GDP (Gross Domestic Product)

GDP is the headline number for any economy. It measures the total dollar value of everything produced (goods + services) within a country's borders over a specific period — usually a quarter or a year. Strong GDP growth = strong economy = central bank may raise rates = currency typically strengthens. Weak GDP = weak economy = central bank may cut rates = currency typically weakens. The US releases GDP data quarterly in three estimates: advance, second, and third (final). The advance estimate (released about a month after quarter end) is the market mover — by the time the second and third revisions come out, traders have already priced in their best guess. GDP isn't just about the headline number. The composition matters too. GDP driven by consumer spending is generally healthier than GDP driven by inventory build-up or government deficit spending. Pros parse the breakdown line by line.