What is GDP for year 4?

start by applying constant growth rates over time. For convenience let's assume that GDP per capita of an imaginary country is 100 on year 1. We know that this country is growing at a constant growth rate g of 2% (0.02). What would GDP per capita be on year 2, on year 3, on year 4? For year 2, we start with GDP for year 1 and add 2% growth: GDPyear2 = GD Pyearl + 2%growth GDPyear2 = 100 + 100 x 0.02 = 100 x (1 + 0.02) = 102 For year 3, we take GDP at the end of year 2 and add 2% growth on top: GDPyear3 = GDPyear2 + 2%growth GDPyear3 = 102 + 102 x 0.02 = 102 x (1 + 0.02) = 104.04