• GDP (Gross Domestic Product)

    GDP or Gross Domestic Product denotes the market value of all the goods and services produced within a country or a specific region for a given period of time. The goods include the manufactured products, agricultural products and all types of natural resources. The region can be a part of a country or a combination of multiple countries.

    GDP is considered to be the most important indicator of a country’s economic size and standard of living.

    Measurement

    GDP of a country can be measured in three ways and they are

    • Production Approach
    • Income Approach and
    • Expenditure Approach

     All these measures should provide almost equivalent results but most widely used measurement approaches are expenditure approach and income approach. Both of these approaches will be explained now.

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