Economic Growth Rate


DEFINITION of '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.

Economic Growth Rate

BREAKING DOWN 'Economic Growth Rate'

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.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Business Cycle

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  3. Mature Economy

    A mature economy is the situation where the country's population ...
  4. Negative Growth

    A contraction in a country's economy, as evidenced by a decrease ...
  5. Recession

    A significant decline in activity across the economy, lasting ...
  6. Gross National Product - GNP

    Gross National Product (or GNP) is an economic statistic that ...
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  1. Is Colombia an emerging market economy?

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  3. How is the rule of 70 related to the growth rate of a variable?

    The rule of 70 is related to the growth rate of a variable because it uses the growth rate in its approximation of the number ... Read Full Answer >>
  4. How can I use the rule of 70 to estimate a country's GDP growth?

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