Gross Domestic Product (GDP)
Definition
The value of final goods and services produced within a country's borders over a period. Real GDP adjusts for price changes to help measure changes in output.
GDP covers production within a country over a quarter or year. Counting final goods and services avoids counting inputs twice. Economists use real GDP to compare production across periods after adjusting for price changes.
Example
A bakery buys flour for $2 and sells a loaf made with it for $5. GDP counts the $5 final sale once, with $3 of value added by the bakery.
Canada
What does it mean when Canada’s GDP grows?
When real GDP grows, the total volume of goods and services produced has increased. If real GDP grows 1% while the population grows 2%, real output per person falls. Check which measure the headline uses.
Statistics Canada national accounts glossary