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Economy > Economic growth > Inflation > GDP deflator: Countries Compared

DEFINITION: The GDP deflator is an implicit, not an explicit deflator. It is derived by dividing an index of GDP measured in current prices by a chain volume index of GDP (see Evolution of GDP), both, typically. derived using the expenditure approach (see Size of GDP). It is therefore a weighted average of the price indices of:

goods and services consumed by households;

expenditure by government on goods, services and salaries;

fixed capital assets;

changes in inventories;

exports of goods and services;

imports of goods and services (minus).

While the CPI measures the price changes of goods and services consumed by households, the GDP deflator measures the price changes of goods and services produced by a country, including exports, and also includes a component to reflect price changes in imports. Hence, the treatment of exports and imports merits special attention. The GDP deflator will go up, indicating more inflation, if the prices of exports rise but although higher inflation is usually thought of as a bad thing, it may actually be beneficial to a country if the prices of its exports rise, since it is non-residents who pay the higher prices; although this may be coupled with a fall in the value of the country’s currency. Conversely, price rises in imports will reduce the GDP deflator, although, following the same reasoning this may not necessarily be a good thing for residents.

CONTENTS

# COUNTRY AMOUNT DATE GRAPH
1 Turkey 8.11% 2009
2 Hungary 5.73% 2009
3 Iceland 5.51% 2009
4 Mexico 4.73% 2009
5 Australia 4.43% 2009
6 New Zealand 4.26% 2009
7 Czech Republic 3.62% 2009
8 Poland 3.3% 2009
9 Spain 3.17% 2009
10 Canada 3.07% 2009
11 Portugal 2.95% 2009
12 Finland 2.95% 2009
13 Sweden 2.92% 2009
14 United Kingdom 2.88% 2009
15 Greece 2.87% 2009
16 United States 2.69% 2009
High income OECD countries average (profile) 2.52% 2009
17 France 2.46% 2009
18 Belgium 2.42% 2009
19 Italy 2.26% 2009
20 Norway 2.24% 2009
21 Austria 2.13% 2009
Group of 7 countries (G7) average (profile) 2.08% 2009
22 Denmark 1.96% 2009
23 Germany 1.86% 2009
24 Switzerland 1.77% 2009
25 Luxembourg 1.66% 2009
26 Netherlands 1.51% 2009
27 Ireland 1.4% 2009
28 South Korea 1.23% 2009
29 Slovakia 1.11% 2009
30 Japan -0.657% 2009

Citation

"Countries Compared by Economy > Economic growth > Inflation > GDP deflator. International Statistics at NationMaster.com", OECD Country statistical profiles 2009. Aggregates compiled by NationMaster. Retrieved from http://www.nationmaster.com/country-info/stats/Economy/Economic-growth/Inflation/GDP-deflator

Economy > Economic growth > Inflation > GDP deflator: Countries Compared Map

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