Economics
Gross Domestic Product (GDP)
GDP is the headline scorecard for an economy's size and growth. It is reported quarterly and closely watched for signs of acceleration or slowdown. Growth is usually quoted as an annualized, inflation-adjusted rate.
Strong GDP growth generally supports corporate earnings and employment, while contractions can signal or confirm a recession. Markets react to whether growth beats or misses expectations as much as to the level itself.
Because it captures the whole economy in a single figure, GDP helps investors gauge which phase of the business cycle they are in and how much room central banks have to adjust policy.
Example
Two consecutive quarters of shrinking GDP is a common rule of thumb for a recession, though not the official definition.
Gross Domestic Product (GDP) — FAQ
What is Gross Domestic Product (GDP)?
Gross domestic product (GDP) is the total value of all goods and services produced within a country over a given period, the broadest measure of economic output.
Can you give an example of Gross Domestic Product (GDP)?
Two consecutive quarters of shrinking GDP is a common rule of thumb for a recession, though not the official definition.
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