Real Economic Growth Rate
A measure of economic growth from one period to another expressed as a percentage and adjusted for inflation (i.e. expressed in real as opposed to nominal terms). The real economic growth rate is a measure of the rate of change that a nation's gross domestic product (GDP) experiences from one year to another. Gross national product (GNP) can also be used if a nation's economy is heavily dependent on foreign earnings. Investopedia Says:
The real economic growth rate builds onto the economic growth rate by taking into account the effect that inflation has on the economy. The real economic growth rate is a "constant dollar" and therefore a more accurate look at the rate of economic growth because the real rate is not distorted by the effects of extreme inflation or deflation. Related Terms:
Boom
Deflation
Economic Growth
Economic Growth Rate
Gross Domestic Product - GDP
Gross National Product - GNP
Inflation
Macroeconomics
Nominal GDP
Real GDP |