Gross Domestic Product (GDP) is the leading indicator of economic activity in a country and tracks the sum of all final goods and services that change hands within its borders in a particular period of time.

Data for the last quarter of 2022 shows that GDP grew by a little over 1%. This trend puts it on pace to grow by around half a percent over this year, roughly in line with a soft landing that regulators hoped for.

In addition to GDP, there are many other indicators that policymakers watch to understand how the economy is performing. The unemployment rate can indicate how easy it is for people to find work, which in turn can affect consumer spending and investment. Consumer spending can also indicate how confident people are in their financial prospects.