Gross Domestic Products (GDP)
What Is Gross Domestic Products (GDP)
Gross Domestic Products (GDP) is one leading economic indicator that gauges the country’s overall economic performance. It measures the country’s economic health. The stats are released quarterly and some are released monthly. What it measures is the market value of all financial goods and services produced within the country.
What Is The Importance Of GDP?
- It tracks the economic health of the country.
- It measures the value of all goods produced within country’s borders.
- Economists uses GDP to determine whether the economy is growing or experiencing recession.
- Investors uses GDP to make investments decisions. Good economy leads to higher earnings and higher stock prices, while bad economy leads to lower earnings and stock prices.
Which GDP Stats Do I Trade?
- United States GDP
- United Kingdom GDP
- Canada GDP
- Australia GDP
- New Zealand GDP
Why Do We (traders) Care?
Since GDP measures the economic health of the country, it has a direct impact on currencies and stocks. As traders, we can benefit from the short term moves of stocks and currencies whether GDP is higher or lower. I published an episode on my podcast about why you shouldn’t ignore fundamentals in your trading. You can listen to this episode HERE. Understanding what moves the markets allows you to plan for your trades and also spend less time in the markets. It also makes sense to understand the markets where you have invested your money.
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The year is almost over and most countries have released their GDP stats. Below are the remaining dates for GDP stats for the year 2022.
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