Expenditure Approach, Gross Domestic Product, Total, Chain linked
GDP measures summary value of goods and services generated in a relevant country or region. A region's gross domestic product, or GDP, is one of the ways for measuring the size of its economy.
Market influence of GDP Unexpectedly high quarterly GDP growth is perceived to be potentially inflationary if the economy is close to full capacity; this, in turn, causes bond prices to drop and yields and interest rates to rise. Where the stock market is concerned on one side higher than expected growth leads to higher profits and that's good for the stock market. On the other, it may increase expected inflation and lead to higher interest rates that are bad for the stock market. Larger than expected GDP growth will tend to appreciate the exchange rate as it is expected to lead to higher interest rates.