Real gross domestic product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation).[1] This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output. Although GDP is total output, it is primarily useful because it closely approximates the total spending: the sum of consumer spending, investment made by industry, excess of exports over imports, and government spending. Due to inflation, GDP increases and does not actually reflect the true growth in an economy. That is why the GDP must be divided by the inflation rate (raised to the power of units of time in which the rate is measured) to get the growth of the real GDP. Different organizations use different types of 'Real GDP' measures, for example, the UNCTAD uses 2005 Constant prices and exchange rates while the FRED uses 2009 constant prices and exchange rates, and recently the World Bank switched from 2005 to 2010 constant prices and exchange rates.[2][3][4]
10 largest countries by GDP according to the UNCTAD at 2005 constant prices and exchange rates, 2015[3]
Economy
Top 10 countries by GDP in 2015 (millions in 2005 constant USD and exchange rates)
Real GDP is an example of the distinction between real vs. nominal values in economics. Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region, usually a country. That market value depends on the quantities of goods and services produced, and their respective prices.
If a set of real GDPs from various years are calculated, each using the quantities from its own year, but all using the prices from the same base year, the differences in those real GDPs will reflect only differences in volume.
An index called the GDP deflator can be obtained by dividing, for each year, the nominal GDP by the real GDP, so that the GDP deflator for the base year will be 100. It gives an indication of the overall level of price change (inflation or deflation) in the economy.
GDP deflator for year
Real GDP growth on an annual basis is the nominal GDP growth rate adjusted for inflation. It is usually expressed as a percentage.
Nomenclature: "GDP" may refer to "nominal" or "current" or "historical" GDP, to distinguish it from the real GDP. The real GDP is sometimes called "constant" GDP because it is expressed in terms of constant prices. Depending on context, "GDP" may also refer to real GDP...
Google - public data: GDP and Personal Income of the U.S. (annual): Quantity Index for Real GDP
Google - public data: GDP and Personal Income of the U.S. (annual): Real Gross Domestic Product
Google - public data: GDP and Personal Income of the U.S. (annual): Real Gross Domestic Product per capita
January 09, 2024
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Real gross domestic product news newspapers books scholar JSTOR August 2012 Learn how and when to remove this template message Real gross domestic product real GDP is a macroeconomic measure of the value of economic output adjusted for price changes i e inflation or deflation 1 This adjustment transforms the money value measure nominal GDP into an index for quantity of total output Although GDP is total output it is primarily useful because it closely approximates the total spending the sum of consumer spending investment made by industry excess of exports over imports and government spending Due to inflation GDP increases and does not actually reflect the true growth in an economy That is why the GDP must be divided by the inflation rate raised to the power of units of time in which the rate is measured to get the growth of the real GDP Different organizations use different types of Real GDP measures for example the UNCTAD uses 2005 Constant prices and exchange rates while the FRED uses 2009 constant prices and exchange rates and recently the World Bank switched from 2005 to 2010 constant prices and exchange rates 2 3 4 10 largest countries by GDP according to the UNCTAD at 2005 constant prices and exchange rates 2015 3 Economy Top 10 countries by GDP in 2015 millions in 2005 constant USD and exchange rates 01 United States 15 160 104 02 China 5 762 185 03 Japan 5 018 510 04 Germany 3 544 225 05 Brazil 3 493 994 06 United Kingdom 2 821 007 07 France 2 406 570 08 Italy 1 766 169 09 India 1 677 339 10 Canada 1 377 908Contents 1 Economic sectors of nations using real GDP 2 Relationship with nominal GDP 3 Notes and references 4 External linksEconomic sectors of nations using real GDP edit nbsp Nations by industrial sector output at 2005 constant prices20 largest countries by industrial output according to the UNCTAD at 2005 constant prices and exchange rates 2015 3 Economy Top 20 countries by industrial output in 2015 millions in 2005 constant USD and exchange rates 01 nbsp United States 3 042 332 02 nbsp China 2 837 667 03 nbsp Japan 1 415 551 04 nbsp Germany 889 336 05 nbsp India 499 519 06 nbsp United Kingdom 468 181 07 nbsp South Korea 454 504 08 nbsp France 415 400 09 nbsp Brazil 409 453 10 nbsp Canada 370 732 11 nbsp Italy 369 751 12 nbsp Mexico 365 959 13 nbsp Russia 277 858 14 nbsp Australia 261 385 15 nbsp Saudi Arabia 256 969 16 nbsp Spain 254 480 17 nbsp Taiwan 204 109 18 nbsp Indonesia 198 254 19 nbsp Turkey 177 586Largest countries by agricultural output according to the UNCTAD at 2005 constant prices and exchange rates 2015 3 Economy Countries by agricultural output in 2015 millions in 2005 constant USD and exchange rates 01 nbsp China 418 455 02 nbsp Brazil 376 768 03 nbsp India 196 592 04 nbsp United States 149 023 05 nbsp Nigeria 77 113Largest countries by tertiary services output according to the UNCTAD at 2005 constant prices and exchange rates 2015 3 Economy Countries by tertiary services output in 2015 millions in 2005 constant USD and exchange rates 01 nbsp United States 11 518 980 02 nbsp Japan 3 502 804 03 nbsp China 2 467 184 04 nbsp Germany 2 064 936 05 nbsp United Kingdom 2 032 516Relationship with nominal GDP editReal GDP is an example of the distinction between real vs nominal values in economics Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region usually a country That market value depends on the quantities of goods and services produced and their respective prices If a set of real GDPs from various years are calculated each using the quantities from its own year but all using the prices from the same base year the differences in those real GDPs will reflect only differences in volume An index called the GDP deflator can be obtained by dividing for each year the nominal GDP by the real GDP so that the GDP deflator for the base year will be 100 It gives an indication of the overall level of price change inflation or deflation in the economy GDP deflator for year t N o m i n a l G D P t R e a l G D P t 100 displaystyle t frac Nominal GDP t Real GDP t times 100 nbsp Real GDP growth on an annual basis is the nominal GDP growth rate adjusted for inflation It is usually expressed as a percentage Nomenclature GDP may refer to nominal or current or historical GDP to distinguish it from the real GDP The real GDP is sometimes called constant GDP because it is expressed in terms of constant prices Depending on context GDP may also refer to real GDP Notes and references edit Kenton Will Real Gross Domestic Product GDP Investopedia com Retrieved 2 April 2019 U S Bureau of Economic Analysis 1 January 1947 Real Gross Domestic Product FRED Federal Reserve Bank of St Louis Retrieved 2 April 2019 a b c d e UNCTADstat Table view Unctadstat unctad org Retrieved 2 April 2019 GDP constant 2010 US Data Data worldbank org Retrieved 2 April 2019 List of countries by real GDP growth rateExternal links edit nbsp Economics portalGoogle public data GDP and Personal Income of the U S annual Quantity Index for Real GDP Google public data GDP and Personal Income of the U S annual Real Gross Domestic Product Google public data GDP and Personal Income of the U S annual Real Gross Domestic Product per capita Retrieved from https en wikipedia org w index php title Real gross domestic product amp oldid 1188774292, wikipedia, wiki, book, books, library,
