What is the Gross Domestic Product?
The Gross Domestic Product, or GDP, is a calculation viewed as the main economic measurement of economic activity and the size of the economy. For example, economic growth, economic decline and economic stagnation. The GDP calculation is as follows:
Gross Private Investment + Government Investment + Private consumption + Net Exports
In simple terms, the GDP figures illustrate the finished value of goods and services within the country. This is released either on a monthly or quarterly basis depending on the country.
Why is it important to the currency?
A high and increasing GDP figure is positive for the currency as it indicates a healthy economy and economic growth. A high GDP figure provides investors confidence and increases the chances of higher interest rates.
Why is it important to the US Stocks?
A high and increasing GDP figure is positive for the currency as it indicates a healthy economy and economic growth. A high GDP figure provides investors confidence and increases the chances of companies experiencing higher profits.