View source for Finance:Real gross domestic product

{{short description|Macroeconomic measure}}
'''Real gross domestic product''' ('''real GDP''') is a [[Finance:Macroeconomics|macroeconomic]] measure of the value of economic [[Finance:Output (economics)|output]] adjusted for price changes (i.e. inflation or [[Finance:Deflation|deflation]]).<ref>{{cite web|url=https://www.investopedia.com/terms/r/realgdp.asp|title=Real Gross Domestic Product (GDP)|first=Will|last=Kenton|website=Investopedia.com|access-date=2 April 2019}}</ref> This adjustment transforms the money-value measure, [[Finance:Gross domestic product#Nominal GDP and adjustments to GDP|nominal GDP]], into an [[Finance:Index (economics)|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 [[Organization:United Nations Conference on Trade and Development|UNCTAD]] uses 2015 Constant prices and [[Finance:Exchange rate|exchange rate]]s while the [[Finance:Federal Reserve Economic Data|FRED]] uses 2009 constant prices and exchange rates, and recently the [[Organization:World Bank|World Bank]] switched from 2005 to 2010 constant prices and exchange rates.<ref>{{cite web|url=https://fred.stlouisfed.org/series/GDPC1|title=Real Gross Domestic Product|last=U.S. Bureau of Economic Analysis|date=1 January 1947|website=FRED, Federal Reserve Bank of St. Louis|access-date=2 April 2019}}</ref><ref name="unctad.org">{{cite web |title=UNCTADstat - Table view |url=https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=95 |access-date=30 January 2024 |website=Unctadstat.unctad.org}}</ref><ref>{{cite web|url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD?year_high_desc=false|title=GDP (constant 2010 US$) - Data|website=Data.worldbank.org|access-date=2 April 2019}}</ref>

{{Bar chart
| float = center
| title = 10 largest countries by GDP according to the [[Organization:United Nations Conference on Trade and Development|UNCTAD]] at 2015 constant prices and exchange rates, 2021<ref name="unctad.org"/>
| table_width = 70
| bar_width = 50 <!-- must be an unformatted number -->
| data_max = 20,621,847<!-- Upper bound on the values in the data fields -->
| label_type = Economy
| data_type = {{center|Top 10 countries by GDP in 2021 (millions in 2015 constant {{wipe|United States dollar}} and exchange rates)}}
| label1 = (01) '''{{USA}}''' | data1 = 20,621,847
| label2 = (02) '''{{CHN}}''' | data2 = 15,802,052
| label3 = (03) '''{{JPN}}''' | data3 = 4,435,431
| label4 = (04) '''{{GER}}''' | data4 = 3,553,247
| label5 = (05) '''{{GBR}}''' | data5 = 3,036,532
| label6 = (06) '''{{IND}}''' | data6 = 2,782,322
| label7 = (07) '''{{FRA}}''' | data7 = 2,584,045
| label8 = (08) '''{{ITA}}'''  | data8 = 1,861,557
| label9 = (09) '''{{BRA}}''' | data9 = 1,829,902
| label10 = (10) '''{{KOR}}''' | data10 = 1,693,643
}}

== Economic sectors of nations using real GDP ==
[[File:Nations by Industrial Sector output at 2005 constant prices.png|thumb|Nations by industrial sector output at 2005 constant prices]]

{{Bar chart
| float = center
| title = 20 largest countries by industrial output according to the [[Organization:United Nations Conference on Trade and Development|UNCTAD]] at 2015 constant prices and exchange rates, 2021<ref name="unctad.org"/>
| table_width = 70
| bar_width = 50 <!-- must be an unformatted number -->
| data_max = 6,278,120<!-- Upper bound on the values in the data fields -->
| label_type = Economy
| data_type = {{center|Top 20 countries by industrial output in 2021 (millions in 2015 constant {{wipe|United States dollar}} and exchange rates)}}
| label1 = (01) '''{{CHN}}''' | data1 = 6,278,120
| label2 = (02) '''{{USA}}''' | data2 = 3,747,722
| label3 = (03) '''{{JPN}}''' | data3 = 1,282,424
| label4 = (04) '''{{GER}}''' | data4 = 948,804
| label5 = (05) '''{{IND}}''' | data5 = 741,772
| label6 = (06) '''{{GBR}}''' | data6 = 586,343
| label7 = (07) '''{{KOR}}'''  | data7 = 577,653
| label8 = (08) '''{{RUS}}''' | data8 = 449,916
| label9 = (09) '''{{FRA}}''' | data9 = 429,354
| label10 = (10) '''{{ITA}}''' | data10 = 421,859
| label11 = (11) '''{{IDN}}'''| data11 = 406252
| label12 = (12) '''{{CAN}}'''| data12 = 391,590
| label13 = (13) '''{{MEX}}'''| data13 = 363,409
| label14 = (14) '''{{BRA}}'''| data14 = 317,538
| label15 = (15) '''{{TUR}}'''| data15 = 304962
| label16 = (16) '''{{AUS}}'''| data16 = 293,296
| label17 = (17) '''{{SAU}}'''| data17 = 277,097
| label18 = (18) '''{{TWN}}'''| data18 = 264,189
| label19 = (19) '''{{ESP}}'''| data19 = 239,160
}}

{{Bar chart
| float = center
| title = Largest countries by agricultural output according to the [[Organization:United Nations Conference on Trade and Development|UNCTAD]] at 2015 constant prices and exchange rates, 2021
<ref name="unctad.org"/>
| table_width = 70
| bar_width = 50 <!-- must be an unformatted number -->
| data_max = 1,225,193<!-- Upper bound on the values in the data fields -->
| label_type = Economy
| data_type = {{center|Countries by agricultural output in 2021 (millions in 2015 constant {{wipe|United States dollar}} and exchange rates)}}
| label1 = (01) '''{{CHN}}''' | data1 = 1,225,193
| label2 = (02) '''{{IND}}''' | data2 = 453,267
| label3 = (03) '''{{USA}}''' | data3 = 170,409
| label4 = (04) '''{{IDN}}''' | data4 = 139,182
| label5= (05) '''{{NGR}}''' | data5 = 119,864
}}

{{Bar chart
| float = center
| title = Largest countries by tertiary (services) output according to the [[Organization:United Nations Conference on Trade and Development|UNCTAD]] at 2005 constant prices and exchange rates, 2015
<ref name="unctad.org"/>
| table_width = 70
| bar_width = 50 <!-- must be an unformatted number -->
| data_max = 16,763,257<!-- Upper bound on the values in the data fields -->
| label_type = Economy
| data_type = {{center|Countries by tertiary (services) output in 2015 (millions in 2005 constant {{wipe|United States dollar}} and exchange rates)}}
| label1 = (01) '''{{USA}}''' | data1 = 16,763,257
| label2 = (02) '''{{CHN}}''' | data2 = 8,307,397
| label3 = (03) '''{{JPN}}''' | data3 = 2,992,158
| label4 = (04) '''{{GER}}''' | data4 = 2,214,261
| label5 = (05) '''{{GBR}}''' | data5 = 2,124,106
 }}

==Relationship with nominal GDP==
Real GDP is an example of the distinction between real vs. nominal values in [[Finance:Economics|economics]]. Nominal gross domestic product is defined as the [[Finance:Market value|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 [[Finance:GDP deflator|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 <math>t=\frac{Nominal\;GDP_t}{Real\;GDP_t}\times100</math>

Real GDP growth on an annual basis is the nominal GDP growth rate adjusted for inflation. It is usually expressed as a percentage.

[[Social:Nomenclature|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==
<references/>

List of countries by real GDP growth rate

==External links==
* [https://www.google.com/publicdata/explore?ds=r2gb7qq0m55r_#!ctype=l&strail=false&bcs=d&nselm=h&met_y=chain_type_quantity_indexes&scale_y=lin&ind_y=false&rdim=country&idim=country:US&ifdim=country&hl=en_US&dl=en_US&ind=false Google - public data]: GDP and Personal Income of the U.S. (annual): Quantity Index for Real GDP
* [https://www.google.com/publicdata/explore?ds=r2gb7qq0m55r_#!ctype=l&strail=false&bcs=d&nselm=h&met_y=real_gdp&scale_y=lin&ind_y=false&rdim=country&idim=country:US&ifdim=country&hl=en_US&dl=en_US&ind=false Google - public data]: GDP and Personal Income of the U.S. (annual): Real Gross Domestic Product
* [https://www.google.com/publicdata/explore?ds=r2gb7qq0m55r_#!ctype=l&strail=false&bcs=d&nselm=h&met_y=per_capita_real_gdp_by_state&scale_y=lin&ind_y=false&rdim=country&idim=country:US&ifdim=country&hl=en_US&dl=en_US&ind=false Google - public data]: GDP and Personal Income of the U.S. (annual): Real Gross Domestic Product per capita

{{DEFAULTSORT:Real Gross Domestic Product}}
[[Category:Macroeconomic aggregates]]
[[Category:National accounts]]
[[Category:Gross domestic product]]

{{Sourceattribution|Real gross domestic product}}