Q: What is GDP and how is a country's GDP estimated?
A: A country's Gross Domestic Product (GDP) is nothing but a way of measuring the size of its economy. It can be considered as the market value of all goods and services produced within the country in a given time frame.
The famous GDP equation is as follows -
GDP = C + I + G + (X-M)
C -> total Consumption in the country (e.g., food)
I -> total Investment in the country (e.g., construction of a new oil field)
G -> total Government spending in the country (e.g., salaries of civil servants)
X -> total eXports
M -> total iMports
And where to get the numbers to plug into this equation? Wish it were that simple, that is a big course by itself, on what to include and what not to include.