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The difference between a country's potential gross domestic product and its actualized gross domestic product for the specified time interval. Potential GDP is an economy's maximum, ideal production with high employment across all sectors and maintaining currency and product price stability. The Actual GDP is a country's measured output at any interval. Since the Actual GDP will rarely reach the Potential GDP, the GDP gap is considered a measure of wasted potential output due to a country's unemployment rate coupled with business and government inefficiencies.

GDP Gap = Potential GDP - Actual GDP

Use 'GDP Gap' in a Sentence

The GDP gap created the idea that inefficiencies may exist in the country's economic trading model so this was discussed during the meeting.
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You need to notice if there are any irregularities in the GDP gap and try to figure out a way to fill in the holes.
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The USA's GDP GAP over the specified quarter showed the same, continual increase as seen year after year, for the past decade, and no improvement.
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