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The economic growth rate is expressed in percentage that shows a rate of change in the country's Gross Domestic Product (GDP). (File Photo)
The economic growth rate is expressed in percentage that shows a rate of change in the country's Gross Domestic Product (GDP). It is the rate at which a nation's GDP changes in a particular year. The real economic growth rate measures the inflation of an economy.
It is used by the policymakers while deciding the fiscal policies, and it is also used to compare one economy with another, and to compare the current economic growth rate to the previous periods.
It is calculated as-
Real GDP = GDP/ 1 (Inflation since base year)