ECONOMICS GLOSSARY
GDP
Gross Domestic Product
The total value of final goods and services produced in an economy over a period.
What does GDP mean?
The total value of final goods and services produced in an economy over a period. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
GDP in context
Quarterly GDP growth provides a broad signal of economic activity.
Why it matters in financing
GDP can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related economics terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.