What does GDP stand for?

GDP stands for gross domestic product, which is the market value of finished goods and services manufactured in a country within a set time frame, typically one year. This includes consumer spending, government spending, industry investments and a country’s exports minus its imports.

GDP is typically used to determine the standard of living and economic health of a country, as well as measure a nation’s productivity. Some critics believe GDP is not accurate because it does not include sales of goods and services that are not reported to the government. GDP was developed in 1934 by Nobel laureate Simon Kuznets.