A country has 3 major economic sectors: agriculture, manufacturing and services - with their share of the country's Gross Domestic Product (GDP) being 40, 20 and 40 percent, respectively. Of these, services is growing at 10% per annum, whilst agriculture is growing at 4%. The GDP in aggregate is estimated to be growing at 6% yearly: what is the annual rate of growth of manufacturing in percent?
A country has 3 major economic sectors: agriculture, manufacturing and services - with their share of the country's Gross Domestic Product (GDP) being 40, 20 and 40 percent, respectively. Of these, services is growing at 10% per annum, whilst agriculture is growing at 4%. The GDP in aggregate is estimated to be growing at 6% yearly: what is the annual rate of growth of manufacturing in percent?
Solution
✅ Correct Option: 1
The overall GDP growth is a weighted average of each sector's growth:
The annual rate of growth of manufacturing is .
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BMSAT Kozhikode 2025
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