What’s an acronym between friends. GDP, GDI, CPI

GDP is the Gross Domestic Product and is used by economist to measure national economies by size.

GDI is the Gross Domestic Income and is a measure of a nation’s economic activity based on all the money earned.

In theory, GDI should be identical to GDP which has been showing more strength than expected. GDI on the other hand has been negative for two consecutive quarters.

Think of it this way. GDP is the value of the goods, services and technology. GDI is what all participants in the economy make like wages, profits and taxes. Right now the trending data is telling us we are making more but getting paid less.

Look at the Blue GDP and Green GDI lines.


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