It is neither the money held by the government nor each resident’s income. It adds together value added, with adjustments for taxes and subsidies on products.
Gross domestic product (GDP)
In a nutshell
GDP measures the value created by producing goods and services within a territory over a given period.
On this page
Explained simply
A practical example
Example: agricultural processing, transport and digital services contribute to the production measured by GDP.
Further reading
Source: Insee — Gross domestic product.
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What this means
Turning fruit into juice creates value added contributing to the territory’s GDP.
Educational scenarios. Amounts and rates are fictional, not current market conditions.