an economic indicator that measures the value of all goods and services produced by the economy within its boundaries and is the nation's broadest gauge of economic health. GDP is divided among personal consumption, investment, net exports, and government spending. Consumption makes up roughly two-thirds of the total. GDP is normally stated in annual terms, though data are compiled and released quarterly. The U.S. Bureau of Economic Analysis releases an advance estimate of quarterly GDP, followed by a "preliminary" estimate and a "final" figure. It is reported as a "real" figure, that is, economic growth minus the impact of inflation. The figure is tabulated on a quarterly basis, coming out in the month after a quarter has ended. It is then revised at least twice, with those revisions being reported once in each of the months following the original release. Changes in the GDP of the United States are calculated quarterly and announced in annualized terms (what the annual change would be if the quarter's pace of growth or contraction continued for a year). GDP reports appear in most daily newspapers and on-line at services like America Online. Also visit the federal government statistics Web site on the Internet at www.bea.gov/bea/newsrel/gdpnewsrelease.htm, www.fedstats.gov/, or www.economicindicators.gov. GDP is often a measure of the state of the economy. For example, many economists speak of recession when there has been a decline in GDP for two consecutive quarters. The GDP in dollars and real terms is a useful economic indicator.
total final value of goods and services produced in a national economy over a particular period of time, usually one year. The GDP growth rate is the primary indicator of the status of the economy. The U.S. GDP includes the private and governmental sectors and foreign business operations within the confines of the United States; it does not include overseas operations of domestic corporations. Formerly called Gross National Product (GNP).
market value of the goods and services produced by labor and property in the United States. GDP is made up of consumer and government purchases, private domestic investments, and net exports of goods and services. Figures for GDP are released by the Commerce Department on a quarterly basis. Growth of the U.S. economy is measured by the change in inflationadjusted GDP, or real GDP. Formerly called Gross National Product.
measurement of the nominal value of all goods and services produced in a one year period. This production includes that by United States-owned companies as well as by production plants located in the United States and owned by foreign companies. As GDP increases, there is a tendency for company profits and interest rates to rise as well. Conversely, as GDP decreases, there is a tendency for company profits and interest rates to also decline. These figures are published on a quarterly basis by the UnitedStates Department of Commerce.
