How can the GDP's growth rate be positive, when the GDP decreases? I have question about following charts in Mozambique. Here is GDP of Mozambique in 2010-2016 - https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2019&amp;locations=MZ&amp;start=2008. You can clearly see that GDP grows from 11 billion to 17.8 billion and then lowers in 2014-2016 from that number to 12 billion dollars. However, the GDP growth rate remains positive (between 6-7 % - https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2019&amp;locations=MZ&amp;most_recent_value_desc=false&amp;start=2005). How is it possible, shouldn't the &quot;GDP growth&quot; be negative?
I understand the growth rate isn't as easy as year-2-year change. Perhaps there is inflation (that was pretty low in Mozambique, around 2%), maybe exchange rate plays a role as well?
Thank you a lot for answer!
Your first link is &quot;GDP (current US$)&quot;.
Your second link &quot;GDP growth (annual %)&quot; is &quot;based on constant local currency&quot; (from &quot;Details&quot;).
For figures that correctly correspond to your second link, see instead this third link: &quot;GDP (constant LCU)&quot; (LCU = local currency unit).
The discrepancy between the first and third links is explained by the great fall in the Mozambican metical (against the USD) in 2015 and 2016: