The value of everything a country produces

Country A grows 6% a year and country B 1%. This tells you...

A's economy is expanding faster

What GDP counts | TradeLiga

To see whether a country's economy is growing or shrinking, people look at GDP: the total value of all goods and services produced in a year.
It adds up spending: households (consumption), businesses (investment), government, plus exports minus imports.
Growth is the % change. India (about 6–8% a year recently) and Indonesia (about 5%) grow faster than rich economies like Germany or Japan, often below 2%.
In 2020 the pandemic shrank the world economy by about 3%, the deepest global recession since the Second World War. Two quarters of shrinking GDP in a row is a common rule of thumb for recession.
Markets react to the surprise: GDP above forecast usually lifts that country's currency and stocks; a miss can sink them.
Common mistake
Mistake: treating GDP as everyone's income. A country can grow while many people feel poorer. GDP per person, and how growth is shared, matter too.
Key takeaway
GDP is the size of the economy, and its growth rate is the speed. Markets trade the surprise versus forecast.

GDP measures... The value of everything a country producesIt's the total value of goods and services produced in a period, usually a year or a quarter.
A common rule of thumb for recession is... Two quarters of shrinking GDPOfficial bodies look at more data, but two falling quarters is the quick test.
GDP above forecast usually makes that country's currency... StrongerA stronger economy can mean higher interest rates ahead, which attracts money.
Country A grows 6% a year and country B 1%. This tells you... A's economy is expanding fasterGrowth is speed, not size or wealth. B is still growing, just slowly.