Gross Domestic Product (GDP)

GDP stands for Gross Domestic Product and is the measure of the output of a country. It is the value of all goods and services produced by a country within a given time period (usually one year).

Growth rate of GDP is one of the main indicators of economic health and future outlook, and most developed economies aim for between 1 and 10% growth rate per year (tending towards lower values).

The calculation for GDP is:

• Consumption + Investments + Government Spending + Net Exports

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Cost of Goods Manufactured (COGM)
• Marginal Cost Formula
• Nash Equilibrium