Economic growth is the rise in the market value that is inflation-adjusted of goods and services produced in an economy over a period of time. Generally, it is calculated as the percent rate of rise in the real GDP (gross domestic product) mostly in per capita terms.
Growth, generally is measured in real terms, that is, in inflation-adjusted terms to net out the altering effect of price increases (inflation) on the produced goods’ price. Economic growth measurement uses national income accounting. Because economic growth is calculated as the yearly percentage change of the GDP, it entails all the benefits and disadvantages of that measure.