econintersect .com

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 26 January 2018

German GDP For Students Of Economics

from Dirk Ehnts, Econoblog101

I just stumbled over a very nice figure from Destatis, Germany’s statistical office. It shows GDP and how you arrive at the correct number using the production, expenditure and income approaches. It is shown below.


Please share this article - Go to very top of page, right hand side, for social media buttons.

My favorite approach is to use the middle and right columns. In order to grow the economy, stuff has to be produced. If that is a good assumption, then we can ignore the left column for the moment. Now, the question of GDP is decided by expenditures, which create income. The second and third column are intertwined. Expenditure is to some extent financed by income, to some extent by increasing (short-term) debt. For instance, probably most of consumption is financed by income, most of capital formation by decreasing saving or increasing debt.

Put that way, it becomes clear that a rise in debt will generate more GDP if the deposits borrowed (through loans, issue of bonds, etc.) are spent on goods and services. Therefore, especially lending in the real estate sector is expansionary. This is one of the main drivers of investment, which itself is the most volatile component of GDP.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Opinion Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Opinion

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved