Real GDP % Change
Gross domestic product (GDP) is the annual aggregate money value of all final goods and services produced by the economy. GDP changes over time when the output of goods and services changes, and when the prices of these goods and services change. Economic growth occurs when the total output of goods and services increases, while in contrast an economy is said to be in a recession when total output declines for at least two consecutive quarters (six months). Since a change in GDP can be caused by a change in prices rather than a change in output, in order to measure economic growth we must adjust GDP for the effects of inflation. Inflation-adjusted GDP is called real GDP, and it is computed by dividing nominal GDP by the relevant price index.
| 99 Q2 | 99 Q3 | 99 Q4 | 00 Q1 | 00 Q2 | 00 Q3 | 00 Q4 | 01 Q1 | 01 Q4 | 02 Q1 | |
| Y/Y% Change | 6.2 | 6.1 | 6.0 | 6.1 | 6.2 | 5.0 | 3.8 | 4.4 | 5.2 | 5.8 |
........
Quarterly real GDP growth moved up marginally to 6.1 per cent in the first quarter of 2000-01 from 6.0 per cent in the fourth quarter of 1999-2000. Although the second quarter GDP growth improved moderately to 6.2 per cent, this could not be sustained in the third and fourth quarters when the growth rate slowed to 5.0 per cent and 3.8 per cent, respectively. The behaviour of quarterly real GDP growth during 2000-01 mainly reflected the downward movement in the growth rate of the services sector from 8.6 per cent in the first quarter to 6.3 per cent in the fourth quarter. Real GDP growth from agriculture and allied activities at 0.6 per cent in the first quarter and at 0.5 per cent in the second quarter of 2000-01 reversed the absolute declines recorded in the second half of 1999-2000. The moderate acceleration to 1.0 per cent in the third quarter could not be maintained and the real GDP from this sector registered an absolute decline of 1.4 per cent in the fourth quarter of 2000-01. Real GDP growth in industry improved to 6.1 per cent in the third quarter, after dipping to 5.4 per cent in the second quarter from 6.6 per cent in the first quarter of 2000-01. In the fourth quarter, however, it decelerated to 3.2 per cent.
Sources:
ABN Amro;Deutsche Bank; Economist Intelligence Unit; Goldman Sachs;HSBC;ING Barings;J.P. Morgan Chase;Merrill Lynch;Salomon Smith Barney;UBS Warburg.
Dismal Scientist
Reserve Bank of India
Centre Monitering Indian Economy
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- India last edited on 2 November 2001 at 10:21 am by libnt37.gatech.edu