Gross Domestic Product (GDP)

What Is GDP?

GDP, or Gross Domestic Product, is a measure used to figure out how well a country's economy is doing. It's like a report that tells us how much money the country is making from everything it produces and sells within its borders.

How Is GDP calculated?

To calculate GDP, we add up the value of all the goods and services produced in a country during a specific time, like a year or a quarter. This includes everything from cars and clothes to haircuts and healthcare. Basically, if someone pays for something, it's part of GDP.

There are three main ways to calculate GDP: