nimelliskasvusta

Nimelliskasvu refers to the increase in the nominal value of an asset or an economic indicator over time. It is measured in current prices and does not account for inflation. This means that if an asset's value increases by 5% and inflation is 2%, its nominal growth is 5%, but its real growth is only 3%.

Nominal growth is a straightforward calculation, often used for reporting purposes where the immediate monetary increase is the primary focus. For example, a company's revenue might grow by 10% in a given year. This 10% is the nominal growth. Similarly, a country's Gross Domestic Product (GDP) can be reported with nominal growth figures, indicating the total value of goods and services produced at current market prices.

However, nominal growth can be misleading if not considered alongside inflation. A high nominal growth rate might not translate into a significant improvement in purchasing power if inflation erodes the value of money. Investors and economists often prefer to look at real growth, which adjusts for inflation, to get a more accurate picture of economic performance and asset appreciation. Understanding the distinction between nominal and real growth is crucial for making informed financial and economic decisions.