Gdp Meaning and Definition

Pronunciation

/ɡdaɪp/ 🔊

Part of Speech

Noun

Definition

A macroeconomic measure of the total value of goods and services produced by a country within a specific period, commonly measured by the Organization for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF).

Etymology

The term ‘Gdp’ originates from the 1940s, when it was first used by Simon Kuznets, an American economist. The term is derived from the concepts of ‘gross’ and ‘product’, emphasizing the measure of the total value of goods and services produced.

Usage Notes

Gdp is often used to compare the economic performance of different countries and assess their economic health. It is commonly expressed as an annual percentage change.

Additional Information

Gdp is an important indicator of a nation’s economic well-being, and its growth rate can affect various sectors of the economy, including employment, inflation, and investment opportunities. Gdp is also used to set government taxation and spending policies. In addition, Gdp has its limitations, as it neglects the distribution of income and wealth within a society.

While Gdp provides a snapshot of a country’s economic performance, it does not account for the social and environmental impacts of economic activity. Alternative measures, such as Gross National Happiness (GNH) and Genuine Progress Indicator (GPI), attempt to address these limitations and provide a more comprehensive understanding of a country’s well-being.

Cultural References

Gdp has been referenced in various forms of media, including literature, film, and music. For instance, the novel “Gdp: A Very Short Introduction” by Ha-Joon Chang explores the concept of Gdp and its significance in modern economics.

Idiomatic Expressions or Phrases

• “Economic growth” often implies an increase in Gdp.
• “Economic downturn” often implies a decrease in Gdp.

Related Words or Phrases

• National income
• Gross national product (GNP)
• Per capita

Collocations

• Gdp growth rate
• Gdp per capita
• Gdp inflation rate

Frequency of Use

Gdp is widely used in economic discussions, making it a common term in business, finance, and government contexts.

Common Misspellings

• Gerbera
• GDP-a