Regional Gross Domestic Product

What is GDP and why is it important?

Gross Domestic Product (GDP) is a measure of the total economic output of a country. Essentially, it represents the monetary value of all goods and services produced within a country’s borders over a specific period of time, usually annually or quarterly. GDP is often used as an indicator of the economic health and growth of a country. It encompasses consumption, investment, government spending, and net exports (exports minus imports).

What is “Current-dollar GDP (thousands of current dollars)”?

Current-dollar GDP (thousands of current dollars) refers to the nominal GDP expressed in thousands of current dollars. Nominal GDP is the GDP evaluated at current market prices and is not adjusted for inflation. In concept, an industry’s GDP by county and metropolitan area, referred to as its “value added”, is equivalent to its gross output (sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (consumption of goods and services purchased from other U.S. industries or imported) (U.S. Bureau of Economic Analysis).

What is “Real GDP (thousands of chained 2017 dollars)”?

Real GDP (thousands of chained 2017 dollars) refers to GDP that has been adjusted for inflation using a base year of 2017. Chained dollars are used to adjust nominal GDP for inflation. This is done by employing a chain-type index to convert the current dollar value of GDP into consistent dollars. This adjustment allows for a more accurate comparison of economic output over time, as it removes the effects of price changes.

Expressing GDP in thousands of chained 2017 dollars allows economists and policymakers to compare economic output across different time periods while accounting for changes in the price level. It provides a measure of the real, inflation-adjusted value of goods and services produced within a country’s borders, making it a useful tool for analyzing long-term economic trends and assessing changes in living standards.

What is “Per Capita Personal Income (dollars)”?

Per capita personal income (dollars) refers to the average income earned by individuals in a specific geographic area, such as a country or a region, over a certain period of time, typically a year. It is calculated by dividing the total personal income of the population by the total population.

Personal Income includes income received by individuals in exchange for their labor, land, and capital used in current production, as well as other sources of income such as personal current transfer receipts. In the state and local personal income accounts the personal income of an area represents the income received by or on behalf of the persons residing in that area. It is calculated as the sum of wages and salaries, supplements to wages and salaries, proprietors’ income with inventory valuation (IVA) and capital consumption adjustments (CCAdj), rental income of persons with capital consumption adjustment (CCAdj), personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance plus the adjustment for residence.

What is “Real Per Capita Personal Income (constant 2017) dollars”?

Real per capita personal income (constant 2017 dollars) refers to the average income earned by individuals in a specific geographic area, adjusted for inflation using 2017 as the base year. This adjustment allows for a comparison of income levels over time while accounting for changes in the purchasing power of the currency.

Calculating real per capita personal income involves adjusting the nominal per capita personal income using a price index or deflator to account for changes in the general price level between the current year and the base year (2017 in this case). This adjustment ensures that the income figures represent their equivalent purchasing power in 2017 dollars, making them comparable over time.

Read more about GDP below:

Gross Domestic Product (GDP) Regional Update 2023