GDP

GDP (gross domestic product) is the total value of final goods and services produced in an economy over a period — usually a year or a quarter. It can be measured as output (value added), expenditure (consumption + investment + government + net exports), or income (wages + profits + rent). It's a flow, not a stock: it measures activity, not wealth. For founders, GDP is a macro backdrop: growth rates and cycles affect funding, hiring, and demand. Don't confuse GDP with welfare or sustainability; use it as a coarse gauge of aggregate activity and a check on "the economy is fine" or "we're in a downturn" narratives.

Use GDP growth as one input to scenario planning — not the only one. When GDP is weak, plan for capital and customer caution; when it's strong, plan for competition and wage pressure. Don't overfit strategy to quarterly GDP; do use it to calibrate "normal" vs "crisis" narratives.

GDP measures total output/expenditure/income in an economy over a period. Use it as a macro backdrop for demand and funding; don't equate it with welfare. Track growth rates and use them in scenario planning.