How the BEA Calculates Real GDP: Chain-Weighting and Base Years Explained
Real GDP is the federal government’s primary measure of U.S. economic output, but it is not a simple sum of goods and services. The Bureau of Economic Analysis builds real GDP using chain-type indexes and chained-dollar measures, which remove the effects of price changes and allow meaningful comparisons over time. Rebasing changes the reference year for real estimates, but it does not alter the percentage changes that analysts use to track growth.
