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Develops an estimate for the UK and discusses recent trends in what could be a relevant statisticGross domestic product (GDP) measuresthe volume of goods and servicesproduced by a nation. By adjusting thismeasure to reflect movements in theterms of trade, command GDP describesthe purchasing power of a nation’soutput. For an open economy such as theUK, and given recent developments in theglobal economy such as the introductionof low-cost emerging market producers,large increases in commodity prices andexchange rate volatility, it could be arelevant statistic. This article develops anestimate of command GDP for the UK anddiscusses recent trends. Economic & Labour Market Review (2008) 2, 26–29; doi:10.1057/elmr.2008.136

Command GDP: the purchasing power of UK output