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IMPORTANCE OF GROSS DOMESTIC PRODUCT

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  What is GDP? During a specified period of time, the final monetary value of all the goods and services produced within the geographic location like a country is gross domestic product (GDP) . It can   be even a quarter or a year. If we take a given country’s current economic well-being, it functions as a tentative scorecard as a broad measure of overall domestic production of a country. GDP is most often calculated on an annual basis and sometimes calculated on a quarterly time frame as well. An annual report of the GDP estimate for each fiscal quarter and also for the economic calendar  year is released by the government in India.  Importance of GDP   One of the best single indicators of economic growth is GDP growth rate indicator which accurately predicts the size of an economy. GDP is of great importance to central banks and policymakers to judge whether the economy  needs an uplift or needs to be restrained, is contracting or expanding, and if the p...