How to calculate annualized GDP growth rate?

Calculating the annual GDP growth rate can be complicated in the beginning, but it does not have to be. GDP stands for Gross Domestic Product.

• First thing that you need to remember is to find the growth rate in real GDP on a quarterly basis.

• You need to look at this formula g(annual) = (1+g quarterly) 4 – 1.

• The annual rate is going to be growth rate over a year.

• Once you have already done the different steps, you will be able to compute the GDP properly.

Some people will take some time before they actually get how the process can be done, but as long as you know what to do, it will not be too complicated.

GDP stands for Gross Domestic Profit. It measures and indicates how fast or slowly the economy is growing or shrinking. Calculating anything can be a chore, especially for people who are not good at math, but with these simple steps, you can calculate the annualized GDP growth rate.
• First, determine the time period you want to calculate.
• If the value of GDP rises from one year to the next, the formula will come to a positive result.
• If the value is dropping, it comes to a negative outcome.
• Second, accumulate information from reputable government resources.
• In the United States, the known source for GDP information is the Bureau of Economic Analysis.
• Third, find the GDP for two consecutive years.
• If the GDP is conducted quarterly, add the four quarters for the year to find GDP.
• Add the quarters together to arrive at the annual GDP information for the United States.
• Next, use the formula for growth rate by interpreting your result as a percentage.
• Finally, you have to convert the decimal number to a percentage by multiplying by 100 percent.