Gross domestic product

Gross Domestic Product (GDP) is a monetary measure of the market value^[2] of all the final goods and services produced and rendered in a specific time period by a country^[3] or countries.^[4][5][6] GDP is often used to measure the economic health of a country or region.^[3] Definitions of GDP are maintained by several national and international economic organizations, such as the OECD and the International Monetary Fund.^[7][8]

The ratio of GDP to the total population of the region is the GDP per capita and can approximate a concept of a standard of living. Nominal GDP does not reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on the international market.^[9] Total GDP can also be broken down into the contribution of each industry or sector of the economy.^[10]

GDP is often used as a metric for international comparisons as well as a broad measure of economic progress. It is often considered to be the world's most powerful statistical indicator of national development and progress. However, critics of the growth imperative often argue that GDP measures were never intended to measure progress, and leave out key other externalities, such as resource extraction, environmental impact and unpaid domestic work.^[11] Alternative economic indicators such as doughnut economics use other measures, such as the Human Development Index or Better Life Index, as better approaches to measuring the effect of the economy on human development and well being.