National income is the total value a country’s final output of all new goods and services produced in one year. Calculating national income:
Any transaction which adds value involves three elements – expenditure by purchasers, income received by sellers, and the value of the goods traded. For example, if a student purchases a textbook for Rs 30, spending = Rs 30, income to the bookseller = Rs 30, and the value of the book = Rs 30. All of the transactions in an economy can be looked at in this way, giving us three ways to measure national income. There are three methods of calculating national income:
1. The income method, which adds up all incomes received by the factors of production generated in the economy during a year. This includes wages from employment and self-employment, profits to firms, interest to lenders of capital and rents to owners of land. 2. The output method, which is the combined value of the new and final output produced in all sectors of the economy, including manufacturing, financial services, transport, leisure and agriculture. 3. The expenditure method, which adds up all spending in the economy by households and firms on new and final goods and services by households and firms.
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI). All are specially concerned with counting the total amount of goods and services produced within some "boundary". The boundary is usually defined by geography or citizenship, and may also restrict the goods and services that are counted.
Gross Domestic Product (GDP):
GDP measures total income of a nation. It is the market value of all final goods and services produced within a country in a given period of time. COMPONENTS OF GDP :
GDP(denoted by Y) is divided into four components namely:
1. Consumption (C)
2. Investment (I)
3. Government Purchases (G)
4. Net exports (NX)
Y= C + I +G + NX
GDP of Bangladesh:
The Gross Domestic Product (GDP) in Bangladesh was worth 110.61 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of Bangladesh is roughly equivalent to 0.18 percent of the world economy. Historically, from 1960 until 2011, Bangladesh GDP averaged 30.3 USD Billion reaching an all time high of 110.6 USD Billion in December of 2011 and a record low of 4.3 USD Billion in December of 1960. The gross domestic product (GDP) measures of national income and output for a given country's economy.
BANGLADESH GDP GROWTH RATE
The Gross Domestic Product (GDP) in Bangladesh expanded 6.30 percent in the second quarter of 2012 over the previous quarter. GDP Growth Rate in Bangladesh is reported by the Bangladesh Bank. Historically, from 1994 until 2012, Bangladesh GDP Growth Rate averaged 5.6 Percent reaching an all time high of 6.7 Percent in June of 2011 and a record low of 4.1 Percent in June of 1994. Bangladesh is considered as a developing economy. Yet, almost one-third of Bangladesh’s 150m people live in extreme poverty. In the last decade, the country has recorded GDP growth rates above 5 percent due to development of microcredit and garment industry. Although three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from producing ready-made garments. The biggest obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms.
There are various indicators that measure GDP:
1. Consumption: Consumption is spending by households on goods and services, with the exception of purchases of new housing. Goods include automobiles, appliances, food, clothing and also...