GDP Growth Rate Calculator
Definition – 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.
Formula – How to calculate GDP growth rate
GDP Growth Rate = ((Current Year’s GDP – Last Year’s GDP) ÷ Last Year’s GDP) x 100
If a country’s current year GDP is 1.2 billion, and their last year’s GDP is 1 billion, then:
GDP Growth Rate = (1.2 – 1) ÷ 1 = 0.2 ÷ 1 = 0.20, or 20%
Therefore, this country’s GDP growth rate is 20%.
Sources and more resources
- Wikipedia – List of countries by GDP growth rate – A list of countries sorted by their most recent GDP growth rate.
- World Bank – GDP Growth (annual %) – The World Bank’s statistics on GDP growth by country.
- IMF – Real GDP Growth -The IMF’s statistics on GDP growth by country.
- The University of Minnesota – Principles of Macroeconomics – Growth of Real GDP and Business Cycles – An overview of GDP growth and how it relates to the business cycle.
- Eurostat – Beginners:GDP – Comparing GDP: growth rate and per capita – A simple explanation of GDP and growth rates.