What does gdp mean? What is the use of gdp?

At the beginning of a year, there will be statistical tables of the GDP and per capita GDP of each province in the country and every country in the world. We know that the higher the GDP, the better, which means the better the economic development, but there are Some people don’t understand GDP, so what exactly is GDP? Let’s talk about it together below.

The Chinese name of GDP is Gross Domestic Product, which refers to the final results of economic production activities of a country or region within a certain period of time. It is also a recognized indicator that reflects the economic status of a country and reflects the status of a country or region. economic strength.

GDP is not actually suitable to reflect the economic status of a city, because the amount of each city's contribution to the country is different, so the gross product of each city will also be different.

In 2017, my country's total GDP reached 82,712.2 billion yuan, reaching the 80 trillion yuan threshold for the first time. Compared with 2016, it increased by 0.2 percentage points and increased by 6.9% year-on-year. This is also the first acceleration of my country’s economic growth since 2010.

In 2018, my country's GDP exceeded 90 trillion yuan. According to preliminary calculations, the GDP in 2018 reached 90,030.9 billion yuan, a year-on-year increase of 6.6%.

What is the use of GDP?

GDP reflects the country’s economic status. A country or region’s GDP growth rate is large, which means that the country’s economy is developing rapidly and its national income continues to grow. As consumption increases, consumption power and consumption levels will also become stronger. Typically in this situation, the central bank will raise interest rates, thereby increasing the attractiveness of the country's currency.

On the contrary, if the GDP of a country or region experiences negative growth, it means that the country's economic development is in recession. The country's national income will decrease and its consumption capacity will also decrease. In this way, the central bank may Interest rates will be cut to stimulate consumption and allow the economy to grow again. In the case of average economic performance, the attractiveness of the country's currency will also decrease.

So, GDP is an important statistical indicator, and it also reflects the most intuitive economic strength and market size of a country and region. Countries with high economic growth rates will push up their currency exchange rates. , low economic growth will lead to a fall in the exchange rate.