Episode Synopsis "03_Epi_$...GDP(Gross Domestic Product)...$"
Hello Listeners Welcome to the 3rd episode of our podcast We will discuss GDP (Gross Domestic Product). What is GDP, Gross Domestic Product is a monetary measure of the market value of all the finished goods and services produced within a country in a specific time. For example, A Domestic producer starting from producing from raw material to finished goods and selling to the foreigners which exceed the value the more you produce and more you sell the growth rate will improve. And also GDP can represent the scorecard of the country's economic health. GDP provides an economic behavior of the country and used to estimate the size of an economy and growth rate. If you are an investor with the help of GDP growth rate numbers we can able to make better decisions related to investments. Not only for investment, if you are planning to migrate to any other country you can have quick access to GDP numbers whereas we can able to have an idea about the cost of living, employment, Health care, etc there are many sites which can provide in detail information and comparisons as well. You can refer to "The World Bank" GDP is a key tool to guide policymakers, investors, and startups. GDP is usually calculated on an annual basis and it is calculated on a quarterly basis as well. GDP can be calculated in three ways: Expenditures Production Income Based on this information it can be adjusted for inflation and population. How we can able to know rising or falling of GDP. Increasing GDP means the economy is growing. Businesses are producing and selling more products and services. Decreasing GDP means the economy is in stable positions. Businesses are producing and selling very few products and services there might several aspects linked to causing an impact on GDP might be recessions which can impact on public and private sectors, Busines profit declines and unemployment. This means the government prints more money and lowers interest rates to stimulate economic growth. In that scenario, taking out student loans, auto loans, business loans, and mortgages becomes cheaper. Credit card interest rates also dip. Well in this episode we will not go in-depth about calculations in GDP. We will discuss only GDP and Investing. It is a great tool for equity investors which provides a framework for decision making. The corporate profits and inventory data are a great resource for this kind of investor. Comparing the GDP growth rates of different countries can play a part in Asset allocation (In our coming episodes we will cover what is asset allocation ) In simple terms, Asset allocation means investing in your money into multiple buskets to earn some decent returns instead of putting all your money into one bucket. The economic slowdown in India has become the worse in the second quarter of 2019 and the GDP growth rate fell to 4.5% which lowest number for the last 26 quarters around in 2013 we are around 4.3%. This means we are back to 7 years. Now even all the countries are ongoing clean-up of the financial sectors, Private and public sectors. If you are a long term investor this is the best time to consult your financial advisor and take a call how can you invest your money. I hope you all like the content and also please share your valuable feedback in any of the podcast platforms you are listening to. Also please share our podcast with your friends we have a telegram channel if you want to join please search with our podcast name "fin buzz". Thank you Signing of your host Krishna
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