Gross domestic product in real terms
Gross domestic product (GDP) is an aggregate measure of the size of an economy, based on its total final output. GDP can be calculated using different approaches: the output approach; the expenditure approach; and the income approach.
Real or constant price GDP focuses on the volume of output, ignoring price changes. The calculation of the annual growth rate of GDP at constant prices, in other words the real change in GDP, allows comparison of the dynamics of economic development, both over time and between economies of different sizes, regardless of price developments.
Table 1 shows real GDP in…
