how do we calculate %age growth? Is it :- Current yr growth/Previous yr growth multiplied by 100????

Answer 1

Pat forgot to add multiply by 100 to get a percentage, but otherwise is correct.

Two different formulae that give the same answer are:

Growth = ((Current year figure/past year figure) - 1) * 100

and

Growth = (Current year figure - past year figure)/past year figure *100

If you can remember your high school algebra, it is reasonably easy to prove that these two formulae are identical.

There is also another more complicated formulae using logs that gives an approximate growth rate so long as the growth rate is small. But why use complicated functions like logs to get an answer that is only approximately correct when you can derive the exact answer using one of the formulae above?

Answer 2

the correct formula is

(Current year figure - previous year figure) divided by previous year multiplied by 100

Answer 3

growth = ("current year GDP"-"previous year GDP")/"Previous year GDP"

This is the simplest way, I know of.

Answer 4

i think you have to use a formula w/ logs in it