Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country’s borders in a specific time period, usually annually or quarterly. It serves as a comprehensive measure of a nation’s overall economic activity and is often used to gauge the health of an economy.

GDP can be calculated using three main approaches: the production approach (total output), the income approach (total income), and the expenditure approach (total spending).

For example, in 2021, the United States had a GDP of approximately $23 trillion, reflecting the total value of all goods and services produced, including consumer spending, business investments, government spending, and net exports.

Another case is that of a developing country, such as India, which had a GDP of about $3 trillion in 2021. This indicates significant economic activity and growth, driven by sectors like technology, agriculture, and services.