What does GDP stand for?

Gross Domestic Product, or GDP, is a fundamental economic indicator that measures the total value of all goods and services produced within a country's borders over a specified period, typically one year. This figure is vital as it provides insight into the overall economic health of a nation, allowing comparisons between different economies and tracking growth or contraction over time.

The term "Gross" refers to the total output before accounting for depreciation, while "Domestic" indicates that it deals with production within a country's boundaries, regardless of whether the producers are domestic or foreign entities. "Product" signifies the economic output—both goods and services—produced.

Understanding GDP is essential for analyzing economic performance. It helps policymakers, economists, and investors make informed decisions based on current economic conditions and trends.