Economic Growth Rate

Economic Growth Rate

A measure of economic growth from one period to another in percentage terms. This measure does not adjust for inflation, it is expressed in nominal terms.

In practice, it is a measure of the rate of change that a nation's gross domestic product goes through from one year to another. Gross national product can also be used if a nation's economy is heavily dependent on foreign earnings.

Notes:

The economic growth rate provides insight into the general direction and magnitude of growth for the overall economy. In the United States, for example, the long-term economic growth rate is around 2-5%, this lower rate is seen in most highly industrialized countries. Fast-growing economies, on the other hand, see rates as high as 10% although this rate of growth is not likely to be sustainable over the long term.

See also: Boom, Business Cycle, Economic Growth, Economics, Economy, Expansion, Gross Domestic Product - GDP, Gross National Product - GNP, Nominal GDP, Recession

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Economic growth rate

The annual percentage rate of change in the Gross National Product.