What Is GDP and How Does It Affect Markets?

Gross Domestic Product (GDP) is the total value of goods and services an economy produces. The US reports it quarterly as an annualized growth rate, with an advance estimate followed by two revisions.

Why it matters for investors

Strong GDP supports corporate earnings but may keep rates high; two consecutive negative quarters are a common, informal sign of recession.

Common questions

What is real GDP?

Real GDP is adjusted for inflation, so it shows the change in actual output rather than prices.