What Does Economic Growth Mean?

Technically speaking, economic growth means a change in gross domestic product. An example is the sum of the economic goods produced in an economy expressed in values, from one period to the next.

Distinguishing between real and nominal economic growth

Nominal economic growth defines growth as a monetary change in GDP or gross national income. In the case of real economic growth,  you subtract the price increase.

The term economic growth also includes medium- or long-term growth. It is also a trend growth that results if one disregards the temporary seasonal and cyclical fluctuations in economic development. Economic growth in this sense is the subject of theoretical and empirical economic research. It is one of the main goals of economic policy action.