Economics
What is GDP (Gross Domestic Product)?
GDP measures the total value of all goods and services produced in a country over a period, the single most important indicator of an economy's size and health.
Formula
GDP = Consumption + Investment + Government Spending + (Exports - Imports)
How to Interpret
Rising GDP signals economic expansion; falling GDP may indicate recession. Stock markets tend to track long-term GDP growth plus corporate profit margins.
Typical Ranges
US GDP growth: 2–3% is healthy for a mature economy, above 3% is strong, negative for two consecutive quarters = recession. Or international markets like India: 6–7% is strong, above 7% is exceptional.