Description
Most people’s eyes glaze over when the term GDP is used in a market outlook or economic report – but it is an important indicator of what’s happening in our economy and the flow-on to everyday Aussies. This article provides a frank explanation of GDP and how it affects us all. It finishes with a recommendation to consult a financial adviser for help in taking control.
Introduction
GDP. If ever there were three letters designed to make us yawn, these would be solid contenders. So why are they so frequently on the lips of politicians, economists and finance journalists? More importantly, what does GDP mean for everyday Australians like you and me? Let’s get the boring bit out of the way first.
What is GDP?
GDP stands for Gross Domestic Product, which is the value of all of the goods and services produced by a particular country. This includes, amongst other things, private and public purchases, government spending, investment, plus the value of exports minus the value of imported goods and services.
Yep, boring.
Except that GDP provides a relatively simple way of conveying the overall strength of a country’s economy which directly affects our lives.
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