Gross Domestic Product

GDP is defined as "the total value of goods and services produced within the borders of the United States, regardless of who owns the assets or the nationality of the labor used in producing that output".^[2] The growth of output is measured in real terms, meaning increases in output due to inflation have been removed.

GDP growth is used to forecast demand for goods and services. Since GDP is an indicator of the economy as a whole, it may not reflect production within various segments of the economy. The U.S. economy continues to mature and growth rates will moderate. The present Federal Reserve policy attempts to hold economic growth to an annual rate of 3 percent.