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 Interest Rate
An interest rate that has been adjusted to remove the effects ... 
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 ...

Markets
Economic Growth
Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period. 
Markets
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 ... 
Markets
Deadly Flaws In Major Market Indicators
These indicators give investors and experts some data to work with, but they're far from perfect measures. 
Markets
Explaining Growth Rates
Growth rate refers to the amount a specific variable or measure has grown over a specified time, whether related to one company or an entire economy. 
Markets
Calculating the GDP Price Deflator
The GDP price deflator adjusts gross domestic product by removing the effect of rising prices. It shows how much an economyâ€™s GDP is really growing. 
Markets
What's the GNP?
Gross national product (GNP) is one of many metrics economists use to measure a countryâ€™s economic output. For any one year, GNP equals the market value of all the goods and services produced ... 
Markets
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. 
Markets
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. 
Markets
What's the Fed Going to do in 2016?
Learn about the factors that contribute to increases in the federal funds rate by the Federal Reserve and key economic indicators for 2016. 
Retirement
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.

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 does it signify if there is a large discrepancy between a nation's real and ...
Discover the differences between real GDP and nominal GDP and what it means when there is a large discrepancy between the ... 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 >> 
Is the nominal value of GDP a sufficient metric for measuring the economy's health?
Find out whether the nominal value of gross domestic product is sufficient for measuring the health of an economy and how ... 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 >>