0
$\begingroup$

If I have data for nominal GDP data in local currency for several countries for a given year, how can I extrapolate the nominal GDP forward?

Give that nominal GDP = quantities x prices, could I just use a growth factor that considers growth in 'quantities' and growth in 'prices'? For example, changes in real GDP per capita between the year of interest and my base year for which I have data. Similarly, changes in GDP deflator between the year of interest and my base year for which I have data.

An alternative is to simply a growth factor based on the changes in the nominal GDP between the year of interest in my base year.

$\endgroup$
  • $\begingroup$ Do the two approaches you have outlined lead to different results? If yes, then how the data was gathered is probably important. $\endgroup$ – denesp Oct 8 '18 at 16:55

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Browse other questions tagged or ask your own question.