Real gross domestic product

Real gross domestic product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation). This adjustments transforms the money-value measure, nominal GDP, into an index for quantity of total output. Although GDP is total output, it is primarily useful because it closely approximates the total spending: the sum of consumer spending, investment made by industry, excess of exports over imports, and government spending. Due to inflation, nominal GDP can increase even when physical output is fixed, and so does not actually reflect the true growth in an economy. Real GDP is derived from current-dollar GDP by valuing output in a way that removes the effects of price change. In the United States, the Bureau of Economic Analysis reports chained-dollar measures that allow output in different periods to be compared. Quarterly U.S. GDP figures are generally seasonally adjusted and expressed at annual rates unless otherwise stated. Different organizations use different types of 'Real GDP' measures, for example, the UNCTAD uses 2015 Constant prices and exchange rates while the FRED uses 2009 constant prices and exchange rates, and recently the World Bank switched from 2005 to 2010 constant prices and exchange rates.

Real GDP contrasts with real gross domestic income, which is adjusted for price changes with a different method.