Question 14.12: Limpopo Province Gross National Product (GNP) Study The gros......
Limpopo Province Gross National Product (GNP) Study
The gross national product (GNP) for the Limpopo province for the period 2006 to 2010, together with the CPI for that region, as computed by Stats SA, is given in Table 14.18. (See Excel file C14.8 – provincial gnp.)
Management Question
Calculate the real growth in GNP from 2006 to 2010 for the Limpopo province.
Table 14.18 GNP (in R million) and CPI for Limpopo province (2006–2010)
| Year | CPI | GNP (monetary) |
| 2006 | 100.0 | 778 |
| 2007 | 104.3 | 806 |
| 2008 | 110.2 | 889 |
| 2009 | 112.2 | 930 |
| 2010 | 118.6 | 974 |
To convert the monetary GNP values into constant (or real) GNP values, divide the actual GNP by the CPI and multiply by 100 to express it as a percentage. The calculations are shown in Table 14.19.
To illustrate, for 2009, real GNP = \frac{930}{112.2} × 100 = 828.9.
Management Interpretation
Real GNP decreased marginally in 2007 from 2006 levels from R778 to R772.80 (0.67%), but showed real growth (year-on-year) of 4.39% during 2008 (from R772.80 to R806.70) and 2.75% growth during 2009 (from R806.70 to R828.90), but declined again in real terms in 2010 (by 0.92%).
Table 14.19 Real (constant) GNP (in R million) for Limpopo province
| Year | CPI | GNP (monetary) | GNP (constant) |
| 2006 | 100.0 | 778 | 778.0 |
| 2007 | 104.3 | 806 | 772.8 |
| 2008 | 110.2 | 889 | 806.7 |
| 2009 | 112.2 | 930 | 828.9 |
| 2010 | 118.6 | 974 | 821.2 |