

1. The expenditure method

Charbonneau says the expenditure approach is perhaps the most common method to calculate GDP.

It involves adding up all the expenditures on final goods and services purchased for a given period. Through this method, GDP equals consumption plus investment, government spending and net exports.

2. The income method

The income method mirrors the expenditure approach: instead of adding up every dollar spent, it represents every dollar earned. The two methods are equivalent since, in principle, the sum of all expenditures in an economy should equal the total income generated by that economy.

More specifically, the income approach represents the total income generated by all goods and services produced.

"To get the GDP, you add up gross profits of companies and the self-employed, all employee wages and compensation, and taxes. You then subtract subsidies," explains Charbonneau.

3. The production method

The production method is conceptually more complex than the previous two. It is the total gross value of all industries.

Calculating it involves first determining the output of each industry before subtracting the goods and services used in generating that output. Statistics Canada refers to those goods and services as intermediate consumption, or simply inputs.

The gross value added is thus the difference between an industry's outputs and inputs.

Why is GDP important for entrepreneurs?

Entrepreneurs need to be aware of GDP fluctuations because they give a sense of the economy's health.

While GDP levels allow you to assess the size of a region's economy, the growth rate from one given period to another-month, quarter or year-will indicate whether the economy is growing, contracting or stagnating.

"If a business owner is planning to export, for instance, GDP numbers can be useful in helping them evaluate the potential market size," Charbonneau says. "They can also give a sense of the sector's dynamism if it's growing or not."

Although a growing economy is generally a good thing, business owners need to understand that an economy growing too fast may be overheating. In Canada, the Bank of Canada estimates that the sustainable long-term GDP growth rate is around 2%.

GDP in Canada

Where to find Canadian GDP data?

Statistics Canada produces GDP data for the whole country. You can find most of it publicly and for free, in real and nominal values by year, sector and province.

"Monthly GDP numbers are available only by the production method, while quarterly numbers are available by the expenditure and production methods," Charbonneau says. Yearly numbers are available for all three methods. However, annual GDP numbers are made available often with a delay of nearly a whole year.

Purchasing power parity GDP numbers are also publicly available. International agencies like the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD typically publish them.

Canadian GDP components

National statistical agencies typically produce highly detailed GDP data.

The GDP data in Canada is available for many industries. Statistics Canada uses the North American Industry Classification System (NAICS), which breaks down the data into very specific sub-sectors. However, confidentiality requirements mean that the data may not be publicly available at a very granular level.

Here are a few examples of NAICS categories:

Beef cattle ranching and farming, including feedlots (code 112110)

Health and personal care stores (code 4461)

Spectator sports (code 71121)

Insurance agencies and brokerages (code 52421)

Historical growth of Canadian GDP

Canadian GDP growth has varied widely through the years. The chart below gives an overview of Canadian GDP growth between 1965 and 2022.

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Understand gross domestic product, how it is calculated and what it tells about the economy.

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Video#2: Difference between Nominal and Real GDP

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Video#2: Difference between Nominal and Real GDP

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The video gives a simple case study with apples to show the difference between real and nominal GDP and how to calculate them.

I find the video very useful because the example, while it is very simplistic, helped me understand the basics. The use of graph to represent the GDP and its increase between year 1 and 2 made it very easy for me to grasp the idea.

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Real GDP and nominal GDP | GDP: Measuring national income | Macroeconomics | Khan Academy

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Hello everyone,

in my Padlet, we will explore the notions of GDP and Economic Growth and the relation between the two through websites, videos and images.

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Website#2: Gross domestic product by industry - September 2023

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Website#2: Gross domestic product by industry - September 2023

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Statistics Canada releases data and charts with great details about the Canadian economy every quarter. This page informs us about the changes in the real GDP by industry sectors every 3 months: Manufacturing, Mining, quarrying and oil and gas extraction, Construction, Agriculture, forestry, fishing and hunting contracts, Wholesale trade, Real estate, Finance and insurance, Arts, entertainment and recreation.

I found the website interesting because it gives in details which sectors have expanded and which ones have contracted and providing the rate of change.

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September 2023

0.1%

(monthly change)

Real gross domestic product (GDP) edged up 0.1% in September. Goods-producing industries (+0.3%) led the growth with a first increase in six months, while services-producing industries were essentially unchanged. Overall, 10 of 20 industrial sectors increased.

Manufacturing up after three consecutive monthly declines

The manufacturing sector increased 0.9% in September, after contracting for three months in a row, as both durable and non-durable manufacturing grew. September's increase largely stems from higher inventory formation in the month.

Non-durable manufacturing increased 0.8% in September as the majority of subsectors were up. Food manufacturing (+3.2%) led the increase as higher animal slaughtering and processing pushed up meat product manufacturing (+5.0%) to its highest level on record. Petroleum and coal product manufacturing (-1.0%) offset some of the gains as maintenance activities were performed at several refineries in September.

Durable manufacturing (+0.9%) was up for the first time in four months in September, on higher machinery manufacturing (+4.2%). The bulk of the gain in machinery manufacturing was in agriculture, construction, and mining machinery (+8.3%), coinciding with increases in the construction sector along with maintenance activities in the energy sector.

Mining, quarrying and oil and gas extraction down on broad-based contractions

The mining, quarrying and oil and gas extraction sector decreased 1.8% in September as all three subsectors contracted.

After reaching an all-time high level in August, oil and gas extraction contracted 1.9% in September. Maintenance activities at numerous facilities across the country contributed to the subsector's decline in the month. Oil and gas extraction (except oil sands) contracted 3.6% in September as maintenance work at an oil platform off Canada's Atlantic coast contributed to the decline. Oil sands extraction edged down 0.1% as lower synthetic crude production, stemming from maintenance at a number of facilities, was largely offset by higher crude bitumen extraction.

Mining and quarrying (except oil and gas) contracted 2.0% in September solely as a result of lower metal ore mining (-3.0%). Extraction of all forms of metal ores contracted in the month, with gold and silver ore mining contributing the most to the decline, coinciding with declines in exports of unwrought gold to the United Kingdom and the United States.

Support activities for mining and oil and gas contracted 1.3%, reflecting lower drilling activities in September.

Construction activity continues to grow

The construction sector built on gains seen in August (+0.2%) with a 1.0% expansion in September.

Residential building construction increased 3.8% in September, the largest monthly gain since April 2021, with activity growing across all forms of structures. Multi-unit, single family homes and home alterations and improvements all contributed to the growth.

Partially offsetting the gains in September 2023 were engineering and other construction activities (-0.9%) which posted a third consecutive decline, following the upward trend in activity that began at the end of 2020.

Agriculture, forestry, fishing and hunting contracts for the 13th consecutive month

The agriculture, forestry, fishing and hunting sector decreased 1.4% in September as the majority of subsectors contracted.

Crop production (except cannabis) was down 2.9% in September, continuing the decline that began at the end of 2022 and reflecting lower expected yields for 2023, particularly for wheat and canola, which resulted from dry conditions in the Prairies.

Wholesale trade up for third consecutive month

Wholesale trade was up 0.5% in September, as six of nine subsectors grew. Motor vehicle and parts wholesalers drove the increase in the month. Despite disruptions in the United States motor vehicle manufacturing industry, higher imports of passenger cars and light trucks from Mexico helped push motor vehicle and parts wholesaling up 2.5% in September.

Real estate down on lower home sales in September

Real estate and rental and leasing contracted for the second consecutive month, edging down 0.1% in September.

Activity at the offices of real estate agents and brokers fell 4.1% in September, down for the third consecutive month. Home reselling activity contracted for the third month in a row across the country, with Ontario, Alberta and British Columbia contributing the most to September's decline.

Finance and insurance down in September

Finance and insurance contracted for the third time in four months, down 0.3% in September. Financial investment funds, services, and other financial vehicles (-1.4%) contributed the most to the decrease in large part due to declines in equity and fixed-income mutual fund assets as investors' expectations of an additional interest rate hike in the United States in 2023 weighed on equity and fixed income bond prices.

Arts, entertainment and recreation falls for third time in four months

Arts, entertainment and recreation fell for the third time in four months, contracting 2.1% September.

Performing arts, sports, and heritage institutions contracted 3.4%, largely as a result of fewer National Hockey League (NHL) games played in the month as the pre-season began later than usual in September. The gambling industries fell 3.1%, their largest decline since January 2022, on lower expenditures at some casinos.

Advance estimate for real gross domestic product by industry for October

Advance information indicates that real GDP increased 0.2% in October. Increases in mining, quarrying, and oil and gas extraction, retail trade, and construction were partially offset by decreases in the wholesale trade sector. Owing to its preliminary nature, this estimate will be updated on December 22, 2023, with the release of the official GDP by industry data for October.

Real gross domestic product by industry edges down 0.1% in the third quarter

Services-producing industries rose 0.2% in the third quarter, up for the ninth consecutive quarter, while goods-producing industries contracted 0.9%.

The public sector rose 0.9% in the third quarter, increasing for the 13th consecutive quarter and was the largest contributor to growth, in part stemming from the rebounding of activity in federal government public administration following the effect of the strike which occurred in the previous quarter.

Mining, quarrying, and oil and gas extraction (+1.1%) was another top contributor to growth in the third quarter, driven by oil and gas extraction (+2.0%). Oil and gas extraction (excluding oil sands) rebounded from the effect of forest fires on natural gas extraction in the second quarter, while oil sands extraction continued to expand for the second consecutive quarter.

Wholesale trade (+1.0%) was among the top drivers of growth in the third quarter after being among the largest detractors to growth in the previous quarter, with several subsectors rebounding or growing at an accelerated pace. Motor vehicles and parts wholesalers and machinery, equipment and supplies wholesalers were the largest drivers of growth in the sector. Building material and supplies wholesalers posted their second gain in six quarters as residential building construction resumed growth in the third quarter following five consecutive quarterly declines.

The overall construction sector was essentially unchanged in the third quarter as increased activity in residential building construction (+3.7%) was offset by declines in engineering and other construction activities (-2.4%), repairs (-1.5%) and non-residential building construction (-0.1%). Real estate and rental and leasing (+0.3%) rose for the third consecutive quarter and was among the top contributors to growth in the third quarter. At the same time, activity at the offices of real estate agents and brokers and activities related to real estate (-2.9%) was down, as sales of homes fell from July to September, after posting a strong increase in the previous quarter.

Agriculture, forestry, fishing, and hunting (-6.9%) was the largest detractor to growth in the third quarter. The sector posted its fourth consecutive quarterly decline in large part due to weaker crop production (except cannabis) (-12.3%) resulting from drought conditions in many parts of the country. Support activities for the agriculture and forestry subsector (-3.2%) and the forestry and logging subsector (-2.7%) also contributed to the decline in the sector.

The manufacturing sector (-1.2%) also contracted in the third quarter, following two consecutive quarterly gains. Computer and electronic product manufacturing, which posted gains in the second half of 2020 and most of 2021 and 2022, has been declining since the first quarter of 2023, and was one of the largest drivers behind the sector's decline in the third quarter of 2023. Transportation equipment manufacturing tempered the decline in the sector, posting a fourth consecutive quarterly increase, mostly driven by a gain in motor vehicle manufacturing in the third quarter. Wood product manufacturing also helped temper the decline with its first increase in five quarters.

Sustainable development goals

On January 1, 2016, the world officially began implementing the 2030 Agenda for Sustainable Development -the United Nations' transformative plan of action that addresses urgent global challenges over the following 15 years. The plan is based on 17 specific sustainable development goals.

The release on gross domestic product by industry is an example of how Statistics Canada supports monitoring the progress of global sustainable development goals. This release will be used to help measure the following goal:

Products

The User Guide: Canadian System of Macroeconomic Accounts ( 13-606-G) is available.

The Methodological Guide: Canadian System of Macroeconomic Accounts ( 13-607-X) is also available.

The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, features an up-to-date portrait of national and provincial economies and their structure.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations ( statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).

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Gross domestic product by industry, September 2023

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Real gross domestic product edged up 0.1% in September on the strength of the increase in goods-producing industries.

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Image#1: Canada GDP growth rate from 2018 to 2028

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Image#1: Canada GDP growth rate from 2018 to 2028

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The image shows fluctuations of Canada GDP since 2014 and forecasts until 2028. It give overview of the GDP changes in last 10 years and prediction for the next 4 years. Predicting future GDPs is new information for me.

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Canada - Gross domestic product (GDP) growth rate 2028 | Statista

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The statistic shows the gross domestic product growth rate in Canada from 2018 to 2022, with projections up until 2028.

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Image#2: Overview of Canada's GDP changes during the last 50 years

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Image#2: Overview of Canada's GDP changes during the last 50 years

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The graph gives a overview of Canada's GDP fluctuations during the last 50 years. It is mostly positive except during 4 depression periods: the first oil crisis (1973), Early 1990s recession, the great recession (2008) and the Covid-19 recession

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Website#3: Overview of Canada GDP since 1870 and transformations

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Website#3: Overview of Canada GDP since 1870 and transformations

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The article gives an overview of the GDP and the pros and cons of this economic indicator. it shows the evolution of Canada's GDP from 1870 to 2016 and the real GDP Per Capita during this period. The graphs show also the shift of the economy in the composition of output away from goods and towards service production. It become over time much more diversified. Agriculture accounted more than 40% in 1870 is now less than 10%.

I found this website interesting because it gives historic evolution of the GDP and transformations over a long period of time

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How is GDP Measured and Constructed?

GDP is measured from the circular flow of income and expenditure between households, firms and government in an economy. National income accounting provides two basic approaches to constructing GDP, the expenditure approach and the income approach.

The expenditure approach measures the flow of total spending on final goods and services in the economy and adds up its components. These components are: consumer spending on goods and services; investment spending (spending on capital assets like machinery or housing by business and government and any changes in inventories); government spending on goods and services (excluding transfer payments such as welfare or debt service costs); and net exports (exports of goods and services minus imports from abroad; see Balance of Payments).

The income approach estimates GDP by measuring the value of all the incomes that are generated in producing goods and services. Its principal components are the wages, salaries and other compensation of employees; the gross operating surpluses of corporations; gross mixed income (remuneration for work carried out by unincorporated business owners); taxes less subsidies on production (e.g., property taxes, payroll taxes, training subsidies); and taxes less subsidies on products and imports (e.g., GST, rail passenger subsidies, payments to farmers).

The slight difference between GDP calculated by either the expenditure or the income approach is reconciled through the addition or subtraction of a statistical discrepancy, which is half the difference between the expenditure and income approaches.

GDP in 2016 via Expenditure Approach

GDP in 2016 via Income Approach

GDP as an Economic Indicator: Pros and Cons

GDP is a widely accepted international measure of economic performance as it provides a concise number that attempts to capture the market value of economic activity at a point in time. It facilitates comparisons both at a point in time and over time. It provides a readily understood and consistent tool to measure economic output - the value of goods and services produced - and to guide economic policy ( see Fiscal Policy). While boosting the growth rate of GDP is an important policy goal, using GDP as an overall measure of economic performance has a number of disadvantages.

First, it only counts activities that have a market price and as a result it omits the value of any unpaid activities such as housework, do-it-yourself or volunteer activity. It has been estimated that in Canada the value of unpaid housework alone equals an estimated 32 to 39 per cent of GDP. In addition, any illegal or black market economic activities are also not included ( see Underground Economy). As a result, GDP does not represent the total amount of economic activity in an economy.

Second, it has the perverse characteristic that if a disaster (either natural or human induced) or war occurs, the subsequent recovery or rebuilding efforts actually raise GDP even though in many respects a society is worse off. Environmental damage from economic activity is not captured by traditional GDP estimates, though efforts to clean up the environment such as after an oil spill are. Attempts have been made to include the environment in GDP estimates by estimating so-called green GDP estimates, which try to value non-market traded resources such as the pleasures of green space and environmental damages from pollution.

Third, as a measure of welfare, the increased output of goods and services does not fully measure the welfare or well-being of the members of a society ( see Standard of Living). GDP does not capture differences in the distribution of output and income between rich and poor ( see Income Distribution) and it does not capture changes in the quality over time of the goods produced.

Evolution and Composition of Canadian GDP: 1870 to 2016

Canada's total nominal GDP in 1870 has been estimated at $383 million in current dollars and has grown to reach $2.03 trillion by 2016. Nominal GDP is not adjusted for inflation and therefore increases in value may simply reflect price changes rather than quantity changes. Adjusting the value of output for inflation using the consumer price index (2002=100), real GDP in 2002 dollars grew from $7.929 billion in 1870 and reached $1.579 trillion by 2016. Figure 1 plots both nominal and real GDP from 1870 to 2016 and illustrates the expansion of the Canadian economy over time.

Figure 1

Figure 2 divides real GDP by Canada's population and presents real per capita GDP from 1870 to 2016. In 1870, real per capita GDP in 2002 dollars was $2,097 and grew over time to reach $43,526 in 2016. The average annual growth rate of real GDP from 1870 to 2016 was 2.2 per cent. Given this growth rate, the average per capita income of Canadians has doubled approximately every 33 years. As Figure 2 illustrates, there have been periods where real per capita GDP has declined. For example, the years 1929 to 1933 of the Great Depression saw real per capita GDP decline by approximately 30 per cent.

Figure 2

GDP has also been constructed so as to provide estimates of the value of output of specific sectors of the economy. Figure 3 shows that in 1870, Canada had more of an agricultural economy and that nearly 40 per cent of its GDP came from agriculture. Manufacturing was the next largest sector and accounted for 21 per cent of GDP ( see Industrialization in Canada). The productions of goods, rather than services, marked the Canadian economy at that point in history.

Figure 3

Along with rising GDP over time, Canada's economy has also seen a shift in the composition of output away from goods and towards service production. Figure 4 illustrates that by 2016, Canada's economy had become much more diversified, with services in finance, insurance and real estate, business management, professional and technical services, public administration, accommodation and food services, health care and social assistance, education, information, arts, entertainment and culture, and retail and wholesale trade accounting for some 65 per cent of GDP. Agriculture and manufacturing account for just over 10 per cent of output.

Figure 4

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Gross domestic product (GDP) refers to the value of all final goods and services produced within a country by all factors of production, regardless of their own...

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The video explains the concept of economic growth and how growth occurs. Its define more in details the economic growth using mathematics and economic models. Economic growth depends in 3 factors: capital, technology and institutions.

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Understanding economic growth | AP Macroeconomics | Khan Academy

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Video#4: Productivity and Economic Growth

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Video#4: Productivity and Economic Growth

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The videos explain why some countries are rich and others have poor. GDP per capita which is related to the output per person informing how wealthy a country. More a worker produces, more money he gets. And so economists consider that the main reason that some countries are rich is because of productivity. Factors of production that effect productivity: Land, Labor (Workers) and Capital (Financial and human capital). In conclusion, increasing in productivity has resulted in increasing in standards of living.

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Productivity and Growth: Crash Course Economics #6

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Website#4: Canadian economy and Quarter GDP Growth 

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Website#4: Canadian economy and Quarter GDP Growth 

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The website page give information on the economic growth in 2022 quarterly

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1) This topic is interesting to understand the topic of economic growth and GDP more in depth.

2) This topic help me understand how technonology

3) Wealth of a country is related to its productivity. More productive they are, more rich they are