GDP measures the total value of all goods and services produced within a nation. It is calculated as consumer spending, business investment, government spending and net exports. GDP fluctuates over time and is influenced by a wide variety of factors. In the United States, GDP growth slows during recessions and accelerates during expansions.
A country’s GDP per capita is a key measure of economic well-being for its residents. It is a measure of the average level of production in the economy relative to the population. GDP statistics are used by central banks and governments to plan spending, taxation and monetary policy. They are also used by businesses to make decisions about expansions and investments. They are released regularly by national statistical agencies and the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA).
BEA estimates GDP three times per quarter. The first estimate, called the advance estimate, is released about a month after the end of the quarter. The second and third estimates incorporate additional source data that were not available in the advance estimate, improving accuracy.
The BEA’s GDP reports for counties, metropolitan areas and other statistical areas include 34 industries’ contributions to local economies. The BEA also releases quarterly and annually GDP statistics for American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.
GDP is measured in a country’s own currency, which makes it difficult to compare across countries. However, economists calculate a version of GDP called real GDP that adjusts for inflation so different periods can be compared.