GDP is an important economic release, which often impacts a wide range of markets. Learn how in our interactive widget below.
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time.
Changes in GDP are the most popular indicator of the nation’s overall economic health. It tells us how much the economy would grow or shrink if the growth rate during that period continued for a full year.
The release of GDP data can trigger significant market reactions. A country with strong GDP growth can attract foreign investment, which often strengthens its currency.
If you’re an FX trader, you should watch GDP closely to make informed decisions.
The US Bureau of Economic Analysis (BEA) releases the Gross Domestic Product (GDP) growth on an annualized basis for each quarter. After publishing the first estimate, the BEA revises the data two more times, with the third release representing the final reading.
Usually, the first estimate is the main market mover and a positive surprise is seen as a USD-positive development while a disappointing print is likely to weigh on the greenback.
Market participants usually dismiss the second and third releases as they are generally not significant enough to meaningfully alter the growth picture.