When we hear about economic growth in the news or other platforms, we often refer it to GDP. GDP stands for growth domestic product and while it may sound complex, the concept is actually pretty simple. If you add it up, the value of all the goods and services produced in a country over a specific period of time, the result will be GDP. Or equivalently, if you add up all the incomes earned by people in the country over the course of the year, this will be GDP to. GDP is one way of measuring the size of a country’s economy. It will also determine whether the economy is growing over time. The citizens with a country with high GDP are likely to have high incomes and high standards of living.

If GDP continuously increases people will be earning and spending more. Businesses will be likely to be hiring and investing more. People are likely to be feeling better of. On the other hand if GDP growth is weak or falling, companies would likely be cutting jobs. People will be earning and spending less. Clearly, GDP isn’t all that matters in life. Nevertheless, economic growth still matters because it is correlated to the improvement of health, wealth and our happiness.