GDP (Gross Domestic Product) measures the total monetary or market value of all final goods and services produced within a country's borders during a specific time period, such as a quarter or a year
. It reflects the overall economic activity and output generated domestically. GDP can be calculated in three main ways, which theoretically yield the same result:
- The production (or output) approach , which sums the value added at each stage of production across all industries
- The income approach , which totals all incomes earned by factors of production, such as wages and profits
- The expenditure approach , which adds up all spending on final goods and services by households, businesses, government, and net exports (exports minus imports)
GDP serves as a comprehensive scorecard of a country's economic health, indicating the size of its economy and its growth rate over time
. It includes consumption, investment, government spending, and net exports as its main components
. In summary, GDP measures how much is produced, spent, and earned in an economy within a given period, providing a snapshot of economic performance and growth
