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Formula for Real Annual GDP Growth

The real annual growth rate of Gross Domestic Product (GDP) is calculated as the percentage change in real GDP from one year to the next. The general formula for the growth rate in year tt is: Real annual GDP growtht=GDPtGDPt1GDPt1×100\text{Real annual GDP growth}_t = \frac{\text{GDP}_t - \text{GDP}_{t-1}}{\text{GDP}_{t-1}} \times 100 For example, the growth rate in 2023 is found by comparing the real GDP of 2023 and 2022: Real annual GDP growth in 2023=GDP2023GDP2022GDP2022×100\text{Real annual GDP growth in 2023} = \frac{\text{GDP}_{2023} - \text{GDP}_{2022}}{\text{GDP}_{2022}} \times 100

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Updated 2025-10-04

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