{"id":37906,"date":"2023-08-21T19:18:18","date_gmt":"2023-08-21T19:18:18","guid":{"rendered":"https:\/\/swoopfunding.com\/za\/?post_type=business-glossary&p=37906"},"modified":"2025-04-24T14:48:51","modified_gmt":"2025-04-24T14:48:51","slug":"gross-domestic-product-gdp","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/za\/business-glossary\/gross-domestic-product-gdp\/","title":{"rendered":"Gross domestic product (GDP)"},"content":{"rendered":"
Gross domestic product (GDP) is a fundamental economic indicator that measures the total value of all goods and services produced within a country’s borders over a specific period, usually a quarter or a year.<\/p>\n
Gross domestic product is often used as a gauge of a country’s economic health and the overall size of its economy.<\/p>\n
Key points related to GDP include:<\/p>\n
1. Production and output<\/strong>: GDP quantifies the economic output of a country by summing up the value of all final goods and services produced within its territory. This includes goods like cars, electronics, and agricultural products, as well as services like healthcare, education, and financial services.<\/p>\n 2. Measurement approaches<\/strong>: There are three primary approaches to calculating GDP: the production approach, the income approach, and the expenditure approach. These approaches provide consistent ways to estimate GDP from different perspectives.<\/p>\n 3. Components of GDP<\/strong>: GDP can be divided into several components, including consumption (personal spending), investment (business spending and capital formation), government spending (public sector expenditures), and net exports (exports<\/a> minus imports).<\/p>\n 4. Economic performance<\/strong>: Changes in GDP over time can indicate the direction and strength of an economy’s growth. A rising GDP often suggests economic expansion, while a declining GDP may indicate economic contraction.<\/p>\n