GDP (Gross Domestic Product)

What is GDP

GDP stands for Gross Domestic Product, which is a measure of the economic activity of a country. It is the total value of all goods and services produced within a country's borders during a specific time period, usually one year.

GDP is used as an indicator of a country's economic health and growth. A higher GDP usually indicates a stronger economy, while a lower GDP may indicate economic weakness or contraction. However, GDP alone does not provide a complete picture of a country's economic well-being and other measures, such as income inequality, poverty levels, and environmental sustainability should also be considered.

GDP can be calculated using three different methods: the production approach, the income approach, and the expenditure approach. The production approach measures the total value of all goods and services produced by businesses and industries within a country. The income approach measures the total income earned by individuals and businesses within a country. The expenditure approach measures the total spending on goods and services by consumers, businesses, and the government within a country.