Definition GDP or Gross Domestic Product

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GDP

The GDP or Gross Domestic Product is the total market value of all goods and services produced within a country in one year. This is equal to the total consumer, investment, exports and government spending minus imports. The GDP only considers the goods and services produced within a geographic area irregardless of the producers actual nationality. The GDP numbers are reported in two different forms, the current dollar GDP and the constant dollar GDP. The current dollar GDP uses current day values for the dollar which makes comparing different time frames more difficult due to inflation. The constant dollar GDP accounts for inflation making comparisons between time frames more relevant.

See GNP

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