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
The hunt for water

The most valuable commodity

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

Robert Shiller: why one of the world's smartest economists is worried about the bond market

Merryn Somerset Webb talks to Yale professor and Nobel Prize winner Robert Shiller about how the power of 'stories' drives the global economy and creates financial bubbles.


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.


27 February 1900: The Labour Party is launched

Responding to the need for a single political party to represent the trade unions, the Labour Party was formed on this day in 1900, led by MP Keir Hardie.