There are several ways to gauge a nation’s economic development, but the real gross domestic product is the one that is most frequently employed (GDP). The total worth of goods and services generated in an economy during a specific time period is known as the real GDP; the term “real” denotes that the GDP has been adjusted to account for the effects of inflation. The growth of real GDP is measured by two separate methods published by Statistics South Africa (Stats SA): first, the quarterly growth at a seasonally adjusted and annualized rate; and second, the unadjusted year-over-year quarterly increase.
Quarterly real GDP growth at an annualized and seasonally adjusted rate.
Real GDP changes from one quarter to the next are reflected in the quarterly growth at a seasonal adjusted and annualized rate, expressed in an annualized rate. The percent change between the two quarters multiplied by an exponent of four yields the annualized rate. Before being annualized, the quarters are seasonally adjusted to eliminate all seasonal effects. This approach is founded on the
This process, known as “annualising,” is employed in South Africa as the official economic growth rate under the presumption that the percentage change from one quarter to the next will be maintained for the full year.
Real GDP quarterly growth over the previous quarter, unadjusted.
With this approach, the quarterly real GDP level in one quarter is contrasted with the same quarter the year before. This method does not annualize or seasonally modify the quarters. Since it eliminates the effects of seasonal changes, some analysts favor this strategy for year-to-year comparisons. As opposed to the quarterly growth at a seasonal adjustment and annualized rate, which only considers the past three months, this approach examines the economy’s performance over the entire prior year.
What are the 5 indicators of economic growth?
Gross Domestic Product (GDP) The Gross Domestic Product (GDP) is widely accepted as the primary indicator of macroeconomic performance.
Purchasing Manager’s Index (PMI)
Consumer Purchasing Index (CPI)
Procyclical.
Countercyclical.
Acyclical.
