The value of the growth rate is used in the dynamic analysis of the rate and intensity of the development of a process or phenomenon. For its calculation, quantitative values obtained at regular intervals are used. Growth rates are subdivided into base and chain rates. Basic growth rates are calculated from a certain value taken as the base, chain growth rates - from the value in the previous period.
Instructions
Step 1
Growth rates are expressed as a percentage. If we calculate the average annual growth rate, the analyzed period under consideration will be from January 1 to December 31. It coincides not only with the calendar year, but also with the financial year usually taken into account in statistics. It is most convenient to take the value of the base indicator, for which the growth rate will be determined as 100%. Its value in absolute terms should be known as of January 1.
Step 2
Determine the absolute values of indicators at the end of each month of the year (APi). Calculate the absolute values of the growth of indicators (Pi) as the difference between two compared levels, one of which will be the base value of indicators on January 1 (By), the second - the values of indicators at the end of each month (Pi):
APi = Po - Pi, you should get twelve such absolute values of monthly growth, according to the number of months.
Step 3
Add up all the absolute values of the increase for each month and divide the resulting amount by twelve - the number of months in a year. You will receive the average annual growth rate in absolute units (P):
P = (AP1 + AP2 + AP3 + … + AP11 + AP12) / 12.
Step 4
Determine the average annual baseline growth rate KB:
KB = P / Po, where
By - the value of the base period indicator.
Step 5
Express the average annual baseline growth rate as a percentage and you get the average annual growth rate (TRg):
TRsg = KB * 100%.
Step 6
Using the indicators of average annual growth rates over several years, you can track the intensity of their change over the long-term period under consideration and use the obtained values to analyze and forecast the development of the situation in the economy, industry, and the financial sector.
