why is real gdp important 
real gdp is informative of the size of the economy and the performance of recent economic activity the real growth rate is often used as a performance indicator as it often provides better guidance on economic conditions due to actual activity as opposed to growth due to inflated prices the bottom linethe real gdp growth rate measures economic growth by measuring gdp from one period to the next taking into consideration inflation it is an indicator of the health of an economy and helps policymakers adjust fiscal and monetary policy in order to achieve economic objectives 