MODELING AND FORECASTING GROSS DOMESTIC PRODUCT (GDP) USING LINEAR REGRESSION

Gross Domestic Product (GDP) is mostly known as the main measure of economic performance. It is an economic survey of market values of all merchandise and services produced over a period of time, usually annually or quarterly. GDP is Nominal when calculated for current prices. When calculated for constant prices, it is Real GDP. The increase in real GDP indicates increase in the national output GDP per capita.GDP per capita at purchasing power parity (PPP) is possibly more useful while comparing the living standards between nations. This paper highlights the major components involved in GDP calculation. This paper reviews various indicators used for measurement of GDP and how they affect GDP. This paper used linear regression for GDP prediction.