Income and Output
The subjects on this page are various measures of output and income. We explain each of the most commonly-used concepts, provide data on them for the UK and for some other countries, and provide commentaries on each topic.
Real and Nominal GDP
Gross Domestic Product (GDP) is a measure of a nation’s production of goods and services over a given period of time, and it is often used as an indicator of economic performance and an economy’s standard of living. This page explains the difference between nominal and real GDP. It also explains why GDP per capita is the preferred measure for standard of living comparisons.
A more obvious way to monitor a nation’s standard of living is by measuring the disposable incomes of households. This page explains real household disposable income and median household income. The latter is a particularly important measure of the ‘typical’ household’s standard of living.
GDP Across Countries
Different countries produce different goods and services; and the prices of these goods and services are often in different currencies. This makes comparisons of GDPs across countries difficult. On this page we show how such comparisons can be made and make such comparisons for the UK and certain other countries.