Economy & context
Economic growth is an increase in the inflation-adjusted output of an economy over time, commonly measured through real gross domestic product. It is an aggregate, not a complete measure of wellbeing.
Make it click
A bakery's takings can rise because it baked more loaves or because prices rose. Real growth asks how much actual output changed after separating the price effect.
Now put that into markets
GDP measures production, income or expenditure through related accounts. Markets compare releases with expectations and the implications for profits, rates and policy.
Quarterly data is estimated and revised. Per-capita, sector and productivity measures reveal patterns hidden by the headline total.
Check real versus nominal, annualised convention, period, per-capita basis and revisions. Use several indicators rather than one early estimate.
Growth can be unevenly distributed and environmentally costly, while market prices may fall during strong growth if inflation or rates surprise.
Takeaway
