Question

In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2011 to 2012

Answer 1

Answer:

From 2011 to 2012, in Armenia there was a real economic growth rate of 9.32%.

Explanation:

To calculate the real growth of the Armenian economy between 2011 and 2012, we must obtain the GDP per capita numbers, in order to quantify the economic growth by comparing it with the country's population growth.

In 2011, the country's GDP per capita was $ 1,412.75, as a result of dividing the GDP by the total population (4.21 billion / 2.98 million). Instead, in 2012, following the same procedure (4.59 billion / 2.97 million), the GDP per capita of Armenia was $ 1,545.45.

As can be seen, there was economic growth on the part of Armenia, which increased its GDP per capita by $ 132.70. To determine the percentage of such growth, we must determine the percentage that $ 132.7 represents in $ 1,412.75. To do this, we will use a cross multiplication:

1,412.75 = 100

131.7 = X

(100 x 131.7) / 1,412.75 = X

13,170 / 1,412.75 = X

9.32 = X

As can be seen, from 2011 to 2012 there was a real economic growth in Armenia of 9.32%.