What is gross domestic product (GDP) and how is it obtained?

Gross Domestic Product is a macroeconomic data that focuses on the economic growth in dollar value and in percentage. This data is widely monitored and predicted by some economists and analysis and the actual data comes from the government and this can tell us where the economy lies in the business cycle.

To determine the GDP of a country:

Using the expenditure approach:

GDP = Consumption + Investment + Government Spending + (Exports - Imports)

Using the income approach:

GDP = National Income + Sales Taxes + Depreciation + Net Foreign Factor Income