The Analyst's Path

Glossary

Real gross domestic product

M7.01

Also called real GDP, GDP at constant prices.

Output measured at constant prices, so that growth reflects volume rather than price increases.

An economy growing 6.7% in nominal terms with 4.5% inflation grew 2.2% in real terms.

The distinction decides whether a country is producing more or simply charging more, and confusing the two is the commonest error in reading emerging-market economic data.

Corporate revenue is a nominal number and should be compared to nominal growth.