Real Gross Domestic Product
Total value of goods and services produced in the U.S., adjusted for inflation (billions of chained 2017 dollars)
Real GDP represents the total economic output of the United States, measured in constant 2017 dollars to remove the effects of inflation. This comprehensive measure of national income and production allows for meaningful comparisons of economic growth over time and is the definitive gauge of U.S. economic health.
Historical Real GDP Chart
Related Indicators
History of GDP Measurement
How GDP is Calculated
GDP measures total economic output using the expenditure approach, which sums all spending on final goods and services:
"Real" GDP removes inflation effects by measuring output in constant dollars (currently 2017 dollars), allowing comparison across different time periods.
Origins of GDP
The concept of Gross Domestic Product emerged from the need to measure national economic activity during the Great Depression:
- 1934 - Simon Kuznets: Economist Simon Kuznets developed the first comprehensive national income accounts for the U.S. Congress, establishing the foundation for GDP measurement.
- 1944 - Bretton Woods: GDP became the standard measure of economic size at the Bretton Woods Conference, helping establish post-war international monetary policy.
- 1991 - GNP to GDP: The U.S. officially switched from Gross National Product (which measures output by citizens) to GDP (which measures output within borders), aligning with international standards.
Methodology Evolution
The Bureau of Economic Analysis (BEA) has refined GDP measurement over decades:
- 1996 - Chain-Weighted Indexes: Replaced fixed-weight methodology with chain-type Fisher indexes, using annually updated weights to more accurately capture changing price relationships.
- 2013 - R&D as Investment: Research and development, plus entertainment originals, began counting as investment rather than intermediate costs - adding approximately $560 billion (3.6%) to measured GDP.
- 2018 - Improved Seasonality: Multi-year project to reduce residual seasonality, addressing systematic first-quarter understatement that had distorted quarterly patterns.
Data Revisions
GDP estimates undergo multiple revisions as source data improves. Each quarter receives three estimates (advance, second, third), annual revisions occur each summer, and comprehensive revisions every five years can adjust the entire series back to 1929.
Current Reading
Understanding Real GDP
Real GDP measures economic output in constant dollars, removing inflation effects. It's the most comprehensive measure of U.S. economic activity.
The U.S. economy has grown from approximately $10 trillion in the late 1990s to over $23 trillion today, representing decades of productivity gains and population growth.
Key Milestones
Release Schedule
GDP is released quarterly by the Bureau of Economic Analysis (BEA), approximately one month after each quarter ends, with two subsequent revisions.
- Advance estimate (1 month after quarter)
- Second estimate (2 months after quarter)
- Third estimate (3 months after quarter)