Gross Domestic Product Law and Legal Definition

The gross domestic product (GDP) is the most comprehensive single measure of aggregate economic output. It represents the market value of the total output of the goods and services produced by a nation's economy. Unlike the gross national product (GNP) calculation, it does not consider imports or exports in the calculation.

GDP may be calculated in three ways:

  1. by adding up the value of all goods and services produced,
  2. by adding up the expenditure on goods and services at the time of sale, or
  3. by adding up producers’ incomes from the sale of goods or services. GDP measures a country’s economic activity regardless of who owns the productive assets in that country.