What is gross domestic product (GDP)?

Gross domestic product (GDP) measures the value of final goods and services produced in the United States during a period. The Bureau of Economic Analysis publishes estimates in current dollars and in inflation-adjusted terms.

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U.S. Bureau of Economic Analysis GDP primer

Key facts

  • GDP measures production across the economy, rather than a household’s income or savings.
  • Real GDP adjusts for price changes; current-dollar GDP does not.
  • GDP estimates can be revised as more source information becomes available.

Related data

Production across the economy

The Bureau of Economic Analysis measures the value of final goods and services produced in the United States. Counting final products avoids counting the same production again through the materials and services used to make them. GDP describes a period of production, rather than the stock of wealth a country or household holds.

The expenditure view includes consumer spending, investment, government spending and exports, with imports subtracted. Imports are subtracted because imported production is not domestic production, even when imported items are included in the other spending categories.

Current dollars and real GDP

Current-dollar GDP measures output at the prices prevailing in the period. Real GDP adjusts for price changes so that changes in production can be distinguished from changes in prices. A growth figure needs that distinction and its period to be meaningful. A quarterly growth rate and an annual growth rate describe different comparisons.

Estimates and household finances

BEA publishes estimates and revises them as additional information becomes available. A revision can change a past observation; a previously published number is not permanently fixed simply because its period has ended.

GDP is a measure of production across the economy. It does not measure the income, debt or savings of a particular household. Personal income and saving are separate BEA measures, while debt and delinquency have their own sources. Comparing them requires their periods and definitions to remain visible.

Questions about gross domestic product

What does GDP mean?

Gross domestic product (GDP) measures the value of final goods and services produced in the United States during a period. The Bureau of Economic Analysis publishes estimates in current dollars and in inflation-adjusted terms.

What is the difference between real and current-dollar GDP?

Real GDP adjusts for price changes. Current-dollar GDP measures production at the prices prevailing in the period.

Does GDP measure household saving?

No. GDP measures production. Personal saving is a separate measure published by the Bureau of Economic Analysis.

Related terms

  • RecessionA significant, economy-wide decline in activity lasting more than a few months, as dated by the National Bureau of Economic Research's committee.
  • Unemployment RateThe share of the labor force without a job who are actively looking for work or on temporary layoff.
  • InflationA rise in the overall level of prices over time.
  • Consumer Price Index (CPI)The BLS measure of average price changes across 80,000 consumer goods and services — the primary U.S. inflation gauge used for Social Security COLAs and wage adjustments.
  • Real WagesPay adjusted for inflation. Real wages grow only when pay rises faster than prices.
  • Labor Force Participation RateThe share of working-age Americans who are employed or actively job-seeking. It runs well below its 2000 peak, but the participation gap isn't a count of discouraged workers.
  • Purchasing PowerThe goods and services purchasable with a given amount of money.
  • Federal Funds RateThe interest rate banks charge each other for overnight loans, which the Federal Reserve steers into a target range it sets.

Sources and method

We write with assistance from AI tools. Figures come from the data and sources named on this page.