This document defines and provides details about key economic indicators such as GDP, GNP, and inflation rate. It explains that GDP is the total value of goods and services produced within a country's borders, while GNP includes production by citizens abroad. The document gives Pakistan's GDP growth rate of 4.14% in 2013/14 and inflation rate of 2.11% in April 2015. It also compares how production by foreign companies like Honda would be counted in GDP vs GNP.

1. ECONOMIC
INDICATOR
AN ECONOMIC INDICATOR IS A STATISTIC ABOUT ANY
ECONOMIC ACTIVITY .IT ALLOWS ANALYSIS OF
ECONOMIC PERFORMANCE AND PREDICTION OF
ECONOMIC PERFORMANCE.

2. ECONOMIC
INDICATORS
GROSS DOMESTIC PRODUCT(GDP)
GROSS NATIONAL PRODUCT(GNP)
INFLATION RATE

3. GDP:
 The total market value of all goods and services
produced within the nation’s geographic border
over a specific time period.
 GDP = Consumption + Government Expenditures
+ Investments + Exports – Imports
 e.g., if an American firm produces its product in
Pakistan then its market value will be count in our
GDP.

4. PAKISTAN GDP GROWTH RATE
 The Gross Domestic Product (GDP) in Pakistan
expanded 4.14 percent in 2013/14 fiscal year. GDP
Growth Rate in Pakistan averaged 4.92 percent
from 1952 until 2014, reaching an all time high of
10.22 percent in 1954 and a record low of -1.80
percent in 1952.

6. GNP
 A market value of what a country’s citizens produce
in given year, whether or not the production
occurred in that country.
 GNP = Consumption + Goods + Investment + net
export +Net factor payment.
 e.g., An American company produces its product in
Pakistan then it will be include in American’s GNP.

7. Current situation
 Gross National Product in Pakistan increased to
11175600 PKR Million in 2013 from 10565132 PKR
Million in 2012. Gross National Product in Pakistan
averaged 7643303.86 PKR Million from 2000 until
2013, reaching an all time high of 11175600 PKR
Million in 2013 and a record low of 3778155 PKR
Million in 2000.

9. INFLATION RATE
 Inflation can mean either an increase in the money
supply or an increase in price levels.
 The percentage rate of change of the price index
over time
 A measure of how fast a currency loses its value. The
rate at which the general level of prices for goods
and services is rising, and, subsequently, purchasing
power is falling.

10. CURRENT SITUATION
 The inflation rate in Pakistan was recorded at 2.11
percent in April of 2015. Inflation Rate in Pakistan
averaged 7.99 percent from 1957 until 2015,
reaching an all time high of 37.81 percent in
December of 1973 and a record low of -10.32
percent in February of 1959.

12. Comparison
Honda manufactures cars in the U.S., but
is incorporated in Japan. The cars it produces in the
U.S. are added to U.S. GDP, but not U.S. GNP, as these
cars use domestic factors of production (labor and
resources), but are produced by a foreign nation.
Conversely, the values are added to Japan's GNP, but
not Japan's GDP.

13. AFFECT ON EACH OTHER
 too much GDP growth is also dangerous, as it will
most likely come with an increase in inflation