What is Gross Domestic Product?

A definition of Gross Domestic Product

“Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country’s borders in a specific time period. GDP is used to gauge the health and size of a country’s economy.”

Gross Domestic Product in Business Glossary - What is a Gross Domestic Product?

Business Glossary > What is Gross Domestic Product?


Examples of Gross Domestic Product in a Sentence:

The gross domestic product of a country indicates its economic health.

Analysts project the gross domestic product will increase this quarter.

Investors watch changes in gross domestic product closely to assess market conditions.

Why is Gross Domestic Product Important in Business?

Gross Domestic Product matters because it provides a comprehensive overview of an economy’s health. It helps policymakers, investors, and analysts make informed decisions by indicating economic performance, growth, and living standards.

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Associated Terms

Here are some associated business terms and synonyms for “Gross Domestic Product”:

  • GDP
  • National Output
  • Economic Output

United States Gross Domestic Product

The United States has consistently held the position as the world’s largest economy in terms of gross domestic product. Fluctuations in the U.S. GDP often have significant impacts on global markets and economic policies.

Final Notes on Gross Domestic Product

When evaluating gross domestic product, it’s important to consider the factors that contribute to changes in GDP, such as consumer spending, government spending, and international trade. Understanding these influences helps in analyzing economic trends and making strategic economic decisions.


This has been a definition of Gross Domestic Product meaning.

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