IT contribution to GDP
27 نوفمبر 2021 2021-11-25 20:40IT contribution to GDP
What is your explanation of the following statement?
“For 40 years the contribution of the information sector to GDP has remained only 4-5%. “
Over the last 40 years, the contribution of the information sector as a percentage of overall GDP has barely moved. The rationale for this is that GDP is determined by what we spend for products and services. Many internet services are free, so they are usually ignored in official economic indicators.
I think that because IT doesn’t require paying for every thing made by it but opposed to that it makes a lote of technology products for free often
As GDP only reflects what is being payed for goods and services so because information is free or even sold with a very low price compared to what it really provides so it is reflected on GDP in a neglectable amount even though it has huge importance
This means that thw GDP reflect what we pay fot all the goods nd services and on the companies
It effects on inflation
GDP at current price is the GDP unadjusted for the effects of inflation and is at current market prices. GDP at constant price is the GDP adjusted for the effects of inflation
