Gross Domestic Income (GDI)

Gross Domestic Income (GDI) is an economic measure of all the income generated by an economy in a given period of time. It is calculated by adding up all the wages, profits, taxes on production, and production subsidies that are generated in the economy. GDI is considered to be a more accurate measure of economic output than its counterpart, Gross Domestic Product (GDP), because it takes into account depreciation or decline in the value of rented or owned property (e.g., the decline in the value of buildings, equipment, and inventory that are used in production). It is also more accurate because it explicitly accounts for changes in prices due to inflation. GDI can be viewed as an indicator of economic health, with rising GDI reflecting increased economic activity, and falling GDI indicative of slower or negative economic growth.