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What number shows the total value of everything made in a country each year?
Updated: 11-Apr-2025

That’s GDP—Gross Domestic Product. It measures the total value of all goods and services produced within a country's borders during a specific time, usually a year. GDP is a key indicator of economic health. A growing GDP means the economy is expanding, jobs are increasing, and businesses are thriving. A shrinking GDP could signal a recession.

Economists also compare GDP per capita to measure how prosperous citizens are. It helps governments, investors, and businesses make decisions. However, GDP doesn’t account for income inequality or environmental damage, so it’s one of many tools used to assess development.

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