and

DEVELOPMEN
T
Hilay
Tugado
Juliano
Labtis
Cantiller

Economic Growth
- Increase in market value of the goods and
services produced by an economy over time. This
is measured by the increase in real gross domestic
product.

Gross Domestic Product

- Total value of goods produced and services

provided in a country during one year.

Economic Development
- Looks at a wider range of statistics than just GDP
per capita.

Economic Growth Economic Developmen

- Quantitative
- Measured in the
change of GDP

- Qualitative
- Looks at their
actual living
standards:
Levels of literacy
and education
standards
Levels of health
care
Housing quality
Levels of
environmental

Significance/Advantages:
1.
2.
3.
4.

Higher
Higher
Higher
Higher

Living Standards
Employment Rate
Government Finances
Profits for Sellers

Types:
Balanced Economic Growth
- All the economic sectors are growing at same
ratio or percentage

Unbalanced Economic Growth

- When some sectors of the economy are growing
faster than others, and their rate of growth is
different to each other.

Total value of products &

Services produced within the
Usage
territorial boundary of a
country.
Country with Highest Qatar ($102,943)
Per Capita (US$)
Country with Lowest Liberia ($16).
Per Capita (US$)
Country with Highest USA ($13.06 Trillion in 2006).
(Cumulative)

Total value of Goods and

Services produced by all
nationals of a country (whether
within or outside the country).
Luxembourg ($45,360).
Mozambique ($80).
USA (~ $11.5 Trillion in 2005).

* Philippines

Computing GDP Growth

Rate

2011 growth rate:

Types of GDP
Nominal economic outputs (price x
output)

Real

economic outputs in response to

Nominal GDP
Real GDP for 2009
2009
2010
inflation
for 2009
2009 $5 x 50 =
Price
5
10
2009 250
250
Outpu
50
40
2010 400
2010

$5
x
40
=
t
Difference of
200
150.
- 50 difference.

Computing for GNP:

Consumption + Government Expenditures
+Investments+ Exports + Foreign
Production by U.S. Companies Domestic
Production by Foreign Companies = Gross
National Product

Literacy Rate

(Affecting economic

development)

The NSOs 2010 Census showed that of the 71.5

million individuals who are 10 years old and above,
97.5 percent or 69.8 million were literate or could read
and write.

HDI

(Human development index)

Health
Life Expectancy
Education
Functional Literacy Rate
Enrollment Rate
Income
Real Income Per Capita

Some problems on GDP:

- Imputations
Some goods are not sold in the market; value has to
be estimated
Outputs are produced without being sold in the
market
- The black economy
Activities are hidden from the government
Participation in informal economy
- GDP increases not related to welfare economy
Goods produced and arent sold are part of GDP