Bangladesh Budget for fiscal 2011-2012, GDP and Defence spendiing

[damiendehorn]

Since we are discussing GDP, I got a question...

We all know india has almost double the GDP per capita compared to Bangladesh, but is that a fair comparison? India is huge and the distribution is not even throughout india’s 28 odd states and union territories, so I thought which state is the best comparison?

Well I found an interesting little page on wiki, which gives a breakdown of each states GDP, a few like Bihar, Assam and Madhya Pradesh have a lower per capita GDP (compared to Bangladesh) while most are higher, with Goa the highest. Don’t know how much of this data is accurate, but interesting nevertheless.

What I wanted to know is Uttar Pradesh has a population of almost 200 million I think, yet its GDP is given at around 98 odd billion, so that should equate to around under $500 per capita, and not $1300 as stated.

So what is the per capita GDP of Uttar Pradesh? Around $500 or $1300?

List of Indian states by GDP - Wikipedia, the free encyclopedia

 

[DaFan]

1) First of all, those who don't know how to calculate Nominal GDP shouldn't comment nonsense in this economic thread. Please learn how GDP is calculated and the difference between real and nominal GDP

Heres a small lesson

Nominal vs. Real GDP:

• 
  GDP is a measure of the market or money value of all final goods and services produced by the economy in a given year. we use money or nominal values as a common denominator in order to sum that heterogeneous output into a meaningful total.

• Since market value is measured by money, it is hard to compare the market values of GDP from year to year if the value of money itself changes in response to inflation and deflation. To solve this problem, we deflate GDP when prices rise and inflate GDP when prices fall according to a base year.

• Nominal GDP (unadjusted for inflation): Refers to GDP based on the prices of a product in the year it was produced. Not inflated or deflated.

• Real GDP (Adjusted for inflation): Refers to a GDP that has been adjusted for inflation or deflation to accurately show the increase or decrease in production for comparison of economic growth from year to year. Measured in relation to the price index of a given year.

GDP price index:

• A Price Index is a measure, or ratio, of the price of a specified collection of goods and services (market basket) in a certain year as compared to the price of the same or extremely similar "market basket" in a reference year (base year/ base period).

• Market Basket: specified collection of goods and services.

• Price Index in a certain yr =(Price of market basket in specific yr/Price of same market basket in base yr) x 100

• Price index= Nominal GDP / Real GDP. Multiply the base year's price to the output of each year to get the total real GDP. Multiply each year's price to its corresponding output and add them up to get total nominal GDP.

Dividing nominal GDP by price index

• Real GDP = nominal GDP / price index (in hundredths).

2) So since BD is staring from a very low base, BD can easily sustain 7.5 % growth rate from the next 15 years. With an ACCEPTABLE 7.5% inflation rate. In comparsion India's inflation rate was 9.1% last month ft.com/intl/cms/s/0/27837b8a-9758-11e0-9c9d-00144feab49a.html#axzz1PPUxRyMU

3) So 7.5% Real GDP growth+7.5% Inflation=15% <<<<Nominal Growth.

4)

5) BD will have a $1 trillion dollar economy within 16 years, which is 2027. Granted they grow at 7.5% for the next 15 years.

 

[fallstuff]

1) First of all, those who don't know how to calculate Nominal GDP shouldn't comment nonsense in this economic thread. Please learn how GDP is calculated and the difference between real and nominal GDP

Heres a small lesson

Nominal vs. Real GDP:

• 
  GDP is a measure of the market or money value of all final goods and services produced by the economy in a given year. we use money or nominal values as a common denominator in order to sum that heterogeneous output into a meaningful total.

• Since market value is measured by money, it is hard to compare the market values of GDP from year to year if the value of money itself changes in response to inflation and deflation. To solve this problem, we deflate GDP when prices rise and inflate GDP when prices fall according to a base year.

• Nominal GDP (unadjusted for inflation): Refers to GDP based on the prices of a product in the year it was produced. Not inflated or deflated.

• Real GDP (Adjusted for inflation): Refers to a GDP that has been adjusted for inflation or deflation to accurately show the increase or decrease in production for comparison of economic growth from year to year. Measured in relation to the price index of a given year.

GDP price index:

• A Price Index is a measure, or ratio, of the price of a specified collection of goods and services (market basket) in a certain year as compared to the price of the same or extremely similar "market basket" in a reference year (base year/ base period).

• Market Basket: specified collection of goods and services.

• Price Index in a certain yr =(Price of market basket in specific yr/Price of same market basket in base yr) x 100

• Price index= Nominal GDP / Real GDP. Multiply the base year's price to the output of each year to get the total real GDP. Multiply each year's price to its corresponding output and add them up to get total nominal GDP.

Dividing nominal GDP by price index

• Real GDP = nominal GDP / price index (in hundredths).

2) So since BD is staring from a very low base, BD can easily sustain 7.5 % growth rate from the next 15 years. With an ACCEPTABLE 7.5% inflation rate. In comparsion India's inflation rate was 9.1% last month ft.com/intl/cms/s/0/27837b8a-9758-11e0-9c9d-00144feab49a.html#axzz1PPUxRyMU

3) So 7.5% Real GDP growth+7.5% Inflation=15% <<<<Nominal Growth.

4)

5) BD will have a $1 trillion dollar economy within 16 years, which is 2027. Granted they grow at 7.5% for the next 15 years.

Take your crap somewhere else buddy. Guys like you don't last too long.

 

[fallstuff]

Where is Sammy, haven't seen his 'Bharti' stuff in a while !!!

 

[DaFan]

Then after reaching $1 Trillion, Economy growth will slow down naturally. Assuming growing at 6% with 6% inflation = 12% nominal growth. So it would take 6 years to double the economy so by 2033, BD will have a $2 Trillion dollar economy. Afterwards growth rate will slow down dramatically , maybe only 2-4% a year.

 

[twoplustwoisfour]

Take your crap somewhere else buddy. Guys like you don't last too long.

How is what he said 'crap'? Seems pretty logical to me....

 

[Galaxy]

Since we are discussing GDP, I got a question...

We all know india has almost double the GDP per capita compared to Bangladesh, but is that a fair comparison? India is huge and the distribution is not even throughout india&#8217;s 28 odd states and union territories, so I thought which state is the best comparison?

Well I found an interesting little page on wiki, which gives a breakdown of each states GDP, a few like Bihar, Assam and Madhya Pradesh have a lower per capita GDP (compared to Bangladesh) while most are higher, with Goa the highest. Don&#8217;t know how much of this data is accurate, but interesting nevertheless.

What I wanted to know is Uttar Pradesh has a population of almost 200 million I think, yet its GDP is given at around 98 odd billion, so that should equate to around under $500 per capita, and not $1300 as stated.

So what is the per capita GDP of Uttar Pradesh? Around $500 or $1300?

List of Indian states by GDP - Wikipedia, the free encyclopedia

A State of any country can't be compared with whole Country. U.P. doesn't have many industries so growth is limited. But U.P. people also go to near by state like Delhi/NCR or Haryana and Punjab too. It's GDP is around 1,320 USD (2010). Same goes with GOA, there are Millions of Foreign Tourist who comes to Goa; Hence, There are lots of state revenues. Mahrahstra GDP is quite large because it has many many industries many times of whole Bangladesh also. It all depends on State growth, Industries, Business, etc. Even State like Bihar now growing 15% every year as scope is huge. But Country can't grow 15% like that because it has many more responsibly like Defence, External Affairs, Central Departments, and many more

 

[Galaxy]

8.5% Inflation + 6.5% Growth = 15% Nominal growth. (As per current data)

So, It will double in around 5 Years.

110 Billion --> 220 Billion by 2016

220 Billion ---> 440 Billion by 2021

440 Billion --> 880 Billion by 2026

1 $ Trillion by 2027. Possible with same Rate of Inflation/Growth (+/- 1%)

Good Luck to Bangladesh

-----

After seeing above data, I forced to calculate India's growth.

India GDP @ 1.7 Trillion
Inflation @ 8%
GDP growth @ 8%-10% (As per last 10 years. Average @ 9%)

8% Inflation + 9% Growth - 17% Nominal Growth (As per current date)

Hence, By 2027 - Around $ 30 Trillion (3rd Largest in the World by 2027 may be before)

 

[DaFan]

^^ Just so you know its not easy to grow at 9% for 15 years once you GDP per capita is above $2000. But I read somewhere India will get to $30 Trillion around 2035. Good luck to u folks.

 

[Galaxy]

^^ Just so you know its not easy to grow at 9% for 15 years once you GDP per capita is above $2000. But I read somewhere India will get to $30 Trillion around 2035. Good luck to u folks.

$30 Trillion anywhere between 2025-2035 is possible what i read by few world's best research companies like Goldman Sacs, JP Morgan, Citi, Standard Charted, BoAMFL, Nomura, etc. India can grow 8%-10% for many years. India is not developed nation like U.S. India has improved a lot in last 10-15 years but it has huge scope still left. Still, many things need to be done in next couple of decades. India GDP is constant around 8%-10% for last 10-12 years. China Growth also, Indeed 1 decade ahead due to early economic reform. After 30 Trillion, it will grow around 3%- 5% may be........

 

[BanglaBhoot]

How is what he said 'crap'? Seems pretty logical to me....

Because it ignores everything that has been said about base years, black economy and exclusion of a large part of the service sector. His starting figure should be nearer $200 billion for BD. We will know better when the economic data of BD is updated but $110 billion is too conservative.

 

[BanglaBhoot]

$30 Trillion anywhere between 2025-2035 is possible what i read by few world's best research companies like Goldman Sacs, JP Morgan, Citi, Standard Charted, BoAMFL, Nomura, etc. India can grow 8%-10% for many years. India is not developed nation like U.S. India has improved a lot in last 10-15 years but it has huge scope still left. Still, many things need to be done in next couple of decades. India GDP is constant around 8%-10% for last 10-12 years. China Growth also, Indeed 1 decade ahead due to early economic reform. After 30 Trillion, it will grow around 3%- 5% may be........

Keep on dreaming India will never get there. The US has not achieved $30 trillion and India will. I don't think so ....................

 

[Galaxy]

Keep on dreaming India will never get there. The US has not achieved $30 trillion and India will. I don't think so ....................

It's not today data, Its estimated by 2030. U.S. will have 30-40 trillion+ @ that time. This is not i said. World Top Financial firms said. It's simple calculation without any dream probability. If that is not possible then also in very worst case scenario, we will reach 12 Trillion by 2% Growth in 2030 , And be sure Bangladesh also will not hit 1 trillion By 2050 also.

 

[Galaxy]

Bangladesh Population will hit 2,000+ per Sq. Km and India 450 Maximum. Think of how to Feed huge population, Control the Inflation further and of course grow the economy. I can say India can Hit 30 trillion not sure of 1 trillion by Bangladesh. Sorry, No Offence. Just my personal view as per future prospect.

 

[DaFan]

Bangladesh Population will hit 2,000+ per Sq. Km and India 450 Maximum. Think of how to Feed huge population, Control the Inflation further and of course grow the economy. I can say India can Hit 30 trillion not sure of 1 trillion by Bangladesh. Sorry, No Offence. Just my personal view as per future prospect.

You dont need to wrap your SMALL MIND into affairs of Bangladesh. In this global economy it DOESNT matter where the food is produced, who ever pays the highest gets it. One can easily buy from commodity exchanges. And for your information Goldman Sachs stated BD part of N-11 will reach 1 trillion dollar economy. Who are you, your just a measly poster in this forum, you think you know more than Goldman Sachs? Get real Dawg.