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Gross Domestic Product. The total value of everything a country produces.
Why It Matters
GDP is the economy's report card. When GDP grows, companies sell more, hire more, and stocks generally rise. Two consecutive quarters of negative GDP = recession. The US GDP is about $28 trillion - the world's largest.
Key Points
- GDP reports come quarterly and move markets when they surprise expectations
- Real GDP adjusts for inflation - the more accurate measure of true growth
- GDP growth of 2-3% annually is considered healthy for developed economies
Related Terms
Common Questions
Gross Domestic Product. The total value of everything a country produces. GDP is the economy's report card. When GDP grows, companies sell more, hire more, and stocks generally rise.
GDP is the economy's report card. When GDP grows, companies sell more, hire more, and stocks generally rise. Two consecutive quarters of negative GDP = recession. The US GDP is about $28 trillion - the world's largest.
GDP reports come quarterly and move markets when they surprise expectations
Real GDP adjusts for inflation - the more accurate measure of true growth
GDP growth of 2-3% annually is considered healthy for developed economies