Page 16 - Brown and White Doodle Marketing Proposal Report Cover A4 Document

3. HOW TO MEASURE ECONOMIC

GROWTH

THE FOLLOWING IS A FORMULA AS A WAY TO

MEASURE A COUNTRY'S ECONOMIC GROWTH:

GT = ((PBDT – PBDT-1) / PBDT-1)) X100%.

INFORMATION:

GT= ECONOMIC GROWTH RATE

PBDT= GDP VALUE FOR PERIOD T

PBDT-1= GDP VALUE OF THE PREVIOUS PERIOD

PROBLEMS EXAMPLE :

EXAMPLE OF CALCULATING ECONOMIC GROWTH

USING GDP AT CONSTANT PRICES:

IS KNOWN:

GDP AT CONSTANT PRICES IN 1967 = 695,544

GDP AT CONSTANT PRICES IN 1968 = 771,463

SO, ECONOMIC GROWTH IN 1968 WAS:

ECONOMIC GROWTH IN 1968 =( 771,463 – 695,544)/

695,544) X100 = 10.92%