GDP is, at its essence, the total value of a country’s production in a given year. The indicators derived from it, such as GDP growth and GDP per capita, are often used as KPIs or major policy
Almost everyone has heard of these three little letters. But what is often forgotten is that GDP is an estimate based on a system of accounting, not a fact of nature. As a result, there are numerous misconceptions about the role of GDP.
This note aims to clear the confusion by explaining what GDP is and what it is not.