What is the relationship between economic growth and GDP?

Economic growth is fundamentally linked to the expansion of a country's economy, which is often measured by the increase in real GDP (Gross Domestic Product). Real GDP represents the total value of all goods and services produced in an economy, adjusted for inflation, and serves as a key indicator of economic performance. When there is economic growth, it typically means that the economy is producing more output, leading to an increase in real GDP.

This relationship is crucial because a rising GDP often correlates with improved living standards, higher employment rates, and increased productivity. As businesses invest and consumers spend, economic activities stimulate growth, contributing further to the upward trend in GDP. Therefore, an increase in real GDP is a direct reflection of economic growth, making the correlation strong and clear.