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real GDP

The total market value of all final goods and services produced within a country's borders during a specific time period, adjusted for inflation or deflation to reflect the actual volume of production.
Noun

This term is a technical economic indicator used to distinguish actual growth in output from growth caused by price increases. It is almost exclusively used in formal academic, governmental, and financial contexts to provide a standardized measure of economic health over time.

Because it is a specific economic metric, it is treated as an uncountable noun. It does not have a plural form in standard usage, as it refers to a singular conceptual value for a given entity or period.

Meanings

Noun

The total market value of all final goods and services produced within a country's borders during a specific time period, adjusted for inflation or deflation to reflect the actual volume of production.

The country's real GDP grew by 2% last year, indicating a genuine increase in production despite rising prices.

Examples

Real GDP provides a more accurate measure of economic growth than nominal GDP because it removes the effects of inflation.

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real GDP

The government reported a two percent increase in real GDP for the last quarter.

Business

real GDP

If real GDP is shrinking, the country might be entering a recession.

Business

real GDP

Wait, so real GDP tells us if we are actually producing more stuff or if prices just went up?

School Life

real GDP

Economists often look at real GDP per capita to compare the standard of living between different nations.

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real GDP

I wonder if the real GDP will recover by the end of the fiscal year.

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real GDP

The report indicates that real GDP growth has stagnated despite the increase in nominal figures.

Business

real GDP

To calculate real GDP, you must divide the nominal GDP by a price index.

School Life

real GDP

The sudden drop in real GDP surprised the analysts who had predicted a steady climb.

Business

real GDP

Related Words

nominal gdpeconomyinflationdeflatorgrowthproductionoutputconsumptioninvestmentpurchasing powerconsumer price indexmacroeconomicsrecessiondepressionexpansionboomstagnationproductivitystandard of livingper capitawealthincomeaggregate demandaggregate supplyfiscal policymonetary policycentral bankinterest ratehyperinflationdeflationdisposable incometrade balancetrade deficittrade surpluseconomic indicatormarket valueservice sectoragriculturemanufacturingemploymentunemploymentlabor forceopportunity costequilibriumeconomic growthreal incomenominal incomeprice levelpurchasing power parityfiscal yearbenchmarkadjustmentindexation
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