Bangladesh GDP to be rebased upwards by at least 15%

[animelive]

Let's see if your tiny brain can process that bit of 'information'.

The article did say 1600 which you opposed aand now its 1591, so what is there to process?just curious

 

[Roybot]

The article did say 1600 which you opposed aand now its 1591, so what is there to process?just curious

Ironically he doesn't see that Pakistan's 1288 is also rounded off to 1300.

 

[MandarK]

Ironically he doesn't see that Pakistan's 1288 is also rounded off to 1300.

The article did say 1600 which you opposed aand now its 1591, so what is there to process?just curious

He wanted to say that 1600 is an estimate by IMF staff and not the actual figures of Government of India.

 

[FarazUSA]

He wanted to say that 1600 is an estimate by IMF staff and not the actual figures of Government of India.

I think neutral opinions always have more weightage since they do not fudge the data.

 

[CaPtAiN_pLaNeT]

Indeed, most economies do have shadow economies. In Bangladesh's case, there is no good (reliable) estimate for the size of the shadow economy. Some crude estimates put that closer to 40%+ of the economy.

The point is there should have been lots of (unreported), new economic activities (probably involving 'new' economic sectors altogether) that would have been included had pro-growth, sustainable development policies been implemented. Instead, BAL (government) ruined it all by widespread looting, policy paralysis, nepotism and corruption, diplomatic inertia/failure, and the fact that BAL is a stooge so it would never take any step to propel Bangladesh economy to a greater height than that of its "dadababus" (its masters across the border wearing "dhotis").

Bangladesh has been using a base year of 1995-1996 to produce National Accounts statistics for as late as 2011-2012. And yet, all they can add upon shifting to a new base year of 2005-2006 is 15%? For Nigeria, shifting from a base year of 1993-1994 to the current/next year, the GDP revision is slated to be upwards of 40%.

15% figure also surprised me also as during the time of up-gradation from 1985 base year to 1995 base year GDP was revised by 30% and during the shifting from 1995 to 2005 it should have been more as it is done after long 13-14 years. However I think it has been done intelligently as government is going to rebase the year from 2005 to 2010 or 2011 in 2 year time which will be after the meeting of 2015 which will decide which are the countries going to get the benefit of LDP status. Already there are huge pressure on Bangladesh to graduate from the status but this will be silly at this moment. If you look at the price increase of every thing and consider people's purchasing power it should be way more then 15%.Bangladesh needs to count all the uncounted and hidden economy towards it's GDP.

 

[CaPtAiN_pLaNeT]

This is the full article and it says Bangladesh's GDP will be up by at least 15-20%. In other words GDP can be increased much more then 15-20% figure. Lets see how much BBS is going to increase the GDP.

GDP size to be bigger by 15 per cent this year
Coverage of new areas under way

http://www.thefinancialexpress-bd.com/index.php?ref=MjBfMDJfMjNfMTNfMV8xXzE2MTAyOQ==

Published : Saturday, 23 February 2013

Jasim Uddin Haroon

The size of the country's gross domestic product (GDP) is likely to be larger by at least 15 per cent in the current year as the country's national statistical organisation is set to bring in some new areas under its coverage and rebase the base year.

Analysts said, if the Bangladesh Bureau of Statistics (BBS) rebases the GDP with adequate coverage, the country's economy will stand at more than U$130 billion this fiscal year (2012-13).

The BBS is set to rebase the base of the GDP measurement to the year 2005-06 from 1995-96 with revision of products to give a more accurate reading of the economy's structure.

Bangladesh's per capita income will go up in line with the rise in size of the GDP.

It needs $1,006 per capita income to pull the country up to the middle-income bracket.

Jobdul Hoque, a GDP measurement expert, said: "The country's size of the real economy will grow by at least 15-20 per cent once the areas that have not been covered until now accounted for."

"Let alone the hidden sectors, there are many areas including informal sectors like footpath vendors remained outside of the GDP measurement for long," Hoque, a member of GDP calculation technical committee, said. He said, the members of the technical committee made some observations to calculate more authentic GDP noting: "We expect that this will be reflected in this year's calculation."

Sajjad Zohir, research director of the ERG (Economic Research Group), told the FE: "A number of estimations are based on small surveys leading to poor calculation."

Zohir said: "I think that livestock remains inadequately covered if we look at the production of milk each day."

Zohir said, even financial sectors under the services still are not properly calculated.

"Contribution of health services operating in the public sector is also not adequately calculated," the research director said. The BBS has been working relentlessly to measure this year's GDP under the new base year.

"We have started preparations for shifting the base of the GDP to 2005-06 as per the recommendations of the technical committee," said Satiya Ranjan Mandal, chief of national accounting wing at the BBS.

"We're working on it. So far, we've advanced in line with our goal," he added.

A consultant of International Monetary Fund (IMF) Dr AC Kulshrestha trained the BBS officials and put forward some recommendations before the statistics and informatics division in this regard.

Updating the base year through revising the GDP estimation has become essential for various reasons including newer economic activities, progressive expansion and downsizing of various industries and economic sectors over the years.
- See more at: GDP size to be bigger by 15 per cent this year :: Financial Express :: Financial Newspaper of Bangladesh