The Hill News

As most of us should know by now (but probably don't) a country's gross domestic product (its GDP) consists of its people's consumption (C), plus their investment (I), plus their collective expenditure - what their government spends (or does not spend) on their behalf (G), plus their net exports - exports less imports (NE). Expanding GDP, denoting a growing economy, is deemed to be a good thing; contracting GDP, denoting an economy in recession, a bad one. At the moment governments in the developed world are struggling to keep the GDP of their countries expanding. But if doing so is such a good thing, why is it proving such a struggle?

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