how to calculate gdp growth rate?

Answer 1

The formula for calculating GDP growth rate is:

(GDP in current year - GDP in previous year) / GDP in previous year x 100%

Here's an example:

Suppose the GDP of a country was $1 trillion in 2020 and it increased to $1.2 trillion in 2021. To calculate the GDP growth rate for 2021, we can use the formula above:

($1.2 trillion - $1 trillion) / $1 trillion x 100% = 20%

Therefore, the GDP growth rate for 2021 is 20%. This means that the country's economy grew by 20% from 2020 to 2021.

Answer 2

Gross Domestic Product (GDP) growth rate measures the percentage change in real GDP from one period to another, usually a quarter or a year. Here are the steps to calculate GDP growth rate:

Determine the period for which you want to calculate GDP growth rate. For example, you might want to calculate the quarterly or yearly GDP growth rate.

Obtain the GDP for the initial period and the final period. For example, if you are calculating quarterly GDP growth rate, you would need the GDP for the first quarter and the second quarter.

Calculate the difference between the final GDP and the initial GDP: Final GDP - Initial GDP.

Divide the difference by the initial GDP: (Final GDP - Initial GDP) / Initial GDP.

Multiply the result by 100 to get the percentage growth rate: ((Final GDP - Initial GDP) / Initial GDP) x 100.

For example, if the initial GDP for a quarter is $500 billion and the final GDP for the next quarter is $550 billion, then the GDP growth rate for that quarter would be:

GDP growth rate = ((550 - 500) / 500) x 100 = 10%.

Note that it is important to use real GDP instead of nominal GDP when calculating GDP growth rate, as real GDP takes inflation into account.