How will the percentage change in GDP will be calculated?

We will be using the following formula to calculate the percentage change in GDP:

((Quarterly GDP Figure / Current Peak Value) -1) * 100

Here is a hypothetical example for explanatory purposes only:

The current peak value is Q3 2008. The GDP figure for that quarter was $14,412.8 billion.

Lets say that the Q1 2009 GDP figure is $14,027.5 billion.

The formula will therefore be: ((14,027.5 / 14,412.8) -1) * 100.

The outcome of this calculation is -2.7, which means that GDP has declined by 2.7%. This is not enough of a decline for any contracts to be expired.

Here is a second example:

The current peak value is Q3 2008. The GDP figure for that quarter was $14,412.8 billion.

Lets say that the Q1 2009 GDP figure is $12,475.6 billion.

The formula will therefore be: ((12,475.6 / 14,412.8) -1) * 100

The outcome of this calculation is -13.4. This means that GDP has declined by 13.4%, which is enough for the -10.0% contract to be expired.