- Name
- Real GDP Growth
- Indicator purpose
- (is GDP given in constant prices and refers to the volume level of GDP. Constant price estimates of GDP are obtained by expressing values of all goods and services produced in a given year, expressed in terms of a base period.)1
- Abstract
- This indicator provides a measure of the growth of the economy and the extent of total economic output. It gives an indication of how fast, by how much, and in which sectors the economy is growing. Real GDP is a macroeconomic assessment that measures the value of goods and services produced by an economic entity in a specific period, adjusted for inflation. This entails the preparation of quarterly and annual GDP and other National Accounts Aggregates.
- Contact organization / person
- Statistical Institute of Belize (SIB)
- Unit of measure
- Percentage
- Other characteristics
- Real GDP accounts for changes in price level and provides a more accurate figure of economic growth than nominal GDP. Nominal GDP includes inflation and is normally higher than GDP, but this is not indicative that the economy has actually grown. The base year used is 2000 but is expected to change to 2014.
- Classification used
- Real GDP is an economic indicator which measure the growth of the economy while accounting for inflation. International Standard Industrial Classification of Economic Activities Revision 3.1
- Disaggregation
- 1st, 2nd 3rd and 4th Quarter comparison. Annual comparison
- Key statistical concepts
- Calculation for Real GDP can be done in two basic ways:
i. Production approach: involves summing up the value added of all the respective industries. This includes determining production and subtracting cost of production adjusted for taxes and subsidies.
ii. Expenditure approach: The sum of the values for consumption, government expenditure and the net exports of a country. To get the Real GDP this value is divided by (1+inflation since the base year).
iii. Income Approach: The sum of total national income, sales tax, depreciation and net foreign income. To get the Real GDP this value is divided by (1+inflation since the base year.
- Recommended uses
- Governments use Real GDP as a comparison tool to analyse the economy’s purchasing power and growth over time.
- Other comments
- SIB compiles and publishes real GDP on a quarterly basis. The concepts and definitions adhered to in the compilation of GDP is prescribed within the United Nation’s Systems of National Accounts, version 1993.
- Baseline
- 0.7% (2013)
- Target 2020
- Increase towards 5.0% over medium term
- Target 2030
- At least 5% per annum
