Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country’s economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.
A country’s general economic health can be measured by to king at that country’s economic growth and development. A country’s economic growth is usually indicated by an increase in that country’s gross domestic product, or GDP. Generally speaking, gross domestic product is an economic model that reflects the value of a country’s output.
In other words, a country’s GDP is the total monetary value of the goods and services produced by that country over a specific period of time.