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USCanadaIrelandIndonesia and Ethiopia only. 7. Growth rates of per capita GDP: C

ID: 1134441 • Letter: U

Question

USCanadaIrelandIndonesia and Ethiopia only. 7. Growth rates of per capita GDP: Compute the average annual growth rate of per capita GDP in each of the cases below. The levels are provided for 1980 and 2014, measured in constant 2011 dollars.11 1980 2014 United States Canada France Italy Germany Japan Ireland Mexico Brazil Indonesia Kenya China India Ethiopia 29,288 24,716 22,557 United Kingdom 20,044 19,912 19,617 19,147 12,845 11,954 5,297 2,249 2,049 1,578 1,169 690 51,958 43,376 37,360 38,083 34,876 45,320 35,574 52,186 15,521 17,459 9,797 2,971 12,514 5,451 1,505

Explanation / Answer

7. The formula being used is,

CAGR = ((End value/Initial value)^(1/n))-1

((2014 value/1980 value)^(1/34))-1

2014

1980

No of years

Compound Annual growth rate

United states

51958

29288

34

1.70%

Canada

43376

24716

34

1.67%

Ireland

52186

12845

34

4.21%

Indonesia

9797

2249

34

4.42%

Ethiopia

1505

690

34

2.32%

2014

1980

No of years

Compound Annual growth rate

United states

51958

29288

34

1.70%

Canada

43376

24716

34

1.67%

Ireland

52186

12845

34

4.21%

Indonesia

9797

2249

34

4.42%

Ethiopia

1505

690

34

2.32%