Learn how 'real' and 'nominal' gross domestic product differ, with real GDP being adjusted for inflation and nominal GDP reflecting current monetary values.

There are three different ways to calculate gross domestic product: the expenditure approach, the value-added approach, and the income approach.

Gross domestic product only accounts for consumer spending, investments, government spending, and net exports—meaning factors such as stock market performance, Social Security payments, household labor, and the value of environmental damage largely aren't represented.

In the wake of the Great Depression, a Russian-American economist named Simon Kuznets popularized the formula for gross domestic product to summarize the health of the economy and provide the American government with a metric to track growth.

Explore a breakdown of the US gross domestic product, including GDP's growth over time, the GDP of individual states, and which industries contribute the most to US GDP.

A list of the world's top 25 economies by GDP

Gross domestic product estimates the value of goods and services produced in a country, typically through the expenditure method, which adds up spending by consumers, investors and governments with the value of exports. The top five economies are the US, China, Germany, Japan and India.

Inflation explained in under 3 minutes

Keep seeing inflation in the news, but don't have a great grasp on what it means or how it works? This overview from 1440 breaks down how economists think about inflation, what it means for the average consumer, and how governments attempt to keep rising prices in check through various policies.

'Good deflation' happens when prices naturally track with supply, meaning prices change gradually

This tends to make products and services more affordable and normalizes the standard of living. Bad deflation usually happens when there are sudden changes to either supply or demand. Near-zero [interest rates helped create the real estate bubble that sparked the Great Recession when it crashed](https://www.youtube.com/watch?v=LMo9mD8j7IA&t=91s) Because deflation distorts the value of money, deflation is particularly harmful for borrowers. Low interest rates made it easy for businesses and everyday people to take on enormous debt, which exacerbated the effects of the recession.

Disinflation, a decrease in the rate of inflation, is different from deflation

Disinflation happens when prices are still going up, just at a slower rate. Prolonged disinflation is also often accompanied by a recession, making it painful for consumers.

Ranking the world’s economies: 1980 vs. 2025

The US remains the world’s largest economy, having increased its annual gross domestic product from $2.9T in 1980 to $30.6T in 2025. In 1980, China ranked seventh globally with a GDP of $304B. In 2025, China ranked second with a GDP of $19.4T.

One signal that a recession has become a depression? When GDP declines more than 10%

There’s no single definition for recessions or depressions, but both are marked by sustained periods of declining economic activity. Depressions are more severe than recessions.

Check the current Consumer Price Index

The Consumer Price Index is a metric that attempts to capture price changes felt by consumers by averaging a basket of about 80,000 items, each weighted to reflect the impact of changes on households.

At $159K, Luxembourg has the world's highest GDP per capita (also known as GDP per person) as of June 2026.

There's no single definition of an economic recession, though recessions are commonly identified by two consecutive quarters of shrinking gross domestic product.

Prices can still feel high even if inflation is slowing

This is partly because a recent spike in inflation raised prices permanently, so even though the pace of price growth has slowed, prices have still gone up for good.

Economists define deflation as a sustained decline in prices across an economy

Deflationary periods are characterized by broad, significant price declines. The Federal Reserve can monitor deflation by tracking prices through price indexes, such as the Consumer Price Index (CPI), which characterizes the average costs for consumers each month.

Inflation is a monetary phenomenon in which consumers see a broad rise in the prices of goods and services across the economy over time

Sustained periods of inflation are often caused by central bank policies including low interest rates or increased money supply. With more money chasing the same number of goods and services, prices tend to rise and the value of a single dollar drops.

An updated, comprehensive tracker of global inflation

This tracker provides a visual narrative of inflation rates, central bank policies, consumer price breakouts, and more from nations across the globe.

US state economies compared to entire countries

This map compares US state economies by their gross domestic product to that of a similarly sized country. For instance, California has the largest state economy in the US, with a GDP nearly equal to that of India, the fifth-largest economy in the world. Click here to see how the rest of the states compare.

Many reality TV show prizes have been diluted by inflation, as prize money hasn't increased for many of these competitions in decades.

A recession is commonly defined as two straight quarters of shrinking GDP

Recessions are sustained downturns in the economy. They’re significant, widespread, and there’s no single, surefire way to define or predict them.

Explore 'The Big Mac Index,' an economic indicator created by The Economist as a cheeky reference for the purchasing power of consumers across different countries (paywall may apply).

See comparisons of different countries' taxation strategies

Taxes are a major revenue source for most countries, and how each government taxes citizens often reflects the country's economy. Developed countries tax at much higher rates than developing ones, and as a country grows its GDP, it also typically grows the proportional percentage of taxes it gains from its citizens.

It's tough to measure just how much the global commodities market is worth

That's partly because of all the different ways and places commodities are traded—such as futures exchanges, spot markets, and over-the-counter deals. Additionally, the same commodity can be traded multiple times in different markets, making it easy to risk duplicating trade values in calculations.

After the COVID-19 pandemic, Amsterdam became the first city to apply 'doughnut economics,' a new economic school of thought that defines productivity in terms of environmental impact.

The roughly 11 countries in BRICS, an economic coalition created to counter the G7, collectively hold about 40% of global gross domestic product when adjusted for purchasing power parity.

A gold standard is a system in which a country’s currency is pegged to, and can be converted into, a fixed amount of gold

In principle, this provides price stability as the amount of gold (and therefore the value of the currency) is limited, but also restricts the ability to modulate the money supply during economic downturns.

See a breakdown of every state's portion of the entire US gross domestic product.

Arguments for returning to a gold standard reappear from time to time

However, critics argue that globalization has made the gold standard impractical for modern economies, as it limits a nation’s ability to have a flexible monetary policy—hence, none of today's governments have a gold standard.

Consumer spending accounts for 70% of America's gross domestic product.

Real estate is grouped into broad categories: residential, commercial and industrial

Other categories of real estate include raw land and “special use” real estate, which includes cemeteries. Technically speaking, real estate is considered an alternative investment.

What something costs is reflective of a balance in the market determined by the amount of demand relative to the supply of goods and services

Because economies are complex systems, a wide variety of issues influence this balance—including some things generally considered to be positive, like rising wages.

Roughly $5T of stimulus money flooded the economy during the pandemic

Recessions can last anywhere from months to years. To encourage economic growth, governments use policy levers such as lowering interest rates or introducing a stimulus. Economists credit massive stimulus funds for helping the economy quickly recover from a recession during the COVID-19 pandemic.

'And it can tell us everything about America except why we are proud that we are Americans:' Hear Robert Kennedy's famous 1968 speech criticizing gross domestic product as the primary benchmark for American growth.

US inflation can generally be split into to two periods—before and after the Federal Reserve

A central bank itself does not mean significant inflation will occur, but economists generally point to factors like two world wars and the printing of money to finance the US federal deficit as primary drivers of price increases.

The highest inflation ever recorded in US history was estimated at 30% in 1778, just after the Revolutionary War.

The clearest sign of a recession is a steady increase in job losses and high unemployment.