Stock market total value traded to GDP (%)

This indicator assesses the liquidity and vibrancy of a nation's stock market by measuring the total value of traded shares as a percentage of the country's Gross Domestic Product (GDP). It utilizes a deflation method to account for inflationary effects, formulated as {(0.5)*[Ft/P_et + Ft-1/P_et-1]}/[GDPt/P_at], where F represents stock market capitalization, P_e denotes the end-of-period Consumer Price Index (CPI), and P_a signifies the average annual CPI. By incorporating both current and historical CPI data (IFS series 64M..ZF or 64Q..ZF), this indicator provides a nuanced view of market activity relative to economic output, potentially serving as a barometer for investment climate and economic health, revealing trends that could influence investor confidence and policy-making. Source: