What is the 'Real Economic Growth Rate'
A measure of economic growth from one period to another expressed as a percentage and adjusted for inflation (i.e. expressed in real as opposed to nominal terms ). The real economic growth rate is a measure of the rate of change that a nation's gross domestic product (GDP) experiences from one year to another. Gross national product (GNP) can also be used if a nation's economy is heavily dependent on foreign earnings.
BREAKING DOWN 'Real Economic Growth Rate'
The real economic growth rate builds onto the economic growth rate by taking into account the effect that inflation has on the economy. The real economic growth rate is a "constant dollar" and is therefore a more accurate look at the rate of economic growth because it is not distorted by the effects of extreme inflation or deflation.

Economic Growth Rate
A measure of economic growth from one period to another in percentage ... 
Economic Growth
An increase in the capacity of an economy to produce goods and ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Real Value
Nominal value adjusted for inflation. Real value is obtained ... 
Nominal Interest Rate
The interest rate before taking inflation into account. The equation ... 
Nominal GDP
A gross domestic product (GDP) figure that has not been adjusted ...

Economics
Understanding Interest Rates: Nominal, Real And Effective
Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan ... 
Fundamental Analysis
Deadly Flaws In Major Market Indicators
These indicators give investors and experts some data to work with, but they're far from perfect measures. 
Term
What's a Real Rate of Return?
A real rate of return is an annual percentage investment return thatâ€™s adjusted for inflation, taxes or other factors. 
Economics
Is Infinite Economic Growth on a Finite Planet Possible?
While the finite nature of Earth's resources limits the direction of economic growth, it does not mean that infinite economic growth is impossible. 
Term
The Functional Difference Between GDP and GNP
Both gross domestic product and gross national product try to measure the market value of all goods and services an economy produces. 
Retirement
Inflation: Inflation And Investments
When it comes to inflation, the question on many investors' minds is: "How will it affect my investments?" This is an especially important issue for people living on a fixed income, such as retirees. ... 
Economics
The GDP And Its Importance
GDP is an accurate indication of an economy's size. In terms of its ability to convey information about the economy in one number, few data points can match the GDP and its growth rate. 
Economics
Nominal vs. Real GDP
GDP stands for gross domestic product and is the measure of the total economic output of the goods and services of a country. 
Economics
Explaining The World With Macroeconomic Analysis
Macroeconomists try to forecast economic conditions to help consumers, firms and governments make better decisions. 
Economics
Understanding the Fisher Effect
The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.

Is real GDP a better index of economic performance than GDP?
Learn why real GDP is a better index for expressing the output of an economy, as it takes into account the factors that distort ... Read Answer >> 
What is the benefit of using real GDP over GDP?
Find out why real GDP allows economists to measure changes in the economic growth or decline of a country more accurately ... Read Answer >> 
What is the difference between real and nominal interest rates?
Learn what nominal interest rates and real interest rates are, how real interest rate takes into account the inflation rate, ... Read Answer >> 
What are some alternatives to real GDP?
Learn about economic measures used instead of real GDP and the limitations of real GDP. Find out in which situations nominal ... Read Answer >> 
What does the rule of 70 indicate about a country's future economic growth?
Find out more about the rule of 70, what it measures and what it indicates about a country's future economic growth rate. Read Answer >> 
When do economists use real GDP instead of GDP?
Learn about the purposes for which economists rely on real GDP. Find out how real GDP is calculated and how it is important ... Read Answer >>