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Gross Domestic Product (GDP)

Fundamentals

The total value of a country's economic output — its growth rate is a core driver of currency strength via interest-rate expectations.

Gross Domestic Product measures the total value of all goods and services a country produces over a given period, and its growth rate is one of the most closely watched gauges of economic health. Stronger-than-expected GDP growth tends to support a currency, since it raises expectations of tighter monetary policy; weaker growth tends to weigh on it. GDP is typically released quarterly and often revised, so traders watch both the initial "flash" estimate and later revisions for surprises versus consensus forecasts.

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