Gross domestic product (GDP)
The gross domestic product (GDP) measures an economy’s output in a specified period of time. More specifically, GDP represents the monetary value of all goods and services produced within an economy, as adjusted for intermediate goods and services. GDP can be defined in different ways: using the production approach of calculating GDP, it is the sum total of gross value added by the institutional sectors of an economy plus taxes and less subsidies on products. The expenditure measure of GDP is derived from data on the money spent on goods and services by final end users and includes consumption, investment and exports, minus the value of imports. The income measure of GDP is based on earnings data (compensation of employees, operating surplus/mixed income of the self-employed and depreciation plus taxes on production and imports, minus subsidies). GDP may be measured at current prices (nominal GDP) or adjusted for differences in price levels (real GDP). The rate of change of inflation-adjusted GDP reflects the growth rate of an economy.