Economics
Basic

GDP Growth Rate

The percentage change in real output between two periods.

Formula

g=GDP1−GDP0GDP0×100%g = \dfrac{GDP_1 - GDP_0}{GDP_0}\times 100\%

Variables

gGrowth rate
GDP_1Current GDP
GDP_0Prior GDP

Example

($640B − $610B)/$610B ≈ 4.9%

Did You Know?

Two consecutive quarters of negative GDP growth is the common rule-of-thumb definition of a recession.

gdpgrowthmacro