Gross Domestic Product (GDP), Eurozone

The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

Gross Domestic Product – measure of the total value of goods and services produced by Euro-zone nations. GDP is the most comprehensive measure of economic output and provides key insight as to the driving forces in the economy.

Due to this report’s lack of timeliness and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, especially if it upsets expectations. The GDP growth rate serves as a broad indicator for the health of Euro-zone economies. Robust GDP growth signals a heightened level of economic activity, which is generally positive. At the same time, economic expansion raises concerns about inflationary pressure, which can prompt the European Central Bank to increase interest rates. Consequently, positive GDP readings are generally bullish for a given currency, while negative readings are bearish.

GDP = C + G + I + NX

where:

“C” is equal to all private consumption, or consumer spending, in a nation’s economy
“G” is the sum of government spending
“I” is the sum of all the country’s businesses spending on capital
“NX” is the nation’s total net exports, calculated as total exports minus total imports. (NX = Exports – Imports)

Release Schedule: 9:00 (GMT); quarterly, about two months after the quarter

Source of Report: Eurostat

Web Address: http://ec.europa.eu/comm/eurostat

Address of Release : http://ec.europa.eu/comm/eurostat