Can someone please explain what factors affect a country GDP? Also, if Thailand has a GDP of 4.5% and Australia has a GDP of 2.8%, please explain which country has a better economy.

Thanks for your help

Those are not GDP's (Gross Domestic Products), they are GDP growth rates. A higher growth rate is better in the long run, but different short term factors may be at play. The overall level of the GDP, per capita, is a better measure of economic health.

China has had the largest GDP growth rate in the world for over a decade but may not be able to sustain it. Thailand and Australia both have good economies, but Australia's has been historically more stable.

As for your first question, I suggest you review the meaning of GDP. It is the sum of the value of all goods and services produced by the country.

Usually, GDP is measured by the expenditure method:

GDP = consumption + investment + (government spending) + (exports − imports)

Many factors affect each of these. If government spends too much, then taxes go up and people have less to spend. If people buy imports more than other countries' people buy ours, then we owe more than we get. If there is a bad weather year, all of these factors may have difficulties. War is a big factor.

Certainly! The factors that affect a country's GDP (Gross Domestic Product) can be grouped into four main categories: consumption, investment, government spending, and net exports.

1. Consumption: The total spending by households on goods and services within a country. Factors such as income levels, population size, consumer confidence, and cultural behaviors can impact consumption.

2. Investment: The total spending on capital goods, such as machinery, equipment, and infrastructure. Investment is influenced by factors like interest rates, business confidence, technological advancements, and government policies that encourage or discourage investments.

3. Government Spending: Total expenditure by the government on public goods and services, including infrastructure, defense, education, and healthcare. Government spending policies and economic priorities can significantly impact GDP.

4. Net Exports: The difference between a country's exports (the value of goods and services sold abroad) and imports (the value of goods and services bought from abroad). Factors such as exchange rates, competitiveness of domestic industries, and global demand for products/services influence net exports.

Now, let's address the second part of your question regarding Thailand and Australia's GDP growth rates. In this case, it's important to note that GDP growth rates are different from the overall size of the economy.

A GDP growth rate is the percentage change in GDP from one period to another, typically calculated annually. In your example, Thailand has a GDP growth rate of 4.5%, while Australia has a GDP growth rate of 2.8%.

A higher GDP growth rate suggests that the economy is expanding at a faster pace. However, it does not necessarily imply that a country has a better overall economy. To compare the overall strength of two economies, other factors need to be considered, such as the size of the economy, income levels, productivity, standard of living, and social indicators.

To determine which country has a better economy between Thailand and Australia, you would need to consider a broader range of economic indicators and factors beyond just the GDP growth rate. GDP growth rate is just one piece of the puzzle when evaluating the economic performance and quality of life in a country.