How is a country’s GDP measured?

GDP or Gross Domestic Product is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. GDP is customarily reported on an annual basis. It is the nation’s broadest gauge of economic health. It includes all of private and public consumption, government outlays, investments and exports and imports that occur within a defined territory. The most common approach to measuring GDP is the expenditure method: GDP = consumption + investment (government spending) + (exports - imports). Another way of measuring GDP is to measure the total income payable in the GDP income accounts. This should provide the same figure as the expenditure method. Another formula is: GDP = rent + interests + profits + statistical adjustments (like corporate income taxes, dividends, undistributed corporate profits) + wages.