Economic activity within a nation is reflected in the vast array of goods and services produced. Economic indicators are used to assess these goods and services, both quantitatively and qualitatively.
An economic indicator numerically expresses the quantitative aspects of economic phenomena and processes under specific conditions. It allows us to understand these processes quantitatively, structurally, and qualitatively, and to observe relationships within the national economy.
Indicators are categorized as microeconomic or macroeconomic based on the scope of calculation. Microeconomic indicators reflect the performance of individual economic entities, while macroeconomic indicators measure the performance of the national economy as a whole. Macroeconomic indicators are derived from microeconomic data. Key macroeconomic indicators include aggregate product, gross domestic product (GDP), gross national product (GNP), national income, and personal income.
Gross National Product (GNP) represents the market value of all final goods and services produced by a country’s economic agents within a specific period, typically one year, regardless of whether they are located within the country’s borders or abroad.