The most important component of spending in GDP is consumer spending which typically accounts for around 70% of GDP in most developed economies.
Consumer spending represents the largest component of GDP, making it a major driver of economic growth. Consumer spending directly affects businesses and industries that cater to individual needs and wants. High consumer spending indicates a strong economy and healthy demand for goods and services.
Consumer spending also indirectly impacts other components of GDP, such as investment and government spending. When consumers have more money to spend, businesses are more likely to invest and hire more workers, which leads to increased government revenue and spending.