Economy
GDP (Gross Domestic Product)
The total monetary value of all goods and services produced within a country in a specific period.
Definition
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. It serves as a comprehensive scorecard of a country's economic health. GDP can be calculated using three approaches: expenditure (consumption + investment + government spending + net exports), income, or production. Real GDP adjusts for inflation, while nominal GDP does not. The US has the world's largest GDP at approximately $28 trillion. GDP growth rate is one of the most important economic indicators, with 2-3% annual growth considered healthy for developed economies.