Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is a key economic health indicator that measures the total value of all goods and services produced within a country over a specific period, usually a quarter or a year.

GDP indicates whether the economy is growing because of increased production of goods and services or contracting because of decreased output when compared to previous periods. It also provides information on how one country's economy is doing compared to other countries' economies worldwide.

The calculation of a country’s GDP includes all private and public consumption, government spending, investments, business and net exports.

Gross (as in Gross Domestic Product) means that goods are included in the calculation regardless of how they are used afterward.

Domestic indicates a geographical inclusion criterion, meaning that products and services produced inside the country's borders are counted, regardless of the producer's nationality.

Lastly, product in GPD stands for production of final goods and services sold on the market.

Final goods and services sold for money are included in GDP. Unpaid labor, goods not produced for sale, bartered goods and services, black market, illegal activities and sales of used goods are not included in GPD.

Overall, GDP is a critical economic measure that provides insights into economic health and influences various financial markets, making it an important factor for traders to consider.