Domesday Live

What is GDP?

GDP, gross domestic product, is the total value of everything produced in the UK in a period. It is the usual measure of the size of the economy, and its growth rate is the headline figure for how the economy is doing. It does not show how the money is shared, or things like unpaid work and wellbeing.

Why it happens

• Three ways to count it. The ONS can add up what is produced, what is spent, or what is earned. They should give the same answer.
• Real and nominal. Growth figures take out price rises, so a 1% rise means more is actually produced, not just that prices went up.
• What it misses. GDP does not count unpaid work like caring, nor environmental damage, and it says nothing about who gets the money.