GDP
Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
GDP is the most common measure of a country's economic output and size. It's often used to gauge economic health, but it doesn't account for income distribution, environmental impact, or the value of non-market activities.
Word relationships
- economic output: A more general term for the total production of goods and services.
- national income: Related but refers to the total income earned by a country's residents and businesses.
Commonly confused with
- GNP (Gross National Product): GNP measures the total value of goods and services produced by a country's residents, regardless of where they are located, whereas GDP focuses on production within a country's borders.
Collocations
- real GDP
- nominal GDP
- GDP growth
- per capita GDP
- calculate GDP
- boost GDP
Example sentences
- "The country's GDP grew by 2.5% last quarter, indicating a healthy rate of economic expansion." An economic report.
- "Falling consumer spending could negatively impact GDP figures for the upcoming year." A news headline.
Memory hook
Remember 'Gross Domestic Product' – the 'Gross' total of everything 'Domestically' 'Produced.' Total Production
When not to use
Do not use 'GDP' to refer to a company's revenue or profit; it exclusively measures national economic output.
Fun facts
- Simon Kuznets, an economist, played a key role in developing the concept of GDP in the 1930s.
- Bhutan famously uses 'Gross National Happiness' (GNH) as a measure of national well-being instead of solely focusing on GDP.
Related words
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