GDP

Gross National product is a measure of national income and output, and is used to estimate the welfare of an economy by totaling the value of goods and services produced in an economy. GNP, along with GDP are the primary measures of national income and output. The key difference between the two is that GDP is the total output of a region, eg. America, and GNP is the total output of all nationals of a region, eg. Americans.

The Reserve Bank of India (RBI) today hiked the Credit Reserve Ratio (CRR) by 25 basis points to 8.25 per cent with effect from May 24 and left key interest rates unchanged in its annual the monetary and credit policy for the year 2008-09.

The hike in the CRR, the mandatory amount that banks have to keep with the RBI, followed a two-stage rise earlier in April to 8.0 percent and the second hike has yet to take effect on May 10.The RBI left its key lending rate unchanged at 7.75 percent and left the reverse repo rate, unchanged at 6.0 percent. The bank rate, which is used to price medium-term and long-term loans, remained at 6.0 percent.

GDP or Gross Domestic Product of a country is considered to be one of the most important measure of economic activity in that country. The percapita gross domestic product is the GDP (total income) of a country, divided by its population. It provides a good measure of the economic activity and well-being of the country for international comparative purposes.