Gross domestic product (GDP) is the sum of domestically produced goods and services expressed in prices. It is a major indicator reflecting the state of the national economy. GDP is calculated in the following way: GDP = C + I + S + E - M, where C — consumption, I — investment, S — state government expenditures, E — export, M — import. GDP is expressed as an index relative to the previous period, and as an absolute value of the sum of prices for manufactured goods and services.
GDP is the main characteristic of the economic success of countries that measures its economic growth or recovery. GDP growth is an important indicator for the Canadian dollar.