It would be earnest endeavor to define each of the economic terms used in the previous post. Trust the definition bring in much needed clarity to all those who are new to Economics.
Gross Domestic Product (GDP) : It is aggregate monetary value of final goods and services produced in a country during a period say a quarter or year. These goods and services are bought by ultimate user. In order to have parity across the globe, GDP figures are always quoted net of inflation prevalent in the country.
Consumer Price Index (CPI) : It is a measure that determines the weighted average prices of the predetermined basket of consumer/retail goods and services, such as health care, food and transportation. CPI is generally used statistics to determine inflation or deflation level in an economy during a certain period.
Wholesale Price Index (WPI) : It is a measure that determines the price of the representative basket of the wholesale goods. WPI focuses on the goods traded between Business-to-Business segment. It's purpose is to monitor price movements that reflects demand and supply in the B2B segment of the economy.
Index of Industrial Production (IIP) : This index measures the growth of various production activities in an economy such as electricity, mineral mining and manufacturing. IIP is a composite indicator that monitors volume of production of the basket of Industrial Products in a given period with respect to base period.
Foreign Exchange Reserves (FCA) : Foreign Currency Assets are the holdings in the form of Cash, Bank Deposits, Bonds and other financial instruments denominated in currencies other than domestic currency. These reserves generally reflect economy's position to meet import and foreign currency loan obligations.
Interesting updates would continue. Keep watching this space!
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