EUROSPENDINGEuro Economics
← Blog
2026-05-23

GDP and real growth

The size of the economy in euros, and how fast it is actually growing once inflation is removed.

Gross Domestic Product (GDP) is the total value of everything an economy produces. We show two related things.

Why real, not nominal

Nominal GDP can rise simply because prices rose. Real growth removes that effect, so a positive number means more actual output. Two consecutive quarters of negative real growth is the common rule-of-thumb definition of a recession.

The bigger picture

EU real growth has tended to run slower than the United States for two decades. Comparing the growth series across regions is the heart of the "is the EU falling behind?" question.

Source: Eurostat national accounts (annual and quarterly).

#explainer#growth