GDP GDP is defined as the market value of all final goods and services produced domestically in a single year and is the single most important measure of macroeconomic performance. A related measure of the economy's total output product is gross national product (GNP) , which is the market value of all final goods and services produced by a nation in a single year. GDP or GNP? The difference between GDP and GNP is rather technical. GDP includes only goods and services produced by a nation's own citizens and firms . Goods and services produced outside a nation's boundaries by the nation's own citizens and firms are included in GNP but are excluded from GDP . Goods and services produced within a nation's boundaries by foreign citizens and firms are excluded from GNP but are included in GDP . Typically, there is not much difference in the reported values of GDP
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