Gross Domestic Product (GDP) - A measure of total economic activity within a country. GDP attempts to measure the gross added value of all products and services. So, for example, if a factory in Spain was owned by an USA company the output of that factory would be included in the GDP of Spain. In addition, if a citizen of the USA worked in China that work would be included in the GDP of the China.
Often GDP per capita (the amount of economic activity for each person within a country) is used to compare economies of countries. Countries do not all compute GDP in the same way and the variaiton between the accuracy of countries is wide (in general the politics involved result in a desire to show GDP incresing as much as possible).
The USA switched to using the GDP as the primary measure of economic performance from GNP in 1991 (now most all countries use GDP).
Curious Cat Investing Library
Dictionary: PE ratio, Dollar Cost Averaging , Balance Sheet
Topics: China - Economics - Real Estate - Trading
Great Investors Focus: Darvas - Livermore - O'Neil - Soros
Authors: Levitt - Schwager Investment Bookstore