Gross Domestic Product

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Assignment � Business for Engineering

Introduction

This is a brief report containing a table of the UK’s GPD for the 11-year period 18 to 1. A graph of the data has been produced to show the results more clearly. The percentage increase and the average annual percentage increase in GDP will be calculated from the period 10-1. Also the years in which the actual increase were the least and the greatest will be obtained.

A Line graph showing the UK’s GDP for the period 18 to 1.




Percentage increase in GDP over the 10 year period 10 to 1

The percentage increase in GDP is calculated by using the following formula

Percentage Increase = Change in GPD x 100

Original GPD

Therefore the Percentage Increase = (78785 � 50147) x 100 = 57.01%

50147

Another way of finding the percentage increase in GDP from 10-1 is by working out all the individual annual percentage increases for each year, and then adding them together.

This gives an increase in GDP of 54.85%.

The average annual percentage increase in GDP over the 10 year period from 10 to1

To work out the average annual percentage increase the individual annual percentage increase of each year must be worked out first. This is calculated using the formula shown on the previous page. The answers are showed in the table below in the annual percentage increase column. The average can then be found by adding up the values and dividing them by 10 (the number of values). The average annual percentage increase is 5.4%

Year GDP (£ million) Annual Percentage Increase Actual Annual Increase



18 4615 - -

10 50147 8.56 548

11 517 4. 1664

1 545487 4.7 50

1 5777 5.11 780

14 60670 5.8 4

15 6548 4.74 8778

16 6740 6.06 851

17 71517 6.10 4108

18 7557 5.6 40170

1 78785 4.5 088

Average 5.4 546

The year in which the actual increase in GDP was the greatest and the least.

The table above shows that the highest increase in GDP was 4108, which occurred in year 17. The lowest increase is 1664, which is year 11. These values were found by subtracting the previous actual annual increase away from the current GDP.



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