GDP growth forecast: Eastern Europe, U.S., U.K. and Germany 2010-2027

Annual gross domestic product (GDP) growth rates slowed in 2023 as the effects of the high inflation rates hit the global economy, even being negative in Germany. In Eastern Europe, the GDP grew by less than 0.3 percent. 

What is GDP?

GDP is an important indicator to measure the economic strength of a country. It is the sum of all the consumption, investment, government expenditures, and net exports in a country. For this reason, consumer confidence can give an idea of future GDP growth. Similarly, stock exchanges such as the S&P 500 index can give an idea of the investment trends in an economy. Government spending tends to be more constant, and net exports are generally a smaller component of overall GDP. In fact, a negative trade balance can fuel an economy by boosting domestic consumption and investment.

Not included in GDP

GDP does not account for some factors. For example, existing infrastructure is not a part of the GDP calculation, though a thriving economy would be impossible without it. Nevertheless, GDP is the most widespread measure of economic performance because of its simplicity and wide scope.