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Glossary

What is the GDP Growth?

Real economic growth rate

Definition

GDP growth is the annual percentage change in a country’s inflation-adjusted (real) gross domestic product — the total value of goods and services produced. It is the headline measure of whether an economy is expanding or contracting.

Why it matters

Sustained growth signals rising incomes and employment; a contraction (negative growth) signals recession. It provides context for every other indicator, from unemployment to debt sustainability.

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