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Real Value of Gross Domestic Product and Terms of Trade: Results for 2015

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  • Wolfgang Nierhaus

Abstract

In addition to real gross domestic product, the German Official Statistics Office also calculates the real value of gross domestic product. Both key indicators differ with regard to their terms of trade effect. This article presents the results for the years 1992 to 2015. The real value of GDP increased by 2.8% on average last year, while real GDP, by contrast, grew by just 1.7%. The terms-of-trade-related purchasing power surplus of 1.1 percentage points, which was mainly due to the sharp drop in domestic oil prices, pushed up real income via higher corporate profits and lower prices in 2015, all other things being equal. The economic dynamic in Germany, measured by the growth rate in the real value of gross domestic product, was far higher than suggested by the rate of change in price-adjusted gross domestic product.

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  • Wolfgang Nierhaus, 2016. "Real Value of Gross Domestic Product and Terms of Trade: Results for 2015," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(04), pages 60-64, February.
    • Handle: RePEc:ces:ifosdt:v:69:y:2016:i:04:p:60-64
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    1. Mick Silver & Khashayar Mahdavy, 1989. "The Measurement of a Nation's Terms of Trade Effect and Real National Disposable Income Within a National Accounting Framework," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 152(1), pages 87-107, January.
    2. Wolfgang Nierhaus, 2015. "Terms of Trade und Trading Gain," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(09), pages 16-20, May.
    3. Kohli, Ulrich, 2004. "Real GDP, real domestic income, and terms-of-trade changes," Journal of International Economics, Elsevier, vol. 62(1), pages 83-106, January.
    4. Ulrich Kohli, 2004. "An Implicit Törnqvist Index of Real GDP," Journal of Productivity Analysis, Springer, vol. 21(3), pages 337-353, May.
    5. Wolfgang Nierhaus, 2000. "Real income in the new European System of Accounts," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(04), pages 07-13, February.
    6. Wolfgang Nierhaus, 2006. "On aggregate price developments," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(03), pages 28-31, February.
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    Cited by:

    1. Burda Michael C. & Seele Stefanie, 2017. "Das deutsche Arbeitsmarktwunder: Eine Bilanz," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 18(3), pages 179-204, October.

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