How To Calculate Growth Rate Of Nominal GDP?


2 Answers

Anonymous Profile
Anonymous answered
Growth rate in nominal GDP = [(Nominal GDP year2 - Nominal GDP year 1) / Nominal GDP year 1]  x 100
This will give % change in nominal GDP from year 1 to year 2.
John  Munos Profile
John Munos answered

First, convert nominal GDP into real GDP for each year. This would be done by dividing nominal GDP by the price index, and then multiplying by 100 (because the price index is computed using a base of 100) For year 1, this calculation would be ($9,500/170) x 100 = $5,588 (rounded) For year 2, this calculation would be ($10,000/175) x 100 = $5,714 (rounded) These would be the real GDP figures for each year. To find the rate of growth from year 1 to year 2: $5,714 / $5,588 = 1.023 (rounded). This means that real GDP in year 2 is 102.3% of year 1, for an increase of 2.3%. I suggest you Percentage calculator through this you get more results about How to calculate percentage .

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