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GDP given in constant prices and refers to the volume level of GDP. Constant price estimates of GDP are obtained by expressing values of all goods and services produced in a given year, expressed in terms of a base period, OECD.

This indicator provides a measure of the growth of the economy and the extent of total economic output. It gives an indication of how fast, by how much, and in which sectors the economy is growing. Real GDP is a macroeconomic assessment that measures the value of goods and services produced by an economic entity in a specific period, adjusted for inflation. This entails the preparation of quarterly and annual GDP and other National Accounts Aggregates.

Statistical Institute of Belize (SIB)

International Monetary Fund (IMF)

Organisation for Economic Co-operation and Development (OECD)

Statistical Institute of Belize (SIB) - Jefte Ochaeta

Quarterly and Annual

Percentage (%)

Real GDP accounts for changes in price level and provides a more accurate figure of economic growth than nominal GDP. Nominal GDP includes inflation and is normally higher than GDP, but this is not indicative that the economy has actually grown. The base year used is 2000 but is expected to change to 2014.

Gross Domestic Product (GDP): It is the main measure of national output, representing the total value of all final goods and services within the System of National Accounts (SNA) production boundary produced in a particular economy (that is, the dollar value of all goods and services within the SNA production boundary produced within a country’s borders in a given year). According to the SNA, “GDP is the sum of gross value added of all resident producer units plus that part (possibly the total) of taxes on products, less subsidies on products, that is not included in the valuation of output … GDP is also equal to the sum of the final uses of goods and services (all uses except intermediate consumption) measured at purchasers’ prices, less the value of imports of goods and services GDP is also equal to the sum of primary incomes distributed by resident producer units.”

Real Gross Domestic Product (GDP): Real GDP refers to GDP calculated at constant prices, that is, the volume level of GDP, excluding the effect of inflation and favouring comparisons of quantities beyond price changes. Constant price estimates of GDP are calculated by expressing values in terms of a base period. In theory, the price and quantity components of a value are identified and the price in the base period is substituted for that in the current period.

No disaggregation

Calculation for Real GDP can be done in two basic ways: i. Production approach: involves summing up the value added of all the respective industries. This includes determining production and subtracting cost of production adjusted for taxes and subsidies. ii. Expenditure approach: The sum of the values for consumption, government expenditure and the net exports of a country. To get the Real GDP this value is divided by (1+inflation since the base year). iii. Income Approach: The sum of total national income, sales tax, depreciation and net foreign income. To get the Real GDP this value is divided by (1+inflation since the base year.

Government uses Real GDP as a comparison tool to analyse the economy’s purchasing power and growth over time.

Real GDP per capita growth does not account for sustainable development, that is, it does not account for social and environmental costs of production. Therefore, it does not measure overall well-being. Real GDP per capita does not factor income distribution. Two or more countries may have similar GDP per capita, but one country may have a higher percentage of poverty due to the inequalities of income distribution within that country.

SIB compiles and publishes real GDP on a quarterly basis. The concepts and definitions adhered to in the compilation of GDP is prescribed within the United Nation’s Systems of National Accounts, version 1993.