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View Full Version : Gross Domestic Product (GDP)



oussama94
05-28-2017, 00:25
A country’s Gross Domestic Product is the
value of all goods and services produced
within a country in a given time period.
It represents the health of a country’s economy,
Gross Domestic Product (GDP)
High inflation erodes the value of a currency
and is therefore considered very bad for any
economy in most circumstances. Central banks
normally target an inflation level of around
2-3%, and if their target is exceeded, they
usually take action to get back to the desired
levels.
When inflation is high, the market begins to
expect that central banks may increase
interest rates, reducing the supply of money
Inflation
which directly affects the strength of its currency.
GDP is normally released monthly or quarterly,
and the outcome is compared to the country’s
forecasted growth.