The gross domestic product (GDP) is perhaps the most talked about economic indicator. In simple terms, the GDP is the combined market value of all goods and services produced within an economy in a year.
In order to avoid the same things getting counted repeatedly for instance, the tyres on your car getting counted when they are produced as tyres and then again as part of the value of the car, what is actually added up is the value added at each stage, that is the value of the output minus the value of the inputs. In a typical economy, the vast majority of the goods and services are created for consumption domestically while a much lesser quantity is exported to other countries.
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