GDP
Business & Finance abbreviation · Economics
| Stands for | Gross domestic product |
|---|---|
| Categories | Business & Finance |
GDP stands for Gross domestic product, an economics abbreviation.
Total market value of all final goods and services produced within a country's borders in a given period, usually a quarter or a year. It is the most widely used measure of the size and growth of an economy, and two consecutive quarters of decline are a common rule of thumb for recession.
Example: US GDP grew at a 2.8 percent annualized rate in the third quarter, beating forecasts.
Usage notes
GDP can be measured by output, by expenditure (consumption plus investment plus government spending plus net exports) or by income, which in theory give the same result. Simon Kuznets developed modern national accounts for the US in the 1930s. Nominal GDP uses current prices, while real GDP adjusts for inflation, and GDP per capita divides by population. In the US, recessions are officially dated by the NBER rather than by the two-quarter rule.
Related abbreviations
More economics abbreviations
- FFR – Federal funds rate
- FOMC – Federal Open Market Committee
- FPI – Foreign portfolio investment
- FTA – Free trade agreement
- FX – Foreign exchange
- GDI – Gross domestic income
- GFC – Global financial crisis
- GNH – Gross national happiness
- GNI – Gross national income
- GNP – Gross national product
- GVA – Gross value added
- HDI – Human Development Index