Gross Domestic Product (GDP)
What is GDP?
Gross domestic product (GDP) is a measure of a country's production using the sum of the final goods and services produced within its borders.
The OECD (Organisation for Economic Cooperation and Development) defines GDP as "an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs)."((http://stats.oecd.org/glossary/detail.asp?ID=1163 Retrieved 12 December 2014)) First developed in 1934, GDP is used to measure the size of a country's economy by adding all private and public consumption, government spending, investments and exports.
GDP can be calculated as:GDP = C + G + I + NX
- C is consumer spending
- G is government spending
- I is investments
- NX is total exports, minus imports
Figured annually, GDP can help determine the efficacy of economic policy. As of 2013, the United States leads the world in GDP, with US$17.4 trillion. Global GDP is nearly US$75 trillion.
Top 10 Countries by Projected 2014 GDP (trillions of US$)
|Country||2014 Projected GDP|
Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
FXCM Research Team
FXCM Research Team consists of a number of FXCM's Market and Product Specialists.
Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.