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I was using R to calculate the annualized quarterly growth rate of real GDP by 400*diff(log(rgdp)).

If I perform in this way some of the percentage change is big.

However, if I calculate as 100*diff(log(rgdp)) than results seems to be accurate as what shows up on the most of the website.

Why is this happening? follow by the growth formula it should be multiplied by 400, not 100.

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  • $\begingroup$ Is the data you have in GDP annual or quarterly? if it is annual, then the 100 is appropriate. $\endgroup$ – Regio Apr 22 at 17:25
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Perhaps quarterly growth should be multiplied by 400, but not annualized quarterly growth?

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