GDP Growth Rate Calculator
If you want to determine the gross domestic product's variation and occurrence over a certain period, you can use our GDP growth rate calculator.
In finance, The GDP (Gross Domestic Product) growth rate calculates the economy growing ratio. It resembles the one-year/quarter GDP of a country with the past year/quarter to estimate a growing economy rate. Moreover, For a more supportive comparison between the two GPDs, it is more convenient to calculate the GDP growth rate in percentage (%).
According to Economists, the best GDP Growth rate is 2-3%. Countries maintaining their growth rate between the above figures have less unemployment and are counted as developed countries globally.
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Formula of GDP Growth Rate Calculator
To better find the growth rate of a GDP, you can use our calculator, or you can calculate it manually by using the formula listed below:
GDP Growth Rate = ((GDP∈currentperiod − GDP∈thepreviousperiod) / GDP∈thepreviousperiod) × 100
Note:
To calculate the present value interest factor of an annuity, you can use our PVIFA Calculator.
Example
For a more precise and clear understanding, let us have an example below.
Suppose a European country had a GPD of 17,304,984 million pounds in 2018; in 2017, its GPD was 16,920,328 million pounds; now calculate the growth rate of the GPD a country has earned over a specific period.
Given data
GDP in current period = 17,304,984 million pounds
GDP in the previous period = 16,920,328 million pounds
To Find
GDP growth rate = ?
Solution
To solve the above problem, we will use the formula listed above.
GDP Growth Rate = ((GDP∈currentperiod − GDP∈thepreviousperiod) / GDP∈thepreviousperiod) × 100
Putting values in the formula:
GDP growth = 2.27%
How to use the GDP Growth Rate Calculator?
The steps to use the GDP growth rate calculator are as follows:
Step 1: Enter the value of GDP in the current period in the first required input.
Step 2: Enter the value of GDP in the previous period in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
Calculator use
To find out the growth rate instantly, you can use our GDP growth rate calculator. Just enter the required values and get the most prescribed answer on the screen.
