UK GDP falling by 20.4%

Question

What does it mean?

In: Economics

Answer 1

Gross Domestic Product (GPD) is all the goods and services produced in a country in a given period. It is supposed to represent how productive a country is. More stuff made, higher gdp. You are making 20% less stuff, there is 20% less new stuff available.

For perspective:

The UK has about 66 million people and a GDP of 2.85 Trillion or 2850 billion.

Tanzania has 59 million people and a GDP of 58 billion.

Losing 20% of trillions of dollars is…many dollars.