Definition of gross domestic product
: the gross national product excluding the value of net income earned abroad
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Recent Examples of gross domestic product from the Web
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The foreign minister of Ukraine represents a country with a gross domestic product of $93 billion, compared to envoys from countries with economies measured in the trillions of dollars.
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The central banks of the eurozone, Japan and Turkey will make policy decisions this week, while the U.S. will see its first reading on gross domestic product for the first three months of the year.
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Global public and private debt swelled to 225 percent of global gross domestic product in 2016, the last year for which the IMF provided figures, the fund said Wednesday in its semi-annual Fiscal Monitor report.
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The nuclear plant shutdowns would also affect the economy, the report argues, reducing the Ohio gross domestic product by as much as $510 million a year and costing as many as 4,200 jobs in Ohio alone.
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Life changed dramatically after the fall of the Soviet Union, which nearly eliminated Cuba's exports and imports, and cut gross domestic product by more than 30 percent in a crisis known as the Special Period.
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Life changed dramatically after the fall of the Soviet Union, which nearly eliminated Cuba's exports and imports, and cut gross domestic product by more than 30 percent in a crisis known as the Special Period.
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The 11 members combined account for about 13 percent of global gross domestic product -- a little over half the U.S. share of 24.5 percent.
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The 55 million Latinos living and working in the U.S. in 2015 produced a gross domestic product of $2.13 trillion, according to the Latin Donor Collaborative.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'gross domestic product.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of gross domestic product
1951
Financial Definition of GROSS DOMESTIC PRODUCT
gross domestic product
What It Is
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.
How It Works
The Department of Commerce releases GDP data for the U.S. economy on a quarterly basis at 8:30 am EST on the last business day of the next quarter.
The equation used to calculate GDP is as follows:
GDP = Consumption + Government Expenditures + Investment + Exports - Imports
The components used to calculate GDP include:
Consumption:
Durable goods (items expected to last more than three years)
Nondurable goods (food and clothing)
Services
Government Expenditures:
Defense
Roads
Schools
Investment Spending:
Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes)
Business inventories
Net Exports:
Exports are added to GDP
Imports are deducted from GDP
The GDP report also includes information regarding inflation:
The implicit price deflator measures changes in prices and spending patterns.
The fixed-weight price deflator measures price changes for a fixed basket of over 5,000 goods and services.
GDP is calculated both in current dollars and in constant dollars. Current Dollar GDP involves calculating economic activity in present-day dollars. This, however, makes time period comparisons difficult due to the effects of inflation. By comparison, Constant Dollar GDP factors out the impact of inflation and allows for easy comparisons by converting the value of the dollar in other time periods to present-day dollars.
Source: Investing Answers
GROSS DOMESTIC PRODUCT Defined for English Language Learners
gross domestic product
Definition of gross domestic product for English Language Learners
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: the total value of the goods and services produced by the people of a nation during a year not including the value of income earned in foreign countries
Learn More about gross domestic product
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Britannica.com: Encyclopedia article about gross domestic product
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