What is a Current Dollar GDP?
The Current Dollar GDP, or just Current GDP, is a means of understanding the most recent calculation of the Gross Domestic Product (GDP) in terms of current year dollars. Sometimes referred to as Nominal or Chained Dollar GDP, comparing the current GDP to the nominal Gross Domestic Product of other years will not account for the impact of inflation on the relative value, unless those other years are also converted into current dollars. In contrast to Current Dollar GDP, Real GDP does account for inflation changes when comparing two or more years. This, in effect, makes for an easier comparison, as it becomes possible to identify the true value of the Gross Domestic Product generated. For example, if the Current Dollar GDP for the most recent calendar year indicated a 10% increase over the previous year, but the rate of inflation stood at 4%, the end result would be a “real” increase in the Gross Domestic Product of only 6%. While the Current Dollar or Nominal GDP does not account for c
