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

India's GDP growth: 6-7% is strong, above 7% is exceptional.

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