GDP refers to 'gross domestic product'. Gross domestic product has been used to measure economic growth since 1937. But new tools are needed to measure the wellbeing of countries and their people, experts argue. GDP is based on the total value of all goods and services produced in a country.
What does GDP mean in economics?
It represents the value of all goods and services produced over a specific time period within a country's borders. Economists can use GDP to determine whether an economy is growing or experiencing a recession. Investors can use GDP to make investment decisions—a bad economy often means lower earnings and stock prices.
What is GDP & why does it matter?
What is GDP, how is it measured and why does it matter? Gross domestic product (GDP) is an important tool for measuring how a country's economy is doing. It lets governments work out how much they can afford to tax and spend, and helps businesses decide whether to hire more people.
