The Impact of GDP on the country's economy

 

                The Impact of GDP on the country's economy 

GDP is one of the primary and major indicators to define the goodwill and betterment of the country. The country's economy is also directly related to growth and decline of the country's GDP. People's daily earning income and lifestyle are also determined on how the GDP of the country is represented. 
Many people might be unaware of this topic. So, 

WHAT IS GDP ?
According to the investopedia, " Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period."

Simply, GDP is the final monetary value of the goods and services produced within the country in a specific period of time.

GDP is very important to determine the country's stance economically. It provides us the information about the size of the economy and how well the economy of the country is growing. If the GDP of a country grows then there will be economic development and prosperity, if there is economic development then there will be establishment of large national and international companies, industries and factories which in turn will bring employment and job opportunities to many unemployed people. It also helps in proper and effective utilization of natural resources for the country's own benefit. In this way GDP helps in improving the country's economy.

GDP tends to grow when the total value of the exported goods and services exceeds the total value of the imported goods and services. This results in trade surplus. Whereas decrease in GDP may result to a unpleasant trade deficit. 

 GDP growth can be maintained through continuous production and export of quality and goods and services. This will result in trade surplus of a country which successively helps in the economic growth of a country.