Definition of GDP: (Gross Domestic Product)

GDP is an acronym that is used to abbreviate the concept of Gross domestic product, widely used at the request of the macroeconomy.
Macroeconomics is precisely the part within theeconomywhich deals with addressing all those questions, variables, rather general, that affect a given economy, inasmuch as GDP, is one of those variables that macroeconomics follows when it comes to analyze, for example, the growth of this or that economy.

It should be noted that GDP is also widely referred to as GDP (Gross Domestic Product)So, whether it is GDP or GDP, we must be clear that it will be talking about the same thing.

Knowledge of GDP is so crucial and necessary because it informs us about what the production total goods and services in a nation given and for a specified time. Meanwhile, it is manifested through a monetary value, for example, a billion dollars.

Then, everything that is produced in a specific geographical place, regardless of whether it belongs to own or foreign capitals, and comes from what is known as carrying out a

economic activity formal, that is, not of illicit actions, nor of barters, among others, it should be considered in the GDP and added in the final value of this variable.

Although as we indicated at the beginning of this review, GDP, is a variable that the economy cannot ignore or underestimate, it is also important to clarify that its number does not imply wealth or wealth in most cases. poverty of a nation or the good or bad performance of the economy, and this is basically because the GDP proposes a value that results from the financial activities that are executed in that country but not the framework in which they occur or the consequences they may have.
In other words, there are many actions that have a positive impact on GDP but that are not in the future, in the long term, so good for the nation that is going through them.

Then, we must take GDP as it is, neither more nor less, an economic indicator that will help us to know the increase or the decrease experienced by a country in the production of goods and services and therefore the competitiveness of its Business.

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