Gross domestic product at market prices aims to measure the wealth created by all private and public agents in a national territory during a given period. The most key aggregate of national accounts, it represents the end result of the production activity of resident producing units.
There are three ways of measuring GDP at market prices:
- the production approach, as the sum of added values of all activities which produce goods and services, plus taxes and minus subsidies on products;
- the expenditure approach, as the sum of all final expenditures made in either consuming the final output of the economy, or in adding to wealth, plus exports and minus imports of goods and services;
- the income approach, as the sum of all incomes earned in the process of producing goods and services (payment of salaries, gross operating margin and mixed income) plus taxes on production and imports and minus subsidies.