Economic Growth Calculator

Formula

The formula to calculate the Economic Growth is:

\[ G = \frac{\text{GDP}_2 - \text{GDP}_1}{\text{GDP}_1} \times 100 \]

Where:

$G$ is the percentage of economic growth
$\text{GDP}_1$ is the initial GDP ($)
$\text{GDP}_2$ is the final or current GDP ($)

What is Economic Growth?

Economic growth is defined as the increase or decrease in the total value of goods and services that a country produces over time. Economic growth that is caused by an increase in population, which then leads to more goods being produced, is known as extensive growth. Economic growth that occurs when the population is constant, which leads to an increase in GDP per capita, is known as intensive growth.

Example Calculation

Let's assume the following values:

Initial GDP (GDP1) = $1,000,000
Final GDP (GDP2) = $1,200,000

Using the formula:

\[ G = \frac{1,200,000 - 1,000,000}{1,000,000} \times 100 \approx 20.00 \% \]

The Economic Growth is approximately 20.00%.