GDP

Gross domestic product (GDP) is a measure of the total amount of goods and services produced by a country in a specific period of time, usually a year or a quarter. As such, it is the most comprehensive single measure of the total economic output of a country and is used by businesses and economic policy-makers alike to analyse the health of the economy.

It is most commonly calculated by adding together the total amount of investment, consumption, government spending, plus the value of exports minus the value of imports. By dividing the figure by the size of the population you get ‘per capita GDP’, which tells you how productive the average citizen is.

• See Tim Bennett’s video tutorial: What is GDP?

MoneyWeek magazine

Latest issue:

Magazine cover
What George didn't tell you

The hidden flaws in Britain's economy

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


30 March 1867: Russia sells Alaska to the United States of America

With the American Civil War out of the way, US Secretary of State William Seward agreed on a deal to buy Alaska from Russia, on this day in 1867.