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

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.