Assuming the 2016 per capita GDP growth rate is equal to the average growth rate

Question

Assuming the 2016 per capita GDP growth rate is equal to the average growth rate (2000–2015) provided in the table, estimate 2016 per capita GDP for each of the following countries:

Instructions: Enter your responses rounded to the nearest dollar.

a. China: $

b. Canada: $

c. Haiti: $

Average Growth Rate (2000–2015) of GDP Population Per Capita GDP High-income countries United States 1.6 0.9 0.7 Canada 1.9 1 0.9 Japan 0.7 0 0.7 France 1.1 0.6 0.5 Low-income countries China 10.3 0.5 9.8 Ethiopia 9.6 2.7 6.9 India 7.5 1.5 6 Burundi 1 1.6 -0.6 Haiti 1.2 1.5 -0.3 Libya -0.5 1.1 -1.6 Zimbabwe -1.9 1.5 -3.4

Explanation / Answer

(a) CHINA
GDP per capita in 2015 = $7,930

Growth rate of GDP per capita = 9.8% or 0.098

Calculate the change in GDP per capita -

Change = GDP per capita in 2015 * Growth rate of GDP per capita

Change = $7,930 * 0.098 = $777.14

Calculate the GDP per capita in 2016 -

GDP per capita in 2016 = GDP per capita in 2015 + Change in GDP per capita

GDP per capita in 2016 = $7,930 + $777.14 = $8,707.14 or $8,707

Thus,

The 2016 per capita GDP in China is $8,707.

(b) CANADA
GDP per capita in 2015 = $47,540

Growth rate of GDP per capita = 0.9% or 0.009

Calculate the change in GDP per capita -

Change = GDP per capita in 2015 * Growth rate of GDP per capita

Change = $47,540 * 0.009 = $427.86

Calculate the GDP per capita in 2016 -

GDP per capita in 2016 = GDP per capita in 2015 + Change in GDP per capita

GDP per capita in 2016 = $47,540 + $427.86 = $47,967.86 or $47,968

Thus,

The 2016 per capita GDP in Canada is $47,968.

(c)HAITI
GDP per capita in 2015 = $810

Growth rate of GDP per capita = -0.3% or -0.003

Calculate the change in GDP per capita -

Change = GDP per capita in 2015 * Growth rate of GDP per capita

Change = $810 * (-0.003) = -$2.43

Calculate the GDP per capita in 2016 -

GDP per capita in 2016 = GDP per capita in 2015 + Change in GDP per capita

GDP per capita in 2016 = $810 + -2.43 = $807.57 or $808

Thus,

The 2016 per capita GDP in Haiti is $808.

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