What does the GDP real growth rate mean?

The GDP real growth rate measures the increase in the value of all goods and services produced in an economy, adjusted for inflation, over a specific period, typically a year or a quarter. This rate reflects the actual growth in economic output, providing a clearer picture of economic performance than nominal GDP, which does not account for price changes. A positive real growth rate indicates a growing economy, while a negative rate suggests contraction. It is a key indicator used by policymakers and analysts to assess economic health and make decisions.