Verbull Word of the day
Finance glossary

GDP

Macro · beginner
Definition

The total value of all goods and services produced in a country in a year.

Gross Domestic Product is the broadest measure of a country economic output. It is calculated as consumption plus investment plus government spending plus net exports. Real GDP adjusts for inflation. The GDP growth rate is the primary indicator of whether an economy is expanding or contracting.

In a sentence

The country's GDP grew 3% last year, signaling a healthy, expanding economy.

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