What is GDP?

GDP is the most widely used measure of the size and health of an economy. It can be calculated by adding up spending by households, businesses and government, plus exports minus imports. The modern concept was developed by economist Simon Kuznets for the US Congress in 1934 and became a global standard after the 1944 Bretton Woods conference. The United States has the largest GDP, at around 27 trillion dollars in 2023, followed by China. GDP per person gives a better sense of average living standards, though it does not measure inequality, wellbeing or environmental damage.