Finance Library
EconomicsIntermediate 4 min read
GDP
The headline number that measures a country's whole economy.
What it measures
Gross Domestic Product (GDP) is the total value of everything an economy produces in a year — every coffee, car, haircut, and software license added up.
The four pieces
Economists split GDP into Consumption (households), Investment (businesses), Government Spending, and Net Exports (exports minus imports). Households are usually the biggest chunk.
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