Measuring economic activity

Gross domestic product measures the value of production within a territory over a given period. It includes goods and services and provides a measure of the size of an economy.

Making accurate comparisons

Total GDP should not be confused with GDP per capita. When studying growth, it is also necessary to distinguish between changes in nominal value and changes adjusted for the effect of prices. International comparisons depend on the method used and the period observed.

The indicator’s limitations

GDP alone does not measure well-being, inequality or environmental quality. Nor does it correspond to the state budget. In the European Union, it is used, among other things, to compare economic activity across economies, but it must be supplemented by other indicators.