GDPs

GDP, or gross domestic product, is the total market value of all final goods and services produced within the borders of a country in a given period, typically a year or a quarter. GDPs, the plural form, refer to the gross domestic products of multiple countries or regions.

Gross domestic product can be measured in several ways. The expenditure approach adds up consumption, investment, government spending, and net exports (exports minus imports). The production, or value-added, approach sums the value added at each stage of production. The income approach totals wages, profits, rents, and taxes minus subsidies. Most economies publish nominal GDP (current prices) and real GDP (prices adjusted to remove inflation).

GDP is commonly used to gauge the size of an economy, compare economies, and track growth over time. GDP per capita, computed by dividing GDP by population, is a rough indicator of average living standards, though it does not capture income distribution or well-being.

Limitations and caveats include exclusion of non-market activity and informal sectors, environmental degradation, and unpaid work. GDP does not measure inequality, health, education, or happiness. Cross-country comparisons can be distorted by price levels and exchange rate fluctuations; analysts use purchasing power parity adjustments to improve comparability. The concept also omits sustainability considerations and quality of growth.

Official GDP data are produced by national statistical agencies and compiled by international organizations such as the International Monetary Fund, World Bank, and OECD. Related metrics include gross national income and PPP-adjusted GDP, and some analyses consider regional or subnational GDPs.