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GDP

Gross domestic product: the value of all goods and services produced in a country. Its growth rate is the broadest measure of how the economy is doing.

GDP adds up everything produced in the economy, usually measured as spending by households, businesses and government, plus exports minus imports. Real GDP removes the effect of price rises, so its growth reflects more output, not higher prices.

Australia publishes quarterly GDP growth (not annualised) and the change over the year; the US annualises its quarterly figure.

Why it matters

GDP growth drives company earnings, employment and tax revenue. Strong population growth can lift GDP while output per person falls, so GDP per capita is worth watching too.

See the data: Australian GDP, US GDP.

General information, not advice.