What is GDP & why is it important?

What is GDP? Gross domestic product or GDP is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at a different point in time.

What does GDP mean in economics?

When GDP goes up, the economy is growing – people are spending more and businesses may be expanding. For this reason, GDP growth – also called economic growth or simply “growth” – is a key measure of the overall strength of the economy. What’s not captured in GDP statistics?

What is the difference between GDP and gross national product?

While GDP measures the economic activity within the physical borders of a country (whether the producers are native to that country or foreign-owned entities), gross national product (GNP) is a measurement of the overall production of people or corporations native to a country, including those based abroad.