Question #22897

the rate of growth of real gdp

Expert's answer

The growth rate of real GDP is the percentage change in real GDP from one year to

the next.

**Growth rate of GDP = [GDP(2005) - GDP(2004)]/ GDP(2004) × 100**

For purposes of evaluating how economic growth can feed into economic development it is often helpful to focus on the growth rate of GDP per

capita—that is, output per person—rather than simply on overall output.

Mathematically, GDP per capita is expressed as:

**GDP per capita = GDP / Population**

The growth rates of GDP, population, and GDP per capita are related in the following way:

**Growth Rate of GDP = Growth Rate of Population + Growth Rate of GDP per capita**

or:

** Growth Rate of GDP per capita = Growth Rate of GDP – Growth Rate of Population**

the next.

For purposes of evaluating how economic growth can feed into economic development it is often helpful to focus on the growth rate of GDP per

capita—that is, output per person—rather than simply on overall output.

Mathematically, GDP per capita is expressed as:

The growth rates of GDP, population, and GDP per capita are related in the following way:

or:

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