Question

Country Medico Panama Thailand 2013 2014 2015 $13.468 513.773 514,136 32 34 35 9,146 9.230 9,501 2016 514 461 38 9,808 Note: All values are in billions of domestic currency at constant prices Source: International Monetary Fund, World Outlook Database, April 2017 The country that experienced the highest rate of economic growth during 2014 is rounded to two decimal places) with a growth rate of (Enter your response as a percentage

Answer 1

Since economic growth means an increase in the production of output in the economy compare to previous time period. The economic growth it is possible through more investment in the capital stock. So when capital investment increases, then production of goods and services increases, so the real GDP increases.

Mexico economic growth in 2014=[(GDP 2014- GDP 2013)/ GDP 2013]*100

=[(13,773-13,468)/13,468)]*100

=2.26%

Panama economic growth in 2014=[(GDP 2014- GDP 2013)/ GDP 2013]*100

=[(34-32)/32]*100

=6.25%

Thailand economic growth in 2014=[(GDP 2014- GDP 2013)/ GDP 2013]*100

=[(9230-9,146)/9,146]*100

=0.918%

Hence it can be said that Panama has experience highest economic growth during 2014 and growth rate was 6.25%.