What is GDP?

Gross Domestic Product (GDP) is a key indicator of a country's economic performance. It represents the total monetary value of all finished goods and services produced within a country's borders in a specific time period. GDP is often used as a measure of a nation's economic health and is a crucial factor in assessing the overall economic well-being

and standard of living of its citizens. There are three main approaches to calculating GDP: 1.Production or Output Approach: This calculates GDP by adding up the value of all goods and services produced in the country. It is also known as the

Gross Value Added (GVA) approach. 2. Income Approach: This calculates GDP by adding up all incomes earned by individuals and businesses, including wages, profits, and taxes (minus subsidies). 3. Expenditure Approach: This calculates GDP by adding up all expenditures made in the

economy. It includes consumption, investment, government spending, and net exports (exports minus imports). There are also variations like Gross National Product (GNP), which considers the production of a country's residents both domestically and abroad, and Gross National Income (GNI), which

includes net income from abroad. GDP is a vital tool for policymakers, economists, and investors to understand and compare the economic performance of different countries and to formulate economic policies.