Gross Domestic Product (GDP)

Gross Domestic Product values the market based on goods and services produced in a period.

It looks at how much consumers are buying within the country, how much is being sold (exported) to other countries, how much investment is being made into country, how much the government is spending in the country and then decreased by the amount that is has been bought by consumers in the country from outside countries (imports).

The formula is:

GDP =Price Consumption+Investment+ Government Spending+ExportsImports

Often the GDP is divided by the number of people in the country to give the GDP per Capita so that different countries can be compared as to the standard of living within the countries.