Understanding Gross Domestic Product

Gross Domestic Product (GDP) is a measure of the economic output of a country. It represents the total value of all goods and services produced within a country's borders during a specific period of time, usually a year. GDP is used to gauge the overall health of an economy and is a key indicator of economic growth. It is calculated by adding up the value of all goods and services produced, including those produced by foreign-owned companies operating within the country, and subtracting the value of any goods and services that were imported. While GDP is an important measure of economic activity, it does not take into account non-monetary factors, such as environmental quality or social welfare.