Let’s start off with Gross Domestic Product (GDP)! GDP is essentially how much money an economy makes. It’s the overall total amount of goods & services produced in that specific country. It’s important to see a nation’s GDP because it lets us know how well they’re doing as an economy. It’s measured several times over the course of a year and leaders will give an estimate on what they think it’s looking like. If the number ends up being higher than the estimate or the previous GDP, the country’s currency will rise. If it’s lower, it’ll fall!

The reason it’s important not only to us as traders but to other countries to know other country’s GDP, is because they need to see which countries are doing well! It essentially affects trade talks (importing & exporting), pricing, and more.

How does that affect our current trading? Well, the GDP is measured several times over the course of a year and leaders will give an estimate on what they think it’s looking like. If the number ends up being higher than the estimate or the previous GDP, the country’s currency will rise. If it’s lower, it’ll fall!

The United States has the highest GDP followed by China.