The table below provides the GDP (in R 1 000 000) in real terms for each trimester during 2008 and 2009.
2008
I 66 593
II 67 003
III 66 838
2009 I 65 232
II 66 694
III 68 381
Determine the growth rate in the GDP during the first trimester of 2009 by using the method of current period on the:
19.1 Preceding period.
19.2 Preceding period at annual rates.
19.3 Same period of the preceding year.
To calculate the growth rate in the GDP during the first trimester of 2009 using the methods mentioned:
1. Preceding period method:
Growth rate = ((GDP in the first trimester of 2009 - GDP in the first trimester of 2008) / GDP in the first trimester of 2008) x 100
Growth rate = ((65,232 - 66,593) / 66,593) x 100
Growth rate = (-1,361 / 66,593) x 100
Growth rate = -0.0204 x 100
Growth rate = -2.04%
2. Preceding period at annual rates method:
Growth rate at annual rates = (GDP in the first trimester of 2009 / GDP in the first trimester of 2008) - 1
Growth rate at annual rates = (65,232 / 66,593) - 1
Growth rate at annual rates = 0.9795 - 1
Growth rate at annual rates = -0.0205
Growth rate at annual rates = -2.05%
3. Same period of the preceding year method:
Growth rate = ((GDP in the third trimester of 2008 - GDP in the first trimester of 2008) / GDP in the first trimester of 2008) x 100
Growth rate = ((66,838 - 66,593) / 66,593) x 100
Growth rate = (245 / 66,593) x 100
Growth rate = 0.0037 x 100
Growth rate = 0.37%
Therefore, the growth rate in the GDP during the first trimester of 2009 is as follows:
- 2.04% using the preceding period method
- 2.05% using the preceding period at annual rates method
- 0.37% using the same period of the preceding year method.