Economic growth

Economic Growth

An increase in the capacity of an economy to produce goods and services, measured over time.

Nominal GDP

Gross Domestic Product measured without adjustments for inflation.

Real GDP

Gross Domestic Product that is adjusted for inflation.

Gross National Product (GNP)

Measures all production activity by a country’s citizens and domestically-owned businesses, including overseas operations.

Gross Domestic Product (GDP)

Measures all production activity within a country’s borders, regardless of who owns the businesses.

Economic Contraction

A decline in national output, indicating reduced economic activity.

Total Personal Consumption Expenditures (PCE)

The total value of all consumer spending in an economy.

Net Exports

Total value of exports minus total value of imports.

Real GDP Growth Rate

The rate at which real GDP increases or decreases, indicating economic growth.

Gross National Income (GNI)

The total income earned by a nation's people and businesses, including income from overseas.

Income Distribution

How income is shared across a population, affecting standard of living.

Per Capita GDP

GDP divided by the population of a country, used to compare living standards.

Standard of Living

The level of wealth, comfort, and material goods available to a certain socioeconomic class.

Inflation Adjustment

The process of factoring out the effects of inflation when measuring economic metrics.

Economic Welfare

A measure of the overall economic well-being of individuals in a nation.

GDP Exclusions

GDP does not include value-added parts manufactured to make a product or illegal goods.

Emerging Market Countries

Nations with social or business activity in the process of rapid growth and industrialization.

Job Creation

The process of creating new employment opportunities within an economy.

Exchange Rate Conversion

The process of converting GDP measured in different currencies for comparison.

Workforce Participation

The proportion of the working-age population that engages in the labor market.

Longevity Correlation with GDP

As real GDP per capita increases, the average lifespan of citizens tends to rise as well.