ABSTRACT
The Gross Domestic Product (GDP) was developed by Simon Kuznets, an economist at the National Bureau of Economic Research (US), in the 1930s, as an indicator of national economic output. The creation of the GDP was prompted by the need for a standard measure that would be able to quantify the extent of the economic collapse under way, and could be used to devise policies to improve the economy. Following the establishment of international financial institutions, such as the World Bank and the International Monetary Fund at the Bretton Woods Conference in 1944, the GDP was adopted globally as the standard tool to measure the size of a country’s economy.
