What is GDP and how is it calculated?
The gross domestic product, short GDP, is the most widespread tool to measure the economy of a country.
“Gross” means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for in new fixed , or for replacing depreciated fixed assets. “Domestic” means that GDP measures production that takes place within the country’s borders.
There are multiple ways to determine the GDP of a country. One common calculation method is the following definition:
GDP = private consumption + gross investmentInvestment is the commitment of money or capital to purchase... More + government spending + (exports − imports)
Or short: GDP = C + I + G + (X – M)
It is most often measured on a quarterly or annual basis. and other will raise or lower their growth forecasts based on the prevailing factors in the economy.
GDP per capita (per citizen of the country) is commonly used as a measure for the quality of living.
Further reading
Learn more about the impact of economic indicatorsIn technical analysis, an indicator is a tool that collects ... More such as the GDP on currencies:
