Question

You have been given the following data on Pakistan GDP:

Nominal GDP GDP Deflator

Year in billions of rupees (Base Year = 2006)

2019 38,559 282

2015 27,443 245

Calculate the growth rate of nominal GDP between 2015 and 2019. (Hint: the average annual growth for variable X for N-years can be calculated as .) (0.5 Marks)

Calculate the growth rate of GDP deflator between 2015 and 2019. (0.5 Marks)

Calculate real GDP in 2015 measured in 2006 prices. (0.5 Marks)

Calculate real GDP in 2019 measured in 2006 prices. (0.5 Marks)

Calculate growth rate of real GDP between 2015 and 2019. (0.5 Marks)

Answer 1

=> growth rate in nominal gdp between 2015 and 2019 = 38559-27443 / 27443 *100 = 11116/27443*100 = 0.4050*100 = 40.50%

​​​​​​=> the growth rate of GDP deflator between 2015 and 2019 = 282-245 / 245 *100 = 37/245*100 = 15.10%

=> real GDP in 2015 measured in 2006 prices = Nominal gdp / gdp defletor *100 = 27443/245*100 = 11201

=> real GDP in 2019 measured in 2006 prices = 38559/282*100 = 13673

=> growth rate of real GDP between 2015 and 2019 = 13673-11201/11201*100 = 2472/11201*100 = 22.07%