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What is GDP growth rate?

The gross domestic product (GDP) growth rate measures how rapidly the economy is growing or shrinking. It compares the most recent quarter of the country's economic output to the previous quarter. Economic output is measured by GDP. The current U.S. GDP growth rate is 2.9%.

What is economic growth rate?

An economic growth rate is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period. The economic growth rate is used to measure the comparative health of an economy over time. The numbers are usually compiled and reported quarterly and annually.

Why do we use growth rate of GDP per capita?

Growth rate of GDP per capita is a better measure of improvement in standard of life of an average person in the economy. You must be wondering why we use the rate of change in real GDP as a measure of an economy’s growth rate instead of the rate of change of nominal GDP.

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