In 2001 GDP was 9215 bill. In 2002 it was 9440 bill. What was growth rate of real GDP from 2001 to 2002?

Question

In 2001 GDP was 9215 bill. In 2002 it was 9440 bill. What was growth rate of real GDP from 2001 to 2002?

Answer 1

If these numbers are real GDP then:

Real GDP growth=9440/9215=1.0244=+2.44%

If you have given nominal GDP values then you should provide also Inflation rate.

Answer 2

This is how growth rate is worked out:

  {GDP(2002) - GDP(2001)} / GDP(2001)

= (9440 - 9215) bill./ 9215 bill. = 0.024416712 which is equal to 2.44 % approx.

But this is GDP growth trate. If the figures are for Real GDP then this is the real GDP growth rate. IF the figures you have given are for nominal GDP, then this is the nominal gdp growth rate, In that case you need to also know the percentage change in the GDP Deflator (this is a kind of inflation rate). Then you have to deduct this GDP Deflator growth rate from the nominal GDP growth rate to get the real GDPgrowth rate.