Eli5: What is gdp? Why its so important? And why a lot of polls not using it are said to be misleading?
In: Economics
Gross Domestic Product. It’s the total value of everything – all goods and services – produced in a country during a specific time period, usually a year.
GDP it gives us a snapshot of how well a country’s economy is doing. If GDP is going up, it means the economy is growing, people are buying more stuff, businesses are doing well, and there’s more money moving around. If GDP is going down, the opposite is happening: the economy might be shrinking, people are buying less, businesses are struggling, and there’s less money in circulation.
Polls or statistics that don’t use GDP can bee misleading because they might not be considering the overall economic health or growth. GDP is one of the most comprehensive ways to measure an economy’s size and health. Without it, polls miss the bigger picture or focus on less important numbers, which could give people the wrong idea about how the economy is actually doing.
In other words, GDP is a key piece of the puzzle for understanding a country’s economic condition, and without it, you might not see the full story.
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