GDP Per Capita Growth Rate Calculator
Understanding GDP Per Capita Growth Rate
The GDP Per Capita Growth Rate is a crucial economic indicator that measures the
percentage change in the Gross Domestic Product (GDP) per person in a country or
region over a specific period. GDP per capita itself is calculated by dividing a
country's total GDP by its total population. It provides a snapshot of the average
economic output per individual, serving as a proxy for the standard of living and
economic prosperity.
Calculating the growth rate of GDP per capita helps economists, policymakers, and
investors understand the pace at which the average economic well-being is improving
or declining. A positive growth rate indicates that the economy is expanding at a
faster pace than the population, leading to an increase in the average income and
potential for higher living standards. Conversely, a negative growth rate suggests
that the population is growing faster than the economy, or the economy is shrinking,
which can lead to a decrease in average income and potential economic hardship.
This calculator helps you determine the annualized GDP per capita growth rate
given an initial and final GDP per capita value over a specified number of years.
It uses the compound annual growth rate (CAGR) formula adapted for GDP per capita.
Formula Used:
𝓆𝓆𝓆𝓆𝓆 = (($𝓆𝓆𝓆𝓆𝓆_{final} / $𝓆𝓆𝓆𝓆𝓆_{initial}) ^ (1 / $𝓆_{years})) – 1
Where:
- 𝓆𝓆𝓆𝓆𝓆 is the GDP Per Capita Growth Rate
- $𝓆𝓆𝓆𝓆𝓆_{final} is the final GDP Per Capita
- $𝓆𝓆𝓆𝓆𝓆_{initial} is the initial GDP Per Capita
- $𝓆_{years} is the number of years over which the growth occurred
function calculateGdpPerCapitaGrowth() {
var gdpPerCapitaInitial = parseFloat(document.getElementById("gdpPerCapitaInitial").value);
var gdpPerCapitaFinal = parseFloat(document.getElementById("gdpPerCapitaFinal").value);
var numberOfYears = parseFloat(document.getElementById("numberOfYears").value);
var resultDiv = document.getElementById("gdpGrowthResult");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(gdpPerCapitaInitial) || isNaN(gdpPerCapitaFinal) || isNaN(numberOfYears)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (gdpPerCapitaInitial <= 0) {
resultDiv.innerHTML = "Initial GDP Per Capita must be a positive number.";
return;
}
if (numberOfYears <= 0) {
resultDiv.innerHTML = "Number of Years must be a positive number.";
return;
}
// Calculate GDP Per Capita Growth Rate (CAGR)
var growthRate = Math.pow((gdpPerCapitaFinal / gdpPerCapitaInitial), (1 / numberOfYears)) – 1;
// Display the result
resultDiv.innerHTML = "
Result:
" +
"The annualized GDP Per Capita Growth Rate is: " +
(growthRate * 100).toFixed(2) + "%";
}
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