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references :: Definitions and Notes
G
  • GDP (official exchange rate)
    This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at official exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-à-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artificially fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home-currency-denominated GDP changed.
  • GDP (purchasing power parity)
    This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States in the year noted. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The differences between the OER- and PPP-denominated GDP values for most of the wealthy industrialized countries are generally much smaller.
  • GDP - composition, by end use
    This entry shows who does the spending in an economy: consumers, businesses, government, and foreigners. The distribution gives the percentage contribution to total GDP of household consumption, government consumption, investment in fixed capital, investment in inventories, exports of goods and services, and imports of goods and services, and will total 100 percent of GDP if the data are complete.
    household consumption consists of expenditures by resident households, and by nonprofit institutions that serve households, on goods and services that are consumed by individuals. This includes consumption of both domestically produced and foreign goods and services.
    government consumption consists of government expenditures on goods and services. These figures exclude government transfer payments, such as interest on debt, unemployment, and social security, since such payments are not made in exchange for goods and services supplied.
    investment in fixed capital consists of total business spending on fixed assets, such as factories, machinery, equipment, dwellings, and inventories of raw materials, which provide the basis for future production. It is measured gross of the depreciation of the assets, i.e., it includes investment that merely replaces worn-out or scrapped capital. Earlier editions of The World Factbook referred to this concept as Investment (gross fixed) and that data now have been moved to this new field.
    investment in inventories consists of net changes to the stock of outputs that are still held by the units that produce them, awaiting further sale to an end user, such as automobiles sitting on a dealer’s lot or groceries on the store shelves. This figure may be positive or negative. If the stock of unsold output increases during the relevant time period, investment in inventories is positive, but, if the stock of unsold goods declines, it will be negative. Investment in inventories normally is an early indicator of the state of the economy. If the stock of unsold items increases unexpectedly – because people stop buying - the economy may be entering a recession; but if the stock of unsold items falls - and goods "go flying off the shelves" - businesses normally try to replace those stocks, and the economy is likely to accelerate.
    exports of goods and services consist of sales, barter, gifts, or grants of goods and services from residents to nonresidents.
    imports of goods and services consist of purchases, barter, or receipts of gifts, or grants of goods and services by residents from nonresidents. Exports are treated as a positive item, while imports are treated as a negative item. In a purely accounting sense, imports have no direct impact on GDP, which only measures output of the domestic economy. Imports are entered as a negative item to offset the fact that the expenditure figures for consumption, investment, government, and exports also include expenditures on imports. These imports contribute directly to foreign GDP but only indirectly to domestic GDP. Because of this negative offset for imports of goods and services, the sum of the other five items, excluding imports, will always total more than 100 percent of GDP. A surplus of exports of goods and services over imports indicates an economy is investing abroad, while a deficit indicates an economy is borrowing from abroad.
  • GDP - composition, by sector of origin
    This entry shows where production takes place in an economy. The distribution gives the percentage contribution of agriculture, industry, and services to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP - per capita (PPP)
    This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP - real growth rate
    This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent. The growth rates are year-over-year, and not compounded.
  • GDP methodology
    In the Economy category, GDP dollar estimates for countries are reported both on an official exchange rate (OER) and a purchasing power parity (PPP) basis. Both measures contain information that is useful to the reader. The PPP method involves the use of standardized international dollar price weights, which are applied to the quantities of final goods and services produced in a given economy. The data derived from the PPP method probably provide the best available starting point for comparisons of economic strength and well-being between countries. In contrast, the currency exchange rate method involves a variety of international and domestic financial forces that may not capture the value of domestic output. Whereas PPP estimates for OECD countries are quite reliable, PPP estimates for developing countries are often rough approximations. In developing countries with weak currencies, the exchange rate estimate of GDP in dollars is typically one-fourth to one-half the PPP estimate. Most of the GDP estimates for developing countries are based on extrapolation of PPP numbers published by the UN International Comparison Program (UNICP) and by Professors Robert Summers and Alan Heston of the University of Pennsylvania and their colleagues. GDP derived using the OER method should be used for the purpose of calculating the share of items such as exports, imports, military expenditures, external debt, or the current account balance, because the dollar values presented in the Factbook for these items have been converted at official exchange rates, not at PPP. One should use the OER GDP figure to calculate the proportion of, say, Chinese defense expenditures in GDP, because that share will be the same as one calculated in local currency units. Comparison of OER GDP with PPP GDP may also indicate whether a currency is over- or under-valued. If OER GDP is smaller than PPP GDP, the official exchange rate may be undervalued, and vice versa. However, there is no strong historical evidence that market exchange rates move in the direction implied by the PPP rate, at least not in the short- or medium-term. Note: the numbers for GDP and other economic data should not be chained together from successive volumes of the Factbook because of changes in the US dollar measuring rod, revisions of data by statistical agencies, use of new or different sources of information, and changes in national statistical methods and practices.
  • Geographic coordinates
    This entry includes rounded latitude and longitude figures for the centroid or center point of a country expressed in degrees and minutes; it is based on the locations provided in the Geographic Names Server (GNS), maintained by the National Geospatial-Intelligence Agency on behalf of the US Board on Geographic Names.
  • Geographic names
    This information is presented in Appendix F: Cross Reference List of Geographic Names. It includes a listing of various alternate names, former names, local names, and regional names referenced to one or more related Factbook entries. Spellings are normally, but not always, those approved by the US Board on Geographic Names (BGN). Alternate names and additional information are included in parentheses.
  • Geography
    This category includes the entries dealing with the natural environment and the effects of human activity.
  • Geography - note
    This entry includes miscellaneous geographic information of significance not included elsewhere.
  • Gini index
    See entry for Distribution of family income - Gini index
  • GNP
    Gross national product (GNP) is the value of all final goods and services produced within a nation in a given year, plus income earned by its citizens abroad, minus income earned by foreigners from domestic production. The Factbook, following current practice, uses GDP rather than GNP to measure national production. However, the user must realize that in certain countries net remittances from citizens working abroad may be important to national well-being.
  • Government
    This category includes the entries dealing with the system for the adoption and administration of public policy.
  • Government - note
    This entry includes miscellaneous government information of significance not included elsewhere.
  • Government type
    This entry gives the basic form of government. Definitions of the major governmental terms are as follows. (Note that for some countries more than one definition applies.):
    Absolute monarchy - a form of government where the monarch rules unhindered, i.e., without any laws, constitution, or legally organized opposition.
    Anarchy - a condition of lawlessness or political disorder brought about by the absence of governmental authority.
    Authoritarian - a form of government in which state authority is imposed onto many aspects of citizens' lives.
    Commonwealth - a nation, state, or other political entity founded on law and united by a compact of the people for the common good.
    Communist - a system of government in which the state plans and controls the economy and a single - often authoritarian - party holds power; state controls are imposed with the elimination of private ownership of property or capital while claiming to make progress toward a higher social order in which all goods are equally shared by the people (i.e., a classless society).
    Confederacy (Confederation) - a union by compact or treaty between states, provinces, or territories, that creates a central government with limited powers; the constituent entities retain supreme authority over all matters except those delegated to the central government.
    Constitutional - a government by or operating under an authoritative document (constitution) that sets forth the system of fundamental laws and principles that determines the nature, functions, and limits of that government.
    Constitutional democracy - a form of government in which the sovereign power of the people is spelled out in a governing constitution.
    Constitutional monarchy - a system of government in which a monarch is guided by a constitution whereby his/her rights, duties, and responsibilities are spelled out in written law or by custom.
    Democracy - a form of government in which the supreme power is retained by the people, but which is usually exercised indirectly through a system of representation and delegated authority periodically renewed.
    Democratic republic - a state in which the supreme power rests in the body of citizens entitled to vote for officers and representatives responsible to them.
    Dictatorship - a form of government in which a ruler or small clique wield absolute power (not restricted by a constitution or laws).
    Ecclesiastical - a government administrated by a church.
    Emirate - similar to a monarchy or sultanate, but a government in which the supreme power is in the hands of an emir (the ruler of a Muslim state); the emir may be an absolute overlord or a sovereign with constitutionally limited authority.
    Federal (Federation) - a form of government in which sovereign power is formally divided - usually by means of a constitution - between a central authority and a number of constituent regions (states, colonies, or provinces) so that each region retains some management of its internal affairs; differs from a confederacy in that the central government exerts influence directly upon both individuals as well as upon the regional units.
    Federal republic - a state in which the powers of the central government are restricted and in which the component parts (states, colonies, or provinces) retain a degree of self-government; ultimate sovereign power rests with the voters who chose their governmental representatives.
    Islamic republic - a particular form of government adopted by some Muslim states; although such a state is, in theory, a theocracy, it remains a republic, but its laws are required to be compatible with the laws of Islam.
    Maoism - the theory and practice of Marxism-Leninism developed in China by Mao Zedong (Mao Tse-tung), which states that a continuous revolution is necessary if the leaders of a communist state are to keep in touch with the people.
    Marxism - the political, economic, and social principles espoused by 19th century economist Karl Marx; he viewed the struggle of workers as a progression of historical forces that would proceed from a class struggle of the proletariat (workers) exploited by capitalists (business owners), to a socialist "dictatorship of the proletariat," to, finally, a classless society - Communism.
    Marxism-Leninism - an expanded form of communism developed by Lenin from doctrines of Karl Marx; Lenin saw imperialism as the final stage of capitalism and shifted the focus of workers' struggle from developed to underdeveloped countries.
    Monarchy - a government in which the supreme power is lodged in the hands of a monarch who reigns over a state or territory, usually for life and by hereditary right; the monarch may be either a sole absolute ruler or a sovereign - such as a king, queen, or prince - with constitutionally limited authority.
    Oligarchy - a government in which control is exercised by a small group of individuals whose authority generally is based on wealth or power.
    Parliamentary democracy - a political system in which the legislature (parliament) selects the government - a prime minister, premier, or chancellor along with the cabinet ministers - according to party strength as expressed in elections; by this system, the government acquires a dual responsibility: to the people as well as to the parliament.
    Parliamentary government (Cabinet-Parliamentary government) - a government in which members of an executive branch (the cabinet and its leader - a prime minister, premier, or chancellor) are nominated to their positions by a legislature or parliament, and are directly responsible to it; this type of government can be dissolved at will by the parliament (legislature) by means of a no confidence vote or the leader of the cabinet may dissolve the parliament if it can no longer function.
    Parliamentary monarchy - a state headed by a monarch who is not actively involved in policy formation or implementation (i.e., the exercise of sovereign powers by a monarch in a ceremonial capacity); true governmental leadership is carried out by a cabinet and its head - a prime minister, premier, or chancellor - who are drawn from a legislature (parliament).
    Presidential - a system of government where the executive branch exists separately from a legislature (to which it is generally not accountable).
    Republic - a representative democracy in which the people's elected deputies (representatives), not the people themselves, vote on legislation.
    Socialism - a government in which the means of planning, producing, and distributing goods is controlled by a central government that theoretically seeks a more just and equitable distribution of property and labor; in actuality, most socialist governments have ended up being no more than dictatorships over workers by a ruling elite.
    Sultanate - similar to a monarchy, but a government in which the supreme power is in the hands of a sultan (the head of a Muslim state); the sultan may be an absolute ruler or a sovereign with constitutionally limited authority.
    Theocracy - a form of government in which a Deity is recognized as the supreme civil ruler, but the Deity's laws are interpreted by ecclesiastical authorities (bishops, mullahs, etc.); a government subject to religious authority.
    Totalitarian - a government that seeks to subordinate the individual to the state by controlling not only all political and economic matters, but also the attitudes, values, and beliefs of its population.
  • Greenwich Mean Time (GMT)
    The mean solar time at the Greenwich Meridian, Greenwich, England, with the hours and days, since 1925, reckoned from midnight. GMT is now a historical term having been replaced by UTC on 1 January 1972. See Coordinated Universal Time.
  • Gross domestic product
    See GDP
  • Gross national product
    See GNP
  • Gross national saving
    Gross national saving is derived by deducting final consumption expenditure (household plus government) from Gross national disposable income, and consists of personal saving, plus business saving (the sum of the capital consumption allowance and retained business profits), plus government saving (the excess of tax revenues over expenditures), but excludes foreign saving (the excess of imports of goods and services over exports). The figures are presented as a percent of GDP. A negative number indicates that the economy as a whole is spending more income than it produces, thus drawing down national wealth (dissaving).
  • Gross world product
    See GWP
  • GWP
    This entry gives the gross world product (GWP) or aggregate value of all final goods and services produced worldwide in a given year.
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Note: Information for the US and US dependencies was compiled from material in the public domain and does not represent Intelligence Community estimates.
 
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