Dhaka v/s Kolkata

[Lil Mathew]

Dude, you have simply lost it! Nominal GDP actually relies on base years and is also termed as "GDP on current prices". There is nothing like "real gdp on current prices". "Real GDP" or "GDP on constant prices" comes by adjusting the nominal GDP with the inflation which as a result shrinks the total amount. That's the reason why Nominal GDP shows a higher figure than real GDP.

Nominal GDP relies on base year... From where you got this information ???
So you posted this much posts without knowing the basic difference between nominal and real gdp..It is not like that dude... I'll explain...

Nominal GDP Growth vs. Real GDP Growth
GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example:
Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the nominal and real GDP are the same. In the year 2001, the economy produced $110B worth of goods and services based on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000 prices are used. Then:
Year 2000 Nominal GDP = $100B, Real GDP = $100B
Year 2001 Nominal GDP = $110B, Real GDP = $105B
Nominal GDP Growth Rate = 10%
Real GDP Growth Rate = 5%
Once again, if inflation is positive, then the Nominal GDP and Nominal GDP Growth Rate will be less than their nominal counterparts. The difference between Nominal GDP and Real GDP is used to measure inflation in a statistic called The GDP Deflator. 

Dude, you have simply lost it! Nominal GDP actually relies on base years and is also termed as "GDP on current prices". There is nothing like "real gdp on current prices". "Real GDP" or "GDP on constant prices" comes by adjusting the nominal GDP with the inflation which as a result shrinks the total amount. That's the reason why Nominal GDP shows a higher figure than real GDP.

I'll give you some links ... Read this....
http://en.wikipedia.org/wiki/Real_gross_domestic_product
http://en.wikipedia.org/wiki/Measuring_GDP
http://www.diffen.com/difference/Nominal_GDP_vs_Real_GDP

 

[dray]

Kolkata is the main economic center for a much larger area than entire Bangladesh, it has high value industries like IT that Dhaka doesn't have, the city is also the eastern regional headquarter of most companies and headquarter of one of the biggest companies in India, ITC, and many other smaller companies. the city enjoys two ports, and it is the hub of railway freight corridors and national highways servicing the entire eastern and north-east India. Kolkata is still the 3rd major Metro city of a big county like India, it is very likely that Kolkata will have a much higher GDP than Dhaka. However, let us agree to disagree on this and stop this boring GDPtalk that is going on for last 5-6 pages.

 

[extra terrestrial]

Nominal GDP relies on base year... From where you got this information ???
So you posted this much posts without knowing the basic difference between nominal and real gdp..It is not like that dude... I'll explain...

Nominal GDP Growth vs. Real GDP Growth
GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example:
Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the nominal and real GDP are the same. In the year 2001, the economy produced $110B worth of goods and services based on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000 prices are used. Then:
Year 2000 Nominal GDP = $100B, Real GDP = $100B
Year 2001 Nominal GDP = $110B, Real GDP = $105B
Nominal GDP Growth Rate = 10%
Real GDP Growth Rate = 5%
Once again, if inflation is positive, then the Nominal GDP and Nominal GDP Growth Rate will be less than their nominal counterparts. The difference between Nominal GDP and Real GDP is used to measure inflation in a statistic called The GDP Deflator. 


I'll give you some links ... Read this....
http://en.wikipedia.org/wiki/Real_gross_domestic_product
http://en.wikipedia.org/wiki/Measuring_GDP
http://www.diffen.com/difference/Nominal_GDP_vs_Real_GDP

Copy pasting texts from wikipedia just shows more of your ignorance, so stop embarrassing yourself.

Nominal and Real both GDP rely on base year. As I said, Real GDP comes from adjusting the nominal GDP with the inflation (or deflator), if the inflation is positive then the Real GDP becomes smaller than the Nominal GDP since you have to divide the Nominal GDP by the deflator (which increases as the inflation increases) to get the Real GDP.

If you can't understand these things, just try to understand that "Nominal GDP" is also referred to as "GDP on current prices". The article which I posted says the GDP of Bangladesh stands at 153.58 billion on current prices, in other words, the Nominal GDP is 153.58 billion.

 

[Aka123]

Kolkata and Dhaka – an intertwined history
http://www.bauwelt.de/cms/bauwerk.html?id=5512643#.UnshJ6VSEzU

 

[Anubis]

Bengal was the richest province of the Mughal Empire.Thank the Brits for ruining it!

 

[extra terrestrial]

Kolkata and Dhaka – an intertwined history
http://www.bauwelt.de/cms/bauwerk.html?id=5512643#.UnshJ6VSEzU

Dhaka's riverfront is simply horrible! Hope Hatirjheel could inspire to do something similar with Burigonga!

 

[Lil Mathew]

Copy pasting texts from wikipedia just shows more of your ignorance, so stop embarrassing yourself.

Nominal and Real both GDP rely on base year. As I said, Real GDP comes from adjusting the nominal GDP with the inflation (or deflator), if the inflation is positive then the Real GDP becomes smaller than the Nominal GDP since you have to divide the Nominal GDP by the deflator (which increases as the inflation increases) to get the Real GDP.

If you can't understand these things, just try to understand that "Nominal GDP" is also referred to as "GDP on current prices". The article which I posted says the GDP of Bangladesh stands at 153.58 billion on current prices, in other words, the Nominal GDP is 153.58 billion.

ha ha.. I didn't copy pasted that from wikipedea.. That is from an another source.. Also everyone here rely on internet for information.. I thought you can understand from that source.. So i copy pasted.. But you can't.. Okk.. I'l explain in my words..
Nominal gdp= number of products produced in an year * current value...
Please explain what is the significant of base year in that.. You can copy paste from any source in internet..
Nominal gdp adjusted with inflation is called real gdp.. That is we use a constant price from a base year for the calculation of real gdp.. For that first we find gdp deflator comparing current price of products with constant price in base year..
The reason your gdp increased may of some other reasons.. Than is when statical departments change the base year they will include some more products or sectors..

 

[extra terrestrial]

ha ha.. I didn't copy pasted that from wikipedea.. That is from an another source.. Also everyone here rely on internet for information.. I thought you can understand from that source.. So i copy pasted.. But you can't.. Okk.. I'l explain in my words..
Nominal gdp= number of products produced in an year * current value...
Please explain what is the significant of base year in that.. You can copy paste from any source in internet..
Nominal gdp adjusted with inflation is called real gdp.. That is we use a constant price from a base year for the calculation of real gdp.. For that first we find gdp deflator comparing current price of products with constant price in base year..
The reason your gdp increased may of some other reasons.. Than is when statical departments change the base year they will include some more products or sectors..

Well, your texts appeared to be exactly the same from that of wikipedia, but yeah you added some of your personal commentary to suit your irrational argument. And no, everyone here doesn't rely on internet for some basic knowledge which you seriously lack.

Base year is always significant, since when you calculate a GDP, you need to calculate the price of the produced goods based on a specific year. Rebasing an economy could add new products which were absent in the previous base year, as well as increase the prices of the goods which were cheaper in the previous base year, hence in most cases, figures get higher with a new base year. It's important to re-base the economy time to time since it gives you more accurate info. In fact IMF and World Bank recommend it to rebase the economy in every five year.

GDP deflator is based on the inflation rate and is measured having 100 as the median parameter. Suppose the price of the good in a GDP increased 10%, then the deflator of the GDP would be 110. If the price decreases 10% then the deflator would be 90.

BTW are you a sock puppet of Truth Finder?

 

[dray]

One thing for sure, real & nominal GDPs are not the same. Here is a quote:

"The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP.

Nominal values of GDP (or other income measures) from different time periods can differ due to changes in quantities of goods and services and/or changes in general price levels. As a result, taking price levels (or inflation) into account is necessary when determining if we are really better or worse off when making comparisons between different time periods. Values for real GDP are adjusted for differences in prices levels, while figures for nominal GDP are not."

And some links that google throws, and we already have enough of GDP gyan, please stop it:

Nominal vs. Real GDP, and the GDP Deflator - CFA Level 1 | Investopedia
What's the Difference Between Nominal and Real?
Nominal GDP vs Real GDP - Difference and Comparison | Diffen
Lesson 6.2: Real vs. Nominal | Basics of Macroeconomics
Real versus nominal value (economics) - Wikipedia, the free encyclopedia

 

[Bombaywalla]

Self deleted

 

[extra terrestrial]

One thing for sure, real & nominal GDPs are not the same. Here is a quote:

"The main difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP.

Nominal values of GDP (or other income measures) from different time periods can differ due to changes in quantities of goods and services and/or changes in general price levels. As a result, taking price levels (or inflation) into account is necessary when determining if we are really better or worse off when making comparisons between different time periods. Values for real GDP are adjusted for differences in prices levels, while figures for nominal GDP are not."

And some links that google throws, and we already have enough of GDP gyan, please stop it:

Nominal vs. Real GDP, and the GDP Deflator - CFA Level 1 | Investopedia
What's the Difference Between Nominal and Real?
Nominal GDP vs Real GDP - Difference and Comparison | Diffen
Lesson 6.2: Real vs. Nominal | Basics of Macroeconomics
Real versus nominal value (economics) - Wikipedia, the free encyclopedia

The bold part is what I'm trying to tell Lil Mathew. Also he argues that the 153.58 billion is not the nominal figure while the article clearly say the figure is on current prices. To support his argument he even invented a hilarious term of "Real GDP on current prices".

 

[Bombaywalla]

I'm no fan of the shopping mall, but it's nice to know that Calcutta now has a shiny new luxury mall with the world's leading luxury brands, which means that Calcuttans won't have to travel all the way to Bombay, Delhi, Hong Kong, or London, to buy the latest from Gucci, Emporio Armani, Rolex, Paul Smith etc. Pictures of this new mall 'Quest' would be greatly appreciated.

 

[Lil Mathew]

The bold part is what I'm trying to tell Lil Mathew. Also he argues that the 153.58 billion is not the nominal figure while the article clearly say the figure is on current prices. To support his argument he even invented a hilarious term of "Real GDP on current prices".

Real gdp = number of products in market * current value of goods adjusted to the inflation based on a base year.. I'll explain simply.. That is if a products's price is 100 now.. Suppose in 2005 it was 90.. But when we consider the inflation if the value of 90 in 2005 now is 105 the current price actually decreased that is it's current value is less than 90 when compared to 2005.. I think now you understand why i said real gdp in current value.. That is real gdp is number of products multiplied by current value of that products adjusted to inflation with respect to a base year..
You are saying gdp increased to 150 from 130 when changed the base year.. Then why world bank giving only 115 instead of 130? Also world bank will update its figures when a country done a change.. That is as bangladesh changed base year for real gdp the world bank will update its figures .. Also world bank follow an international standard for calculating its nominal gdp.. That is some particular products, sectors etc. although they are getting datas from respective statitical institutions.. Many countries follow world bank standards for international compatibility.. But some countries not.. So the national gdp figures of france, usa etc.. differ from world bank's.. This 150 may be your departments gimmik like indian planning commisions poverty figures.. According to indian planning commision there will be no extreme poor after 2015 but international agency's figures are diff.. Anyway when we compare two countries we use world banks figures.. That is nominal gdp of bangladesh in 2012 is 115 bil dollars.. Also nominal gdp is number of products multiplied with current price in that year itself ,no relation with base year..

 

[Anubis]

Real gdp = number of products in market * current value of goods adjusted to the inflation based on a base year.. I'll explain simply.. That is if a products's price is 100 now.. Suppose in 2005 it was 90.. But when we consider the inflation if the value of 90 in 2005 now is 105 the current price actually decreased that is it's current value is less than 90 when compared to 2005.. I think now you understand why i said real gdp in current value.. That is real gdp is number of products multiplied by current value of that products adjusted to inflation with respect to a base year..
You are saying gdp increased to 150 from 130 when changed the base year.. Then why world bank giving only 115 instead of 130? Also world bank will update its figures when a country done a change.. That is as bangladesh changed base year for real gdp the world bank will update its figures .. Also world bank follow an international standard for calculating its nominal gdp.. That is some particular products, sectors etc. although they are getting datas from respective statitical institutions.. Many countries follow world bank standards for international compatibility.. But some countries not.. So the national gdp figures of france, usa etc.. differ from world bank's.. This 150 may be your departments gimmik like indian planning commisions poverty figures.. According to indian planning commision there will be no extreme poor after 2015 but international agency's figures are diff.. Anyway when we compare two countries we use world banks figures.. That is nominal gdp of bangladesh in 2012 is 115 bil dollars.. Also nominal gdp is number of products multiplied with current price in that year itself ,no relation with base year..

Is the nominal gdp based on local market value or international market value??

 

[Lil Mathew]

Is the nominal gdp based on local market value or international market value??

In wikipedia ' gross domestic product' , the methods of evaluating prices are nicely given.. Just read it that is better than i copy paste it.. Very simple easily understandable..