Plain meaning
A broad measure of the value of goods and services produced in an economy over a period of time.
Also called
nominal GDP
real GDP
Key points
- Real GDP adjusts for price changes and is often used to discuss economic growth.
- Nominal GDP is measured in current dollars and is important for revenue, debt, and fiscal-ratio analysis.
- GDP growth can affect tax revenues, benefit costs, employment, and fiscal planning.
- Governments and central banks often publish GDP forecasts with ranges or scenarios rather than certainties.
- GDP is a broad aggregate and does not show how income or costs are distributed across households or regions.
Why it comes up
GDP appears in budget forecasts, fiscal anchors, debt ratios, Bank of Canada deliberations, and economic-policy news.