Gross Domestic Product (GDP)

Macro & the Fed

GDP is the value of all final goods and services produced in a country over a period, the basic measure of the size of an economy.

In the US, the BEA first releases quarterly GDP as an advance estimate and revises it twice in the following months. The US reports growth seasonally adjusted and annualized: the quarter-over-quarter change is converted to what it would be over a year if that pace held for four quarters. It should not be compared directly with growth figures that countries such as Turkey report on a year-over-year basis.

Example

If the economy grew 0.5% from one quarter to the next, the US reports it annualized as roughly 2%.

Related Terms

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