Economic Growth

Economic Growth is the increase in the amount of goods and services produced by an economy over a period of time. This is measured by Gross Domestic Product (GDP).

For example, if a country has a GDP of $1000 billion in 2019 and $1020 billion in 2020, it has experienced economic growth of 2%.

The formula for economic growth is usually calculated as the percentage change in Real GDP from one year to the next.

Growth rate = (Real GDP current year - Real GDP previous year)/Real GDP previous year X 100