What is GDP?published at 06:34 GMT 12 February
Today’s figures show how the UK economy is performing, using a measure called GDP – Gross Domestic Product.
GDP measures the size and health of a country’s economy by assessing how much is produced, spent and earned over a period of time.
But the measure doesn’t tell the whole story, especially important aspects of people’s living standards or how wealth is shared.
Generally, economists, politicians, and businesses prefer GDP to grow steadily – as it means people are spending more, more jobs are being created, and more tax is being paid.
If GDP shrinks for two quarters in a row, this is known as a recession, which can lead to pay freezes and job losses.
