How To Calculate Growth Rate Of Real Gdp Per Capita

For example if the gdp per capita of a country in 2018 is 20 000 and in 2019 it is 22 000 the equation would be 22000 20000 20000 100 10 growth rate. To calculate the growth rate of real gdp per person real gdp per capita you would take the real gdp per capita for later year real gdp per capita for an earlier year real gdp per capita for an earlier year 100.

Solved The Table Below Shows Real Gdp Population And Re

For example the gdp for the united states in 2014 was 16 768 trillion.

How to calculate growth rate of real gdp per capita. Rate of growth of per capita gdp is defined as the difference between the rate of growth of gdp and the rate of growth of population as per capita gdp gdp population. The calculation of real gdp per capita will be done by using the below steps. It s the most populous country in the world with 1 43 billion people.

When an economy s growth rate is positive the economy s output is increasing and it is said to be in recovery or in economic boom. Step 2 find out the deflator which shall be provided by the government of that economy. To calculate gdp per capita divide the nation s gross domestic product by its population.

However it is important to note that usually real gdp not nominal gdp is used for the calculation of gdp per capita as it curbs the effects of inflation and aids comparison across the years. But its gdp per capita was only 19 098 because it has more than four times the number of people as the united states. Gdp growth rate or simply growth rate of an economy is the percentage by which the real gdp of an economy increases in a period.

Here s the formula to calculate real gdp per capita r if you only know nominal gdp n and the deflator d. N d c real gdp per capita the best way to calculate real gdp per capita for the united states is to use the real gdp estimates already published by the bureau of economic analysis. If the growth rate of an economy is g its output doubles in 70 g periods.

Gdp is typically figured for periods such as one year or one quarter. The european union is the world s second most prosperous economy at 22 7 trillion in 2019. The formula for gdp per capita is quite simple and it can be derived by dividing the real gdp of a country by its population.

Then just divide it by the population. Step 1 one needs to first calculate nominal gdp either by using income method expenditure method or production method. So the growth rate of per capita gdp 1 5 2 5 1 0.

Gdp Per Capita Formula Calculator Examples With Excel Template