GDP (Gross Domestic Product)

Gross Domestic Product is an economic indicator that tracks the changes in the total value of goods and services produced by a country or economic region (adjusted for inflation). GDP accounts for economic activity and is regarded as the most important barometer of economic health. With the exception of Canada, which releases its own GDP figures on a monthly basis, GDP is usually reported quarterly. Most countries release three versions of their GDP figures: a Preliminary report, a revised Second Estimate, and a Final version. Even though the Preliminary report is not the most accurate, it tends to have the greatest market impact due to the fact that is released first. When GDP is higher than expected it tends to have a beneficial effect on the value of the currency in question.