Finance
What is GDP?
GDP (Gross Domestic Product) is the total value of all goods and services a country produces in a period. It's the most common measure of the size and health of an economy.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains gdp.
Key things to understand
- 1It sums everything a nation produces — consumption, investment, government spending, and net exports.
- 2Rising GDP usually signals a growing economy; falling GDP can signal recession.
- 3'GDP per capita' divides it by population to compare living standards.
- 4It measures output, not wellbeing, inequality, or sustainability.
Frequently asked questions
- What does GDP measure?
- The total market value of all final goods and services produced within a country in a given period.
- What is a recession?
- Commonly defined as two consecutive quarters of falling GDP, signaling a broad economic contraction.
- What are GDP's limitations?
- It ignores inequality, unpaid work, environmental costs, and overall wellbeing.