Trader's Glossary

GDP (Gross Domestic Product)

Gross Domestic Product is an economic indicator that tracks the changes in the total value of goods and services produced by a country or economic region (adjusted for inflation). GDP provides a comprehensive account of economic activity and is regarded as the most important barometer of economic health. With the exception of Canada, which releases its own GDP figures on a monthly basis, GDP is usually reported quarterly. Most countries release three versions of their GDP figures: a Preliminary report, a revised Second Estimate, and a Final version. Even though the Preliminary report is not the most accurate, it tends to have the greatest market impact due to it being released first. When GDP comes in higher than expected, it will tend to have a beneficial effect on the value of the currency in question.