Calculate Gdp Growth Rate

GDP Growth Rate Calculator

The Gross Domestic Product (GDP) growth rate is a crucial indicator of a country's economic health. It measures the percentage change in a country's economic output (GDP) over a specific period, typically a quarter or a year. A positive growth rate signifies an expanding economy, while a negative rate indicates a contraction.

Understanding GDP Growth Rate

The GDP growth rate is calculated using a straightforward formula:

GDP Growth Rate = ((Current Period GDP - Previous Period GDP) / Previous Period GDP) * 100

For example, if a country's GDP was $1.9 trillion in the previous year and rose to $2 trillion in the current year, the calculation would be:

((2,000,000,000,000 - 1,900,000,000,000) / 1,900,000,000,000) * 100 = 5.26%

This indicates a healthy economic expansion. A negative growth rate, often referred to as a recession, suggests that the economy is shrinking. This metric is vital for policymakers, businesses, and investors to make informed decisions.

function calculateGdpGrowth() { var currentGdpInput = document.getElementById("currentGdp"); var previousGdpInput = document.getElementById("previousGdp"); var resultDiv = document.getElementById("result"); var currentGdp = parseFloat(currentGdpInput.value); var previousGdp = parseFloat(previousGdpInput.value); if (isNaN(currentGdp) || isNaN(previousGdp)) { resultDiv.innerHTML = "Please enter valid numbers for both GDP periods."; return; } if (previousGdp === 0) { resultDiv.innerHTML = "Previous Period GDP cannot be zero."; return; } var gdpGrowth = ((currentGdp – previousGdp) / previousGdp) * 100; var growthPercentage = gdpGrowth.toFixed(2) + "%"; resultDiv.innerHTML = "GDP Growth Rate: " + growthPercentage + ""; }