Singapore had released its 3rd quarter annualized GDP growth in 2016 for Singapore which was at -4.1%. What does this mean? It means that Singapore GDP has been contracting at an effective rate of 0.9896% per quarter (0.9896^4 = 0.959, 0.959-1 = -4.1%) which is about 1% contraction per quarter on a compounding basis.
If we have a 1% expansion per quarter, it will mean an annualized rate of 4.1% (1.01*1.01*1.01*1.01 = 4.1% or 1.01^4 = 4.1%) on a quarterly compounding basis. Therefore, annualized rate has a compounding element. I hope this will clarify your understanding on annualized rate.
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