---
title: "What is GDP?"  
description: "What is GDP?"  
author: "Baishakhi Ghosh"  
published: 2024-07-29  
updated: 2024-09-04  
canonical: https://answers.mindstick.com/qa/113279/what-is-gdp  
category: "economy"  
tags: ["economy"]  
reading_time: 1 minute  

---

# What is GDP?



## Answers

### Answer by Amandeep Kaur

GDP or Gross Domestic [Product](https://www.mindstick.com/articles/324746/promotion-of-product-and-services) is a monetary value of all finished goods produced or services rendered within a [country](https://www.mindstick.com/news/2337/vikram-s-the-country-s-first-privately-developed-rocket-will-launch-on-november-15) in a specified period of time. It functions as a [scorecard](https://www.mindstick.com/articles/126219/icc-world-cup-2019-live-scores-scorecard-news-articles) of economic [health](https://www.mindstick.com/articles/311955/5-tips-for-a-healthy-pregnancy) of that particular country.

There are three ways to measure the GDP economic health of any country-

1 **Income Method** - This method calculate GDP through income earned by all the factors of [production](https://www.mindstick.com/news/2276/by-the-end-of-2023-tesla-cybertruck-mass-production-will-begin) such as **wages**, **rent**, **interest** and **[corporate](https://www.mindstick.com/articles/54942/6-tips-for-organising-a-successful-corporate-event) profit**.

2 **Expenditure Method** – This method includes all the expenditure made by **consumer**, **[business](https://www.mindstick.com/articles/23272/why-software-localization-is-important-for-your-business)**, **[government](https://www.mindstick.com/news/1911/upi-transaction-would-cost-zero-service-charges-clarifies-government)** as well as in the **form of net exports**.

3 **Output Method** – This method calculate GDP by finding the **total value** of **goods** and **services** produced in a country.

Although GDP is calculated on **annual basis**, it is sometimes calculated on a **quarterly basis** as well. GDP provide an **economic [snapshot](https://www.mindstick.com/interview/1903/what-is-a-snapshot)** of a country which is used to estimate the **size** and **[growth](https://www.mindstick.com/articles/332121/what-is-the-importance-of-personal-growth-and-development)** of an **economy**.


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Original Source: https://answers.mindstick.com/qa/113279/what-is-gdp

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