Gross Domestic Product, called GDP, is the most widely used tool in measuring the size of a country’s economy.
Gross domestic product is the market value of all final goods and services locally (within a country), that is, they are produced within the country during a specific period of time. It can be said that it is also everything produced by individuals and companies within the state.
It helps to measure an indicator of the individual’s standard of living within the country, and in other words, the domestic product is a measure of the performance of the economy. The higher the rate of GDP, the greater the size of the overall economy, and thus the total income increases, and in the end it is offset by the increase in the income that the individual gets.
GDP is usually measured on a quarterly or annual basis, and central banks and other relevant institutions raise or lower their growth forecasts based on the prevailing factors in the economy.
The GDP is measured in three ways, which are the output method, the income method, and the expenditure method.