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Glossary - Definition of Term

Term
GDP at constant prices
Definition Gross domestic product (GDP) at constant prices refers to the volume level of GDP. Constant price estimates of GDP are obtained by expressing values in terms of a base period.
In theory, the price and quantity components of a value are identified and the price in the base period is substituted for that in the current period. Two main methods are adopted in practice.
The first, referred to as "quantity revaluation", is based on a methodology consistent with the above theory (i.e., by multiplying the current period quantity by the base period price).
The second, commonly referred to as "price deflation", involves dividing price indexes into the observed values to obtain the volume estimate. The price indexes used are built up from the prices of the major items contributing to each value.
 
It is acknowledged that this glossary uses descriptions of the OECD glossary of statistical terms, the Glossary of the System of National Accounts 1993 and the UN classifications registry.
 

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