GDP deflator
The GDP deflator is a price index of the gross domestic product (GDP), which is calculated as a so-called implicit price index as the quotient of nominal (in current prices) and real (price-adjusted) GDP:
In addition to the GDP deflator, deflators are also calculated for the components of GDP, for example for private consumption or export.
function
The GDP deflator is used in economics to measure the price level and inflation . In contrast to the consumer price index , for example , the GDP deflator not only shows changes in the price of goods in a selected shopping basket, but also changes in all prices in the economy. For this reason, it is often preferred by scientists, while the consumer price index has a stronger response in the media.
example
The nominal GDP of Germany was given by the Federal Statistical Office (StBA) in the “preliminary report 2003” for 2003 at € 2,129.20 billion. At 1995 prices, GDP in 1987 was € 70 billion. The GDP deflator is thus calculated as follows:
Usually this value is multiplied by 100: 107.1. For the base year (in the example 1995), the result is always a value of 100.0 (1 x 100), since the real and nominal GDP are the same in the base year.
With the introduction of the chain indices , the StBA is now proceeding differently. The time series for GDP in current prices are expressed as measurement numbers (currently 100 for the year 2000). With the help of the chain indices, GDP is also determined as a price-adjusted series of indicators (also 2000 = 100). The quotient of the measure for nominal GDP and the corresponding price-adjusted measure of GDP is then the implicit price index or the GDP deflator.
Individual evidence
- ↑ OECD: Understanding National Accounts , 2006, ISBN 92-64-02566-9 , page 20 ff.