Real GDP — Inflation-Adjusted Historical Chart
GDPC1Real GDP (inflation-adjusted) is the true measure of economic growth. The Fed, economists, and markets focus on this to separate genuine expansion from inflation-driven revenue gains.
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Series IDGDPC1
FrequencyQuarterly
UnitsBillions of Chained 2012 Dollars
SourceFRED / St. Louis Fed
Observations0
Related — Economic Output & Business Activity
SOURCE: FEDERAL RESERVE ECONOMIC DATA (FRED) · 0 OBSERVATIONS
Real GDP strips out the effects of inflation from GDP growth, showing actual changes in economic output. It is the standard measure used to determine recessions, calculate long-run growth trends, and compare economic performance across time periods.
Related Economic Indicators
Frequently Asked Questions
- Why use real GDP instead of nominal GDP?
- Nominal GDP can increase simply because prices rose, not because more goods were produced. Real GDP removes this inflation distortion, giving a cleaner picture of actual economic output growth.
- How does the BEA calculate real GDP?
- The BEA divides nominal GDP by the GDP price deflator (a price index for the overall economy) to remove inflation. The result is expressed in "chained 2012 dollars" — what the economy would have produced if prices stayed at 2012 levels.
- What is potential GDP?
- Potential GDP is the level of real GDP the economy could produce at full employment without creating inflation. When actual GDP exceeds potential, the economy is "overheating" — inflationary pressure builds. When actual GDP is below potential, there is an "output gap".
- How is real GDP used as a recession indicator?
- Two consecutive quarters of declining real GDP is the informal recession threshold. The NBER, which officially dates US recessions, uses real GDP as one of its key indicators alongside employment and income data.
Economic data sourced from the Federal Reserve Bank of St. Louis (FRED). Data is updated according to the release schedule of the issuing agency. Provided for informational purposes only and does not constitute investment advice.