What economic indicator is primarily used to track the health of a nation's economy?

Gross Domestic Product (GDP) is the primary economic indicator used to gauge the health of a nation's economy because it measures the total value of all goods and services produced within a country over a specific period, typically a year or quarter. An increasing GDP indicates that the economy is growing, as it reflects higher production levels and consumption. A strong GDP suggests that businesses are thriving, jobs are being created, and the standard of living is likely improving for residents.

This measurement not only provides a snapshot of economic performance but also allows for comparisons over time and between different economies. Policymakers and economists often rely on GDP data to inform decisions regarding fiscal and monetary policy, as well as to analyze economic trends.