The growth rate shows the ratio between the base and the compared level, expressed as a percentage. This value is found in the study of the dynamics inherent in various phenomena in public life. It is the method of comparing the levels at which the necessary indicators are displayed that makes it possible to analyze the degree of changes in phenomena over time. These values include:
- growth rate;
- growth rate;
- The absolute value of the increase in the amount of one percent.
The growth rate is calculated in two ways:
- using one hundred percent calculation and the corresponding growth rate ;
- in the form of a ratio in percent of the absolute value of growth to the basis that was taken to calculate the amount of growth.
Based on the foregoing, we can conclude about the relationship of all these indicators.
The growth rate is a value characterizing the degree of increase or decrease in the level of the phenomenon under study. If the degree of time series is reduced, then this indicator has a negative value. With an increase in the level of the analyzed social phenomenon, the growth rate is a positive value. If the process is unchanged, this value can be equal to zero.
All indicators used to analyze the dynamics are calculated either on a variable or on an ongoing basis of comparable material. Moreover, as a rule, the level that needs to be compared is called the reporting level, and the level with which the comparison is made is called the base. In the case when the levels of the series are analyzed with a variable basis, each subsequent indicator value is compared with the previous ones. Such quantities are chain. If the comparison is carried out with a constant level, then such indicators are called basic.
The growth rate characterizes the change in any economic element over a certain time period. The dynamics of changes in levels is determined both in absolute terms and in percent.
To determine the generalizing characteristics of the dynamism of the analyzed phenomena, it becomes necessary to determine the average values. The method of their calculation directly depends on the nature of the studied economic element. If the series of dynamics are presented in an interval form, then the formula of the arithmetic mean simple is applied. In the study of the moment series, the calculation of average levels is directly dependent on the nature of the economic component.
Annual growth rates are measured as a percentage of years. To summarize this indicator, the average value is calculated . It is calculated as follows:
- calculate the average annual rate of growth using the formula of the geometric mean;
- based on the value of the obtained indicator, they obtain the average annual growth rate, multiplying the coefficient by one hundred percent.
The average annual growth rate is the value obtained by subtracting one hundred percent from the growth rate. The resulting value will allow us to analyze the dynamics of the development of various interrelated phenomena over a long time period (output, growth rate of the number of employees, etc.) The studied indicator will help determine the dynamics of a social phenomenon in different states. Also, the growth rate in average annual terms allows you to compare a specific event in the context of the historical period in the development of the country.
When conducting a statistical analysis, all elements of the dynamics must be compared together, in a complex. This condition requires fulfillment in connection with the inextricable links that exist between levels, absolute and relative growth, pace of development, etc.