what is the real economic growth rate 
the real economic growth rate or real gdp growth rate measures economic growth as expressed by gross domestic product gdp from one period to another adjusted for inflation or deflation in other words it reveals changes in the value of all goods and services produced by an economy the economic output of a country while accounting for price fluctuations understanding the real economic growth ratethe real economic growth rate is expressed as a percentage that shows the rate of change in a country s gdp typically from one year to the next another economic growth measure is the gross national product gnp which is sometimes preferred if a nation s economy is substantially dependent on foreign earnings the real gdp growth rate is a more useful measure than the nominal gdp growth rate because it considers the effect of inflation on economic data the real economic growth rate is a constant dollar figure avoiding the distortion from periods of extreme inflation or deflation to give a more consistent measure calculating the real economic growth rategdp is the sum of consumer spending business spending government spending and total exports minus total imports the calculation for factoring in inflation to arrive at the real gdp figure is as follows the base year is a designated year updated periodically by the government and used as a comparison point for economic data such as the gdp the calculation for the real gdp growth rate is based on real gdp as follows real economic growth can also be calculated by backing inflation out of nominal gdp nominal economic growth is inclusive of inflation while real economic growth is not this calculation is done by factoring in a gdp deflator a gdp deflator is the quotient of nominal gdp divided by real gdp divided by 100 so this method is only useful in determining real gdp if the gdp deflator is already known at the end of 2010 real gdp in the united states was 17 trillion at the end of q1 2024 real gdp was measured at 22 8 trillion 1