"Real economic growth" refers to the actual increase in the production and value of goods and services in an economy over a specific period of time. It measures the genuine expansion of economic activity, taking into account inflation and other factors that may affect the overall value of the economy.
Full definition
Without that kind
of real economic growth, stock market rallies can only survive on vapour for so long before crashing painfully back to earth.
Thus,
if real economic growth equals 2 % per year, and population growth equals 2 % per year, then the social discount rate should be zero.
«The markets have been preparing for a significant period of time that rates would be increasing
once real economic growth was evident,» he says.
Stock prices tend to rise during periods of inflation when more dollars are pouring into the markets, independent
of real economic growth.
Much of the market rise has been brought on by government policy, namely low interest rates and quantitative easing, and
not real economic growth that a sustained recovery requires.
«No amount of shallow partisan barbs can change the fact that at every turn, Andrew Cuomo has put his own political interest ahead of
promoting real economic growth in New York State,» Laska said.
Still, China's economy has picked up for now: Capital Economics approximates China's
real economic growth instead of relying on the government's quarterly figures, which are widely thought to be manipulated.
Where these balance sheet improvements are most advanced, future financial distress will look more like what we typically see in instances of financial stress in the major economies — substantial asset price volatility and the potential for substantial financial losses, but less in the way of a significant disruption to either short - run or long -
run real economic growth.
I think we have all waited with baited breath for a long time to see the resiliency of the emerging market economies — as Michael discussed — and it's been heartening to see that play out
through real economic growth.
Analysts suggested that the extra bank holiday would have contributed 0.5 % and the Olympics 0.2 %,
putting real economic growth at 0.3 % - well within the ONS» 0.7 % margin of error.
Buying and holding the broad market is not a wise strategy
considering real economic growth over the next 30 years will likely look very different than the previous 30 years.
Capping world CO2 production would by definition cap world economic growth at the rate of energy efficiency growth, a number at least two points below
projected real economic growth.
I could well be wrong (my view may be too optimistic), but I think the US is in for a year or two of sluggish but not necessarily
negative real economic growth.
The Common Council sees the long - term potential
for real economic growth that will help address the City's fiscal concerns.
Even David Robinson, the well - respected, even - handed business writer for The Buffalo News got into the act, penning a strongly worded column last month that concluded too many IDA deals fail to
promote real economic growth.
With the global economy «floating on an ocean of credit,» the current acceleration of credit via central bank policies will likely produce a positive rate
of real economic growth this year for most developed countries, PIMCO chief Bill Gross writes in his latest monthly commentary, but «the structural distortions brought about by zero bound interest rates will limit that growth and induce serious risks in future years.»
«Part productive, but increasingly destructive, the current acceleration of credit via central bank policies will likely produce a positive rate of
real economic growth this year for most developed countries, but the structural distortions brought about by zero bound interest rates will limit that growth,» Gross concludes.
Using the sensitivity analysis provided by the Department of Finance in the April Budget, a reduction in
real economic growth of 0.6 percentage point would result in deterioration in the budget balance of approximately $ 2.5 billion in 2015 - 16.
Finally, Federal revenues are largely determined by the growth in nominal income — that is
real economic growth plus inflation.
And since changes in GDP reflect inflation, population increase and
real economic growth, GDP also captures the costs of providing a given level of public services.
However, it's also a decision that keeps them from deploying capital to places where it can contribute to
real economic growth.
Real economic growth is a function of two factors: hours worked and productivity growth.
I could also see a scenario where we get a sharp correction in stocks because of a drying up of liquidity, but no slowdown in
real economic growth, as occurred in 1987.
The purpose of the Bernanke - Yellen monetary policy has been to lower longer - term rates and pump up asset prices creating a wealth effect to spur spending and
real economic growth.
«President Clinton's bold leadership created an era of
real economic growth and positive change in the lives of New Yorkers and all Americans.
REAL economic growth and individual opportunity lies in helping students become job creators, not just job seekers.
The new U.S. administration's reduction in the corporate tax rate to 21 %, accelerated depreciation for capital expenditures, roll back in regulation and potential massive infrastructure spending — combined with the fact that the U.S. has never had an eight year stretch of less than 2 %
real economic growth — could result in much higher economic growth in the next few years.
The social discount should not exceed
the real economic growth rate on a per capital basis.
STAGFLATION: Again, stagflation is price inflation with high unemployment and low demand / spending translating to little or
no real economic growth (adjusted for inflation).