Real GDP


Real GDP

Inflation-adjusted measure of Gross Domestic Product.

Real GDP

Gross domestic product after accounting for inflation. Comparing real GDP from year to year shows the amount an economy has grown or shrunk and how this actually affects the economy because they show how the buying power of money has been affected. Nominal GDP, on the other hand, does not account for inflation. For example, if the nominal GDP has grown 10% and the inflation rate is 3%, the real GDP growth is 7%.