Question

GDP from each year:

	Year	GDP
1.	2018	10569705.30
2.	2019	11526332.80
3.	2020	12401728.50
4.	2021	13589825.70
5.	2022	14838311.50
6.	2023	15833943.40

a) Calculate Economic Growth from 2018 to 2023. When is the highest growth?

b) Calculate the Constant GDP of 2018, 2019, 2021, 2022, 2023 based on 2020 price.

Answer 1

a) The growth rate can be calculated by following formula
((Final value / Initial Value) -1) * 100

The growth rate in 2019

((11526332.80 / 10569702.30) - 1) * 100
= 9.0507%

In 2020,
((12401728.5 / 11526332.8) - 1) * 100
= 7.5947%

We can create a table for that

Year	GDP	Growth Rate %
2018	10569705.3
2019	11526332.8	9.0507
2020	12401728.5	7.5947
2021	13589825.7	9.5801
2022	14838311.5	9.1869
2023	15833943.4	6.7099

The growth rate was highest in 2021 and it was 9.58%.

b) The year 2020 has to assumed as the base year
Deflator = (Current Year * 100) / Base Year

2018 Deflator
(10569705.3 * 100) / 12401728.5 = 85.2276

10569705.3 * 85.2276 = 9008314.46

Again, we could create a table

Year	GDP	Growth Rate %	Deflator	GDP - 2020
2018	10569705.3		85.2277	9008314.46
2019	11526332.8	9.0507	92.9413	10712728.30
2020	12401728.5	7.5947	100.0000	12401728.50
2021	13589825.7	9.5801	109.5801	14891743.72
2022	14838311.5	9.1869	119.6471	17753612.99
2023	15833943.4	6.7099	127.6753	20216033.89