What is 'GDP'?

Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Gross Domestic Product—GDP Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country's economic health. Though GDP is typically calculated on an annual basis, it is sometimes calculated on a quarterly basis as well. In the U.S., for example, the government releases an annualized GDP estimate for each fiscal quarter and also for the calendar year. The individual data sets included in this report are given in real terms, so the data is adjusted for price changes and is, therefore, net of inflation. In the U.S., the Bureau of Economic Analysis (BEA) calculates the GDP using data ascertained through surveys of retailers, manufacturers, and builders, and by looking at trade flows. Read More » Related to "Gross Domestic Product—GDP" The Importance of the GDP GDP is an accurate indication of an economy's size. The GDP growth rate is probably the single best indicator of economic growth. However, GDP per capita has a close correlation with the trend in living standards over time. Read More » Top 20 Economies in the World Learn which countries rank as being one of the top 20 economies in the world. The United States has been the global leader since 1871, but China may soon position it as the world leader with its amazing growth. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » GDP vs. GNP: What's the Difference? Gross domestic product is the value of a nation's finished domestic goods and services during a specific time period. Gross national product is the value of all finished goods and services owned by a country's residents over a period of time. Read More » Sign Up for 'The Express' Want more Investopedia market news? Get market insights and financial headlines before the opening bell. Make your mornings more enjoyable, for free. Check it Out » Related Definitions Annualize Annualizing a number means converting a short-term calculation or rate into an annual rate. Read More » Balance of Trade The balance of trade is the difference between a country's import and export payments and is the largest component of a country's balance of payments. Read More » Export The definition of export is goods produced in one country and shipped to another country for future sale or trade, adding to the producing nation's gross output. Read More » Import An import is a good or service brought into one country from another and, along with exports, are components of international trade. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy