GDP represents the total value of goods and services produced in a country during a period of time and is expressed in dollars. It is expressed as a comparison to the previous quarter. If the GDP is up by 5%, then the economy has grown up by 5%.
There are two ways to calculate the GDP. Using the income approach, all earnings are added up over a year. Using the expenditures method, you add up what everyone has spent.
The income approach makes use of total employee compensation, gross profits for corporations and
GDP is one of the important economic indicator that you should pay attention to, as a forex trader. Low unemployment and growing wages indicate that an economy is doing well. A high GDP figure indicates that the economy is in good condition. Hence, the currency of that currency will appreciate in value.