Calculate Gdp Growth Rate Formula

GDP Growth Rate Calculator

This calculator helps you determine the percentage change in a country's Gross Domestic Product (GDP) over a specific period. GDP is the total monetary value of all the finished goods and services produced within a country's borders in a specific time period. GDP growth rate is a key indicator of a country's economic health and performance.

How to Calculate GDP Growth Rate

The formula to calculate the GDP growth rate is as follows:

GDP Growth Rate = [ (Current Period GDP – Previous Period GDP) / Previous Period GDP ] * 100

Where:

  • Current Period GDP: The total value of goods and services produced in the most recent period.
  • Previous Period GDP: The total value of goods and services produced in the preceding period.

A positive GDP growth rate indicates that the economy is expanding, while a negative rate suggests a contraction or recession.

Example Calculation:

Let's say a country's GDP in the last quarter was $19,500,000,000,000 and in the current quarter it is $20,000,000,000,000.

  1. Subtract the previous GDP from the current GDP: $20,000,000,000,000 – $19,500,000,000,000 = $500,000,000,000
  2. Divide the difference by the previous GDP: $500,000,000,000 / $19,500,000,000,000 ≈ 0.0256
  3. Multiply the result by 100 to express it as a percentage: 0.0256 * 100 = 2.56%

Therefore, the GDP growth rate for this country in this period is approximately 2.56%.

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