Nimelliskasvu

Nimelliskasvu refers to the nominal growth of something, often in an economic context, meaning the increase in monetary value without accounting for inflation. It is the visible increase in revenue, wages, or other financial figures that can be misleading if inflation is not considered. For example, if a company's revenue grows by 5% in a year, but inflation is also 5%, the company has experienced no real growth in terms of purchasing power.

The opposite of nominal growth is real growth, which adjusts for changes in the general price level. Real growth provides a more accurate picture of how the actual quantity or value of goods and services has changed. Economists and policymakers use real growth figures to understand economic performance, as it reflects actual improvements in living standards or production rather than just a rise in prices. When discussing economic indicators like GDP, unemployment, or wages, it is crucial to distinguish between nominal and real figures to avoid misinterpretations about the economy's health. A significant difference between nominal and real growth rates indicates substantial inflation or deflation.