Gross domestic product, GDP, is defined as the total value of all goods and services produced within that territory during a given year. GDP is designed to measure the market value of production that flows through the economy.
• Includes only goods and services purchased by their final users, so GDP measures final production.
• Counts only the goods and services produced within the country's borders during the year, whether by citizens or foreigners.
• Excludes financial transactions and transfer payments since they do not represent current production.
• Measures both output and income, which are equal.