GDP Growth Rate – Calculator | Formula | Explanation

LAST UPDATE: May 21st, 2018

What is GDP growth rate?

The GDP growth rate is measured as the difference in GDP between two years. It is listed as a percentage.

The growth rate can be listed for real or nominal GDP. GDP Growth rate is a percentage increase between two numbers. If real GDP data is used, it will show the growth rate in real terms. If nominal GDP numbers data is used, it will show the growth rate in nominal terms.

Formulas

$\text{GDP Growth Rate}=\frac{\text{Current Year's GDP} - \text{Last Year's GDP}}{\text{Last Year's GDP}}x100$

Examples

If a country’s current year GDP is 5.62 billion, and their last year’s GDP is 5 billion, then:

GDP Growth Rate = $\frac{5,620,000,000 - 5,000,000,000}{5,000,000,000} x 100$

GDP Growth Rate = $\frac{620,000,000}{5,000,000,000} x 100$

GDP Growth Rate = $.124 x 100$

GDP Growth Rate = 12.4