Definition: What does Gross Domestic Product mean?

The Gross Domestic Product (GDP) is considered an important financial measurement of a country’s success, and is usually calculated on a quarterly and annual basis. It is a measure of the value of all the goods and services produced in the country during the specified time period. When the GDP figure is positive for a quarter, the economy is said to be growing, however if it is negative for two consecutive quarters, the country’s economy is said to be in recession.