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How to Calculate Real GDP Growth Rate.
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How to Calculate Real GDP Growth Rate.

Rosemary Njeri

Real GDP Growth Rate is the rate at which a nation’s Gross Domestic product (GDP) changes or grows from one year to another.

Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.

Formula to calculate real GDP growth rate.

Real GDP Growth Rate.

Example:

Suppose the real GDP in 2013 was $50,000,000 and the real GDP for 2014 was $80,000,000. Calculate the real GDP growth.

Here, the initial real GDP is from 2013, which is the previous year and the final real GDP is from 2014 since its the next after 2013. Therefore;

Real GDP Growth Rate.

Thus, the growth rate is 60%.

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