Economic indicators include measures about an economy, its stability, and whether it is expanding or contracting.
Definition: the total value of goods produced and services provided in a country during one year.
If this number goes up, we are making and selling more stuff and the economy is growing.
GDP per capita is GDP per working-age person and is a better indicator
Compare the GDP of the US and China and you can see the problems with GDP vs GDP per capita.
| United States | China (PRC) | |
|---|---|---|
| Population | 333 million | 1.4 billion |
| 2022 GDP | $25 billion | $18 billion |
| GDP per capita | $75,180 | $12,970 |
You can see with the chart above that China’s population is doing alot of the work to increase the GDP of the country.
Definition: measures the proportion of a country's working age population that is employed
If the employment rate goes down, then less people have jobs, which means that they have less money to spend.
A sharp downturn in employment could start a deadly cycle of businesses closing and people losing jobs.
Definition: prices paid by typical consumers for retail goods and other items
High prices mean less people will buy things and the economy slows down.
Definition: the difference in value between a country's imports and exports.