Nominal GDP reflects Gross Domestic Product in today's prices.
As opposed to Real GDP, which controls the growth figure for the affects of inflation, Nominal GDP may increase due to either increased output in an economy, or to increased prices in that economy.
Because inflation may dilute the usefulness of Nominal GDP as a gauge for economic production, Real GDP often serves as the headline figure for a country's growth.
Analysts take Nominal GDP and divide it by the
GDP Deflator, thereby expressing today's growth figures in a more consistent base year's. This makes year to year comparisons more relevant.
If today's Nominal GDP is $103B, and the GDP Deflator is 3%, the Real GDP is $103B/1.03, or $100Billion.
Generally any 'nominal' figure has not been controlled for inflation or other variables that may make the figure more accurate.
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