Know the content (added knowledge of the gathering edition)

GRDP is one of the concepts in the measurement of national income that measures the added value of goods and services produced by all economic activities in a particular region for a particular year. GRDP can be calculated using three approaches, namely the production approach, the income approach, and the expenditure approach. GRDP has benefits as a guideline for the government in making economic policies.

GRDP is an abbreviation of gross regional domestic product, namely the amount of gross added value arising from all economic sectors in the area. GRDP describes the performance of the regional economy and can be calculated by three approaches, namely production, expenditure, and income. GRDP can also be divided into GRDP on the basis of applicable prices and GRDP on the basis of constant prices, each of which has its own use and meaning. GRDP is one important indicator to find out the economic conditions, growth, and distribution of income in an area.

  GRDP is the amount of added value of goods and services produced from all economic activities in all regions. There are three approaches that are usually used to calculate GRDP:

1. Production Approach: This method pays attention to the amount of production from various sectors. The formula is as follows:

2. Revenue Approach: Calculation of GRDP with an income approach is carried out by calculating all the services obtained by each of the factors of production, namely in the form of wages, salaries, business surplus and coupled with depreciation and indirect taxes and net taxes

3. Expenditure Approach: This approach calculates GRDP by containing various kinds of expenses made by economic actors.

Keep in mind that in calculating the GRDP, the products produced by foreign companies carrying out production activities in the area are included in the calculation

Gross Regional Domestic Product (GRDP) has several important uses for the people of Sumedang Regency:

1. Economic Indicators: GRDP becomes an important indicator to find out the economic conditions in an area in a period. By knowing the GRDP, the community can understand the economic conditions of their region.

2. Policy making: GRDP is very important, especially in policy making. Accurate data can help the government formulate strategies to increase GRDP. This has an impact on improving the welfare of the community.

3. Regional Development: GRDP can be used as an input to the Ministry/LPND to provide further coaching in the context of improving regional performance through regional capacity building.

4. Identification of regional potential: GRDP can help identify the potential economic sectors in Sumedang Regency. For example, natural resources, population, science and technology area, history, Jatigede tourism, and geographical location.

Thus, GRDP has an important role in economic development and improving the welfare of the community in Sumedang Regency.