New base year from FY12 for GDP counting
The Gross Domestic Product (GDP) of the current fiscal year 2011-12 would be calculated benchmarking 2005-06 as the new base year. The Bangladesh Bureau of Statistics (BBS) is doing necessary works in this regard.
Taking to daily sun, Statistics Division Secretary Riti Ibrahim said the GDP base year would be upgraded to 2005-06, and the necessary works were going on in this regard.
The statistic division is upgrading the GDP base year as massive structural change has taken place in the country's economy in last 15 years.
A consultant of International Monetary Fund (IMF) has already met the concerned Statistics Division officials in January. Dr AC Kulshrestha, the IMF expert, trained the BBS officials and put forward some recommendations before the statistics division in this regard. The IMF consultant will sit with the BBS officials again soon to complete the necessary work, said an official.
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. Changes in relative prices of commodities also require revision to correctly mirror the real growth.
At present, the GDP is estimated by benchmarking 1995-96 fiscal as the base year, sources said. Meanwhile, different sub sectors under 15 fixed sectors which are main indicators of GDP counting are being reshuffled as there is no option to change the fixed sectors.
BBS sources said 15 sectors were identified as per the system of national account (SNA), 1993 for counting the GDP that was also approved by the United Nation. It is also an international benchmark. Bangladesh started GDP counting since 1988-89.
The fifteen sectors include agriculture and forestry, fisheries, mineral resources, industry, power, gas and water resources, construction, whole and retail sales, hotel and restaurant, transport, communi-cations, economic institutions, real estate, rented and other business, public administration and defense, education, health and social service, and community, social and personal services.
BBS sources said these 15 sectors are unchangeable. In a revised base year, Knitwear, woven, button and washing factory will be defined separately in the industry sectors.
Similarly, private universities, coaching centre and English medium schools were also included in the education sectors. More than 50 private universities were established in the country last decade that contribute to the GDP.
Economic institution service including bank, insurance and non banking sectors was considered as government institutions. But, the private bank, economic institution and insurance will be included to count their contribution as thousand of people are employed in those organisations.
Service sector bas also received massive changes over the period. Mobile phones, courier service, private television and package programme are boosting in terms of business. Huge numbers of people are involved in those services. Whenever the GDP base year was formulated, those areas did not exist or existed in limited scale.
The heath-service sector has also flourished which includes private hospital, clinic and diagnostic centre and a huge number of doctors, nurses as well as non-medical people are employed in the sub-sector. Their contribution to the GDP will be counted in the new system.
Production of agricultural crops particularly vegetables and other minor crops recorded rapid growth while new crops were also developed.
Similarly increased the contribution of poultry, livestock, fisheries, fish fry helping to diversify sources of agricultural growth.
Construction industry is also booming following the massive urbanisation and commercialisation. Information and communication sector is also expanding is also expanding at a phenomenal rate.
daily sun | Business | New base year from FY12 for GDP counting
