Economy

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country over a specific period, expressed in its national currency. It reflects the size and health of a nation’s economy.

GDP only includes goods and services that are bought and sold in the official market. For instance, if an electrician is paid to fix sockets at work, that service counts toward GDP. But if they do the same job at home without payment, it doesn’t — because there’s no market transaction to measure.

Informal or illegal activities, like black-market sales or unpaid personal work, aren’t counted. Second-hand goods are also excluded as they were already counted when first sold. Including these would make the numbers less accurate.

On TradingView you can track Global GDP or compare countries by GDP to get a bigger picture.

There are several ways to calculate GDP, each offering a different perspective. The most widely used is the expenditure approach, which measures economic activity based on total spending. The idea is simple: the more money spent in an economy, the more goods and services are being produced.

The formula looks like this:

GDP = C + G + I + (X – M)

Where:
C = Consumer spending
G = Government spending
I = Investment
X = Exports
M = Imports

To stay on top of the events that influence GDP and other key indicators, check out our Economic Calendar. For real-time updates and insights, follow the News Flow.

GDP per capita is a universal indicator of a nation's prosperity, calculated by dividing its total GDP by the population. Unlike GDP itself, it reflects both economic output and population size.

However, it has its limits. It’s an average, not a median, so in countries with high inequality, it can give a misleading picture. It also doesn’t account for cost of living differences or whether economic activity is actually beneficial, as its growth may include things like pollution or sales of harmful products.

Explore our list of countries by GDP per capita for deeper insight, and stay up to date with global economic shifts using our Economic Calendar.

As of today, USA has the highest GDP globally — 29.18 T USD. It's more than the values produced by Mainland China and Germany.

Explore GDP by country on TradingView to get a comprehensive view of world economics.

Real Gross Domestic Product is calculated by adjusting GDP for inflation. It gives a better perspective of the real growth of the economy than just pure GDP.

The most precise method to find out real GDP is to know the GDP deflator and use the following formula.

Real GDP = Nominal GDP / GDP Deflator × 100

Check and compare real GDP across the world to stay on top of global trends.

Central banks set interest rates primarily to control inflation and support economic growth. They analyze key indicators like inflation, GDP growth, unemployment, and financial market trends. If inflation is rising too fast, they may raise rates to cool demand; if the economy is slowing, they lower rates to stimulate borrowing and spending.

Many banks use various models to guide decisions, like the Taylor Rule, balancing inflation and output gaps. Each central bank has its own approach and accounts for many factors, including market expectations - it then communicates the decision through policy statements.

For example, in the US, the Federal Open Market Committee (FOMC), a part of the Federal Reserve, is responsible for setting the federal funds rate target range. The federal funds rate is the interest rate at which banks lend to each other overnight, and it plays a key role in influencing overall borrowing costs in the economy.

With TradingView, you can explore key banks and financial system metrics.

As of today, Hong Kong interest rate is 4%.

See the list of countries by interest rate and compare different nations' dynamics on a chart.

Inflation is the rate at which the overall level of prices for goods and services rises over time, leading to a decrease in the purchasing power of money. It's an important economic indicator because it reflects changes in the cost of living and influences central banks’ monetary policies, such as adjusting interest rates.

For traders, inflation is crucial because it affects market expectations, asset prices, and currency values. Rising inflation can lead to higher interest rates and impact borrowing costs and corporate profits, while unexpected changes in inflation can cause volatility in stocks, bonds, and commodities. Monitoring inflation helps traders anticipate market movements and manage risks.

Track inflation-related announcements and other important events in TradingView Economic Calendar.

Inflation, the rate of increase in the cost of basic goods and services, is measured monthly, quarterly, and annually.

Most countries calculate inflation using the Consumer Price Index (CPI). The formula is as follows:

Inflation rate = (CPI[current] – CPI[previous]) / CPI[previous] × 100

To simplify, we take the current prices and divide them by the previous prices. The difference is either inflation, indicating the price growth, or deflation, indicating a price drop.

On TradingView, you can easily track and compare countries by inflation and explore even more economic and price indicators.