ELI5: gdp
// explanation
What is GDP?
GDP is like a scoreboard that measures how much stuff a country makes and sells [1][2]. It counts the value of all the final products and services—like cars, haircuts, and video games—that are produced in one country during a certain time [1][2].
Why does it matter?
GDP helps us know if a country's economy is doing well or struggling [3]. When GDP is growing and there's not too much inflation, workers can find jobs more easily and businesses make more money [3].
What does it include?
GDP counts everything from groceries to smartphones to doctor visits—basically any finished product or service sold to customers [1][2]. It doesn't count things like used goods sold secondhand or free activities.
Why use it?
Economists and politicians watch GDP constantly because it's the main way to see if the whole economy is healthy or sick [5]. A bigger GDP usually means more jobs and more wealth for people.
// sources
A comprehensive measure of US economic activity. GDP measures the value of the final goods and services produced in the United States.
Gross domestic product (GDP) is a monetary measure of the total market value of all of the final goods and services which are produced and rendered during a ...
When it is growing, especially if inflation is not a problem, workers and businesses are generally better off than when it is not.
GDP (current US$). Country official statistics, National Statistical Organizations and/or Central Banks; National Accounts data files, Organisation for Economic ...
This entertaining and informative book tells the story of GDP, making sense of a statistic that appears constantly in the news, business, and politics.
Video by CNBC International
Video by IMF
Video by Federal Reserve Bank of St. Louis
