GDP is an abbreviation for Gross Domestic Product.
GDP measures the value of final goods and services produced within a defined
geographical area, in a given period of time. Thus, the GDP of the United States
includes the output of U.S. offices or establishments of foreign companies located
in the United States, and it excludes the output of foreign offices or establishments
of U.S. companies located outside the United States.
While GDP is used as an indicator of economic progress, it is not a measure of
well-being (for example, it does not account for rates of poverty, crime, or literacy).
GDP is one of the most comprehensive and closely watched economic statistics: It
is used by the White House and Congress to prepare the Federal budget, by the
Federal Reserve to formulate monetary policy, by Wall Street as an indicator of
economic activity, and by the business community to prepare forecasts of economic
performance that provide the basis for production, investment, and employment
|What is GDP (Gross Domestic Product)?