Investopedia defines the GDP as “the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.”
So what does that mean in plain English? It means the GDP is an indicator of your standard of living.
If you would like to learn a little more about the GDP, then watch this (U.S.-centric) video. NBC News created this animation to provide a simple explanation of the GDP. (All countries have a GDP; NBC News is focusing on the United States.)
NBCNews.com | December 20, 2013
The Gross Domestic Product, or GDP, is constantly being revived. That‘s because counting all the goods and services sold in the country can be a challenging and overwhelming task. Usually, the government issues at least three versions of the GDP, but last year, the figure was revised all the way back to 1929. Watch this video, reported with CNBC’s Jeff Cox to learn why.
Now will you worry about the GDP of your country? :)