Encyclopedia / Gross Domestic Product (GDP)

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period, often annually. GDP (nominal) per capital does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capital at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between nations.