What is the difference between current and constant data?
The term “nominal” and “current” mean the same. Data reported in current prices for each year are in the value of the currency for that particular year. Other series in WDI Online show data in “constant” or “real” terms. Constant series show the data for each year in the value of a particular base year, usually the year 2000. Current series are influenced by the effect of inflation. Constant series are used to measure the true growth of a series. For example (using year one as the base year), suppose nominal GDP rises from 100 billion to 110 billion, and inflation is about 4%. In real prices, the second year GDP would be approximately 106 billion, reflecting its true growth of 6%. Except for rare instances of deflation, a country’s current price series on a local currency basis will be higher than its constant price series in the years succeeding the constant price base year. However, this relationship does not hold when the data are converted to a common currency such as US dollars. M
