Quick answer: With consumption 2,000, investment 800, government spending 900, exports 1,500 and imports 1,200, GDP = 2,000 + 800 + 900 + (1,500 − 1,200) = 4,000.
How it's calculated
The expenditure approach measures GDP as final spending on goods and services produced in the country: GDP = C + I + G + (X − M). C is household consumption, I is gross investment (including changes in inventories), G is government consumption and X − M is exports minus imports.
Imports are subtracted because they are already counted inside C, I and G but were produced abroad. A country with large exports, such as an oil exporter, has a positive X − M that adds to GDP.
Use figures in the same currency and period. Current national accounts are published by GASTAT in Saudi Arabia, the Federal Competitiveness and Statistics Centre in the UAE, and the other Gulf statistics offices.
Worked examples
- C 2,000, I 800, G 900, X 1,500, M 1,200: GDP = 3,700 + 300 = 4,000
- C 500, I 150, G 200, X 100, M 180: GDP = 850 − 80 = 770
Frequently asked questions
Why are imports subtracted?
Spending on imported goods is included in consumption, investment and government spending, but it is not domestic production, so it is taken out once through M.
Can investment be negative?
Gross investment includes the change in inventories, which can be negative, but total investment is almost always positive.
Is this nominal or real GDP?
Whatever you enter. Figures at current prices give nominal GDP; figures at constant prices give real GDP.
What is GDP per capita?
GDP divided by the number of people. It gives you average output per person, but tells you nothing about how evenly that income is shared.
What's the difference between GDP and GNI?
GDP counts what's produced inside the country. GNI adds what residents earn from abroad, like returns on foreign investments, and takes off what's paid out to non-residents. Countries with big sovereign wealth funds can end up with GNI well above GDP.
What does a positive X − M mean?
A trade surplus: the country sells more to the world than it buys. Oil exporters tend to run big ones when oil prices are high.