Economic Growth

Economic Growth is usually defined as annualised growth in GDP adjusted for inflation. Real GDP. GDP measures the market value of the goods and services produced by an economy.

For an Economy, once the phase of the Economic Cycle has been determined, the comparative health of an Economy or rate of Economic Growth can be determined. Economic Growth can be defined as the increase in the value of Goods and Services produced by an Economy. The change in value between the two periods is usually expressed as a percent, then adjusted for inflation. The rate of growth is usually based on an economy’s level of Gross Domestic Product (GDP). The GDP figure is commonly reported quarterly and annually, expressed as an annual change in growth. As it is inflation adjusted it is termed as Real GDP. If growth in GDP is not adjusted for inflation, this is Nominal GDP.