Question

GDP of a nation is strongly linked to the overall usage of energy in that nation.

Answer 1

In order to understand the nature of GDP's relation with that of the energy usage, one must be able to identify the terms mentioned in the question/statement above.

GDP is the abbreviation of the term Gross Domestic Product. GDP refers to the overall output produced by a country.

In technical terms, GDP is made up of certain elements. (Consumption, investment, government spending and net exports)

So one way or another, indeed GDP is linked to the usage of energy.

See, its quite simple. GDP is related to the outcome of the country's goods and services overall.

So as much energy is introduced, the more output will be produced. Because while producing goods and or services, energy is required, whether in the form of resources or labor. Like the use of electricity and water, or man power. All require some forms of energy, literal or kinetic or it may be any sort.

Answer 2

There is a important positive relationship between growth in energy use and growth in GDP for all countries which are taken together and for all subsets of countries, although not necessarily proportional or in other cases it is not proportional but depends on the god directly or indirectly. There is some indication that growth in energy use declines with GDP per capita. There is a significantly negative relationship between the price of oil and the growth in energy use for all countries taken together and for all subsets of countries, except for planned economies and for oil exporting countries in the world.