In this video, you will learn about GDP. Commodities like clothes, vegetables, and services provided by doctors, engineers are all components of a GDP of a country.
Manufacturers produce cars, computers, etc. Doctors and engineers provide services. Hence, you need to add up the value of goods and services over a period of time to obtain the GDP. For example, you can add together all the income in the US for one year, to get the US GDP.
A higher value in GDP indicates that the economy is in good condition. However, GDP does not include certain sectors like child care. It is important to know about the state of the economy of a country. If the economy does well, then the currency of that country will also appreciate. It is important to make a trading decision before buying or selling a currency pair. So, GDP is an important economic indicator, and you need to look in your economic calendar for the release of GDP data.