Gross Domestic Product (GDP)
The total monetary value of all goods and services produced within a country's borders in a given period.
What is GDP?
Gross Domestic Product (GDP) is the broadest measure of economic output and activity, representing the total monetary value of all finished goods and services produced within a country's borders during a specific time period. GDP is measured quarterly and annually by the U.S. Bureau of Economic Analysis (BEA) and is reported in both nominal terms (current dollars) and real terms (inflation-adjusted). The expenditure approach calculates GDP as: GDP = Consumption + Investment + Government Spending + Net Exports (C + I + G + NX). A growing GDP generally signals economic expansion, job creation, and rising corporate revenues, while two consecutive quarters of negative GDP growth typically indicate a recession.
Example
U.S. real GDP grew by 2.8% in 2024 (annualized), according to the Bureau of Economic Analysis. The U.S. economy is the world's largest, with a nominal GDP of approximately $28 trillion — roughly 25% of global output — as of 2024.