Mark Graph: Table 5 of the national accounts includes the implicit price deflators (IPD) for each term in the expenditure equation for GDP….the big deflationary item was exports….
So we get to the heart of the anomaly: largely because we exported a touch less in volume terms (in Q1 2012 compared with Q4 2011) but at significantly reduced prices, this contributed significantly to an outcome where real GDP grew significantly while nominal GDP stagnated.
via Understanding our price deflationary boom | Mark Graph.
Comment:~ So real GDP growth is not really real. The major difference between nominal GDP growth (1.2% annualized) and real GDP growth (a far more impressive 5.2% annualized) is a fall in the price of exports!