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Real and Nominal GDP – The Basic Difference
GDP, or Gross Domestic Product is the value of all the goods and services produced in a country.The Nominal Gross Domestic Product measures the value of all the goods and services producedexpressed in current prices. On the other hand, Real Gross Domestic Product measures the valueof all the goods and services produced expressed in the prices of some base year. An example:Suppose in the year 2000, the economy of a country produced $100 billion worth of goods andservices based on year 2000 prices. Since we're using 2000 as a basis year, the nominal and realGDP are the same. In the year 2001, the economy produced $110B worth of goods and servicesbased on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000prices are used. Then: 
Year 2000 Nominal GDP = $100B, Real GDP = $100B
 
Year 2001 Nominal GDP = $110B, Real GDP = $105B
 
Nominal GDP Growth Rate = 10%
 
Real GDP Growth Rate = 5%
 Once again, if inflation is positive, then the Nominal GDP and Nominal GDP Growth Rate will beless than their nominal counterparts. The difference between Nominal GDP and Real GDP isused to measure inflation in a statistic called The GDP Deflator.Pakistan GDP or the Gross Domestic Product of Pakistan decides the growth of Pakistan'seconomy. In spite of the fact that Pakistan is among the highest populated nations and that muchof the citizens do not even earn a decent living, the country is fast improving its economic status.The economy growth of Pakistan is among the top three developing nations in the world, theother two being China and India. The growth percentage of Pakistan GDP was calculated as 8.45% in 2005. Much of the success of the economy owes it to the telecommunication industry as wellas the growing Information Technology sector.
Latest Indicators for Pakistan
 
GDP (official exchange rate): $124 billion (2006 est.)
 
GDP - per capita (PPP): $2,600 (2006 est.)
 
GDP - real growth rate: 6.6% (2006 est.)
 
GDP (purchasing power parity): $437.5 billion (2006 est.)
 
GDP - composition by sector: agriculture: 22%
 
industry: 26%
 
services: 52% (2006 est.)
The good news about the Pakistan economy development is that the government has been trulysuccessful in bringing down the poverty levels very successfully in the last 6 years. The economyof the country has now reached a steady statistics. The proof of this lies in the fact that even afterthe 2005 earthquake, the country was strong enough to sustain the loss
.
 
 
Pakistan GDP - real growth rate
GDP - real growth rate:
6.3% (2007 EST.)
Definition:
This entry gives GDP growth on an annual basis adjusted forinflation and expressed as a percent.
 Equivalent Data From the International Monetary Fund 
Variable:
Gross domestic product, constant prices
Note:
Annual percentages of constant price GDP are year-on-year changes; thebase year is country-specific.
Units:
Annual percent change
Year GDP-Growth Rate real Rank % change Date of Information
2003 4.50 % 48 FY01/02 est.2004 5.50 % 45 22.22 % 20032005 6.10 % 47 10.91 % 20042006 6.60 % 48 8.20 % 20052007 6.60 % 59 0.00 % 20062008 6.30 % 62 -4.55 % 2007
 
 
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03 / 15 / 2010This doucment made it onto the Rising List!
andila_wahidpk

on the document(real and nominal GDP of pakistan) I can see the constant values for gdp, just wanted to make it sure is it GDP per capita or PPP or anyelse. What is this GDP based upon? Thanks! Andila

reply03 / 22 / 2009
andila_wahidpk

dear publisher, Im the student of MSc. International Economics at University of Bradford-Uk, I need to do statistical analysis of pakistan'e conomy by using three variables, GDP, FDI and ULC. I have browzing many website like, UN, World Bank, IMF but couldn't get proper data. Can I get the data for GDP per capita, FDI and ULC, they should be in contant price for the priod 1980-2003(should not be in current values). Expecting positive reponse. Thanks! Andila

reply03 / 22 / 2009
umeedkacharagh

dear andila, i have read ur publishing iam uery impressed by you. iam also interstred in economics . i have compalted m.a economics from univeruty of sindh i want to chat with you please contecy with me at below number i will br remians thank full you . your bestwisher \ hazoor bux babar. ph:03335260817 e-mail hazoor.babar@ yahoo.com thanks

01 / 08 / 2010
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