Real Gross Domestic Product

Real Gross Domestic Product (GDP)

What Does Real Gross Domestic Product (GDP) Mean?

This inflation-adjusted measure reflects the value of all the goods and services produced in a particular year, expressed in base-year prices. Often referred to as constant-price GDP, inflation-corrected GDP, or constant dollar GDP.

Investopedia explains Real Gross Domestic Product (GDP)

Unlike nominal GDP, real GDP can account for changes in the price level and thus provide a more accurate figure. It is important to understand that a rise in GDP does not necessarily indicate growth unless inflation is factored in. Real GDP figures are normally lower than nominal GDP figures.

Related Terms:
• Consumer Price Index—CPI
• Deflation
• Gross Domestic Product—GDP
• Inflation
• Nominal GDP