Dylan’s Domain – GDP

January 4, 2022

Real GDP increased at an annual rate of 2.3% in the 3rd quarter of 2021. The increase reflected increases in private inventory investment, PCE, state and local government spending, and nonresidential fixed investment. These increases were partly offset by decreases in exports, residential fixed investment, and federal government spending.

Gross Domestic Product measures the value of all final goods and services produced in a country in a given period. This measure includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs, and foreign balance of trade.

GDP is broken down into two sections, real and nominal. Nominal GDP does not account for inflation or deflation, usually resulting in a higher GDP number. Nominal GDP is used when comparing different quarters of output within the same year. Real GDP is calculated using the GDP price deflator, which is the difference in prices between the current year and the base year.

Another measurement of gross production in a country is Gross National Product. GNP differs in that it is a measurement of the production levels of any American-owned business, regardless of where the actual production is taking place.

GDP is important because it is the most common indicator of the economic health of a country, as well as a gauge of a country’s standard of living. GDP is also used to compare the productivity of various countries. Economists use GDP to keep track of a country’s economy. A decrease in GDP can indicate a recession, and an increase can indicate an economic expansion.

Daily Updates

July 22, 2022.

Stocks ended the day lower with the DOW, S&P, and...

July 15, 2022.

Stocks ended the week higher, with the DOW, S&P and...

May 17, 2022.

U.S. stocks closed up today as the market bounced back...

Monthly Updates

Selling to a 21.

September has a well-deserved reputation as the worst month for...

Selling Resumes.

The worst first 6 months for the market in 52...

Best Month Sinc.

Rising interest rates, rising oil prices and rising inflation sent...

Stay up to date with our newsletter