What is Economy?

An economy is a financial ecosystem of a region or country. It refers to the money generated based on the production, distribution, exchange, and consumption of goods and services inside it.

Why is it important?

Gross Domestic Product depicts the complete economic activity in a country. The more the GDP, the better the growth of a country. Better growth means an increase in production, investment and employment. All these parameters define the economic health of the country. And that is why countries meticulously analyse the GDP numbers and growth regularly. 

Now you know the basics of a country’s economy and that it is measured in GDP.