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Gross Domestic Income (GDI) is an important concept in macroeconomics. It is a measure of the value of all the income generated in a nation's economy over a given period of time. The primary aim of GDI is to measure the total dollars entering the country from all sources, in comparison to Gross Domestic Product (GDP) which is a measurement of the value of goods and services produced in a given economy.
In economic terms, GDI is a measure of the total money received by the nation from its population as wages, profits, taxes and other forms of income. The total income for a nation's economy is equal to the expenditure by consumers, incomes to the factors of production, and the government’s deficits in relation to the exports and imports from the rest of the world. So GDI is the sum of these components; it is an estimate of the contribution made to the economy by the people inside the country.
GDI, along with GDP, are flexible measures of economic output, meaning they can be calculated by the government on a quarterly, bi-annually, or annual basis. GDI and GDP tend to be correlated in advanced economies such as the United States, and are often used to measure the performance of an economy.
McKinsey Global Institute has estimated that, as of 2020, global GDI stands at 18 trillion USD, or 20 percent higher than the figure of 15 billion USD in 2007 when the global economic crisis began. This increase may be an indicator of greater economic resilience and growing economic activity worldwide.
GDI, along with GDP, are among the main pillars of measurement for economic performance worldwide. A slight difference exists between the two, however, in that GDI counts what all participants in the economy make or “take in”, while GDP counts the value of what the economy produces. While GDI and GDP tend to be highly correlated, it is important to account for both measures of economic output in order to accurately assess a nation’s economic performance.
In economic terms, GDI is a measure of the total money received by the nation from its population as wages, profits, taxes and other forms of income. The total income for a nation's economy is equal to the expenditure by consumers, incomes to the factors of production, and the government’s deficits in relation to the exports and imports from the rest of the world. So GDI is the sum of these components; it is an estimate of the contribution made to the economy by the people inside the country.
GDI, along with GDP, are flexible measures of economic output, meaning they can be calculated by the government on a quarterly, bi-annually, or annual basis. GDI and GDP tend to be correlated in advanced economies such as the United States, and are often used to measure the performance of an economy.
McKinsey Global Institute has estimated that, as of 2020, global GDI stands at 18 trillion USD, or 20 percent higher than the figure of 15 billion USD in 2007 when the global economic crisis began. This increase may be an indicator of greater economic resilience and growing economic activity worldwide.
GDI, along with GDP, are among the main pillars of measurement for economic performance worldwide. A slight difference exists between the two, however, in that GDI counts what all participants in the economy make or “take in”, while GDP counts the value of what the economy produces. While GDI and GDP tend to be highly correlated, it is important to account for both measures of economic output in order to accurately assess a nation’s economic performance.