What is the highest ever recorded GDP growth rate?

Calculating the Rate of Growth of Per Capita Real GDP?

• The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant increase in the nation's birth rate has raised the annual rate of population growth to 0.5 percent. Answer the following questions: a. What was the rate of growth of per capita real GDP before the increase in population growth? b. If the rate of growth of real GDP remains unchanged, what is the new rate of growth of per capita real GDP following the increase in the birthrate?

• Answer:

  a. the rate of growth of per capita real GDP before the increase in population growth was 0.3% - the same rate as that of real GDP growth because the nation's population was constant. b.If the rate of growth of real GDP remains unchanged, the new rate of growth of per capita real GDP following the increase in the birthrate is negative 0.2% (= 0.3%-0.2%). Note: If population is P, GDP is Y, Per capital GDP y is given by Y/ P. Let t denote time. So rate of growth of any variable X is given by (dX/dt)/X. Now if you know calculus in mathematics, you know that rate of growth of per capital GDP is equal to (dy/dt)/ y = [d(Y/P)/dt]/((Y/P) = (dY/dt)/Y - (dP/dt)P = rate of growth of real GDP minus the rate of growth of population.