Sri Lanka’s economy grew 9.1% in 2010, IMF report

[Lankan Ranger]

Sri Lanka

 

[Lankan Ranger]

Sri Lanka’s economy grew 9.1% in 2010, IMF report

The IMF in its World Economic Outlook 2011 has also classified Sri Lanka as an ‘Emerging Asian Economy’ along with heavyweights China India, Thailand, Philippines, Malaysia, South Korea, Indonesia, Hong Kong and Taiwan.

source

Sri Lanka

 

[F-16_Falcon]

Good for you. Many countries have high GDP growth these days.

 

[SpArK]

Congrats Sri Lanka

 

[fallstuff]

did my research found this

TOI research. , take it for all its worth

On the face of it, China grew by 10.3% last year, comfortably outpacing India's estimate of 8.6%. But the IMF's latest World Economic Outlook released earlier this week says that India grew by 10.4% in 2010. How can that be? Here's how the acclaimed journal crunches the numbers to arrive at the same conclusion. India typically reports its GDP "at factor cost", meaning it adds up all the income earned in the course of producing the country's goods and services. Other countries, including China, typically report their GDP "by expenditure", i.e. by adding up all the spending (including taxes) on domestically produced goodies.

So, says The Economist in a blog post, you have to factor in a couple of things into the Indian GDP: taxes and subsidies. A sales tax adds to the amount you have to spend on a good. A subsidy has the opposite effect. If these taxes and subsidies remained steady as a percentage of output, they would not affect the growth rate of GDP, even if they do affect its level.

In India, net indirect taxes rose from 7.5% of output in 2009 to 9.2% in 2010, boosting the growth rate of GDP by expenditure for that year. So if New Delhi adopts the same metric as other countries to measure its GDP, i.e., by expenditure, it lifts India's growth to 10.36% in 2010. "That's fully 0.06 percentage points faster than China. Jai Hind!" says The Economist.

Not everyone buys into the conclusion. "Brilliant. So all India has to do is increase indirect taxes every year by 1000% and her GDP will go to the moon," one reader wrote in snarkily. Another maintained that exchange rate is a more important factor than taxes, pointing out that the IMF estimates growth rates by converting the GDP of countries in local currencies to dollar at market exchange. While India's currency appreciated 6.4% in 2010, from Rs 48.85 per dollar in 2009 to Rs 45.93 in 2010, China's Renminbi appreciated only 0.9%, from 6.84 per dollar in 2009 to 6.77 in 2010. So India's GDP got a push that was higher than China's.


Did India grow faster than China in 2010? - The Times of India

 

[tallboy123]

@fallstuff
i already answered him....

that growth figures were given by IMF...International monetary fund...k

So do u think IMF has calculate India's growth in "at factor cost", meaning it adds up all the income earned in the course of producing the country's goods and services.

and china's by expenditure", i.e. by adding up all the spending (including taxes) on domestically produced goodies.

u wanna say that IMF did not calculated countires GDP growth in uniform method???
or u have some inferiority complex????
Did we Bribe IMF also or there is some RAW agent in IMF????
plz explain

fallstuff u also have the same opinion as Shinigami???'


@Shinigami Did u research on TOI????
the report from ToI is based on some blog..

 

[DesiGuy]

Congrats Sri Lanka

 

[tallboy123]

Well Done Sri Lankans

 

[prototype]

@fallstuff
i already answered him....
fallstuff u also have the same opinion as Shinigami???'
@Shinigami Did u research on TOI????
the report from ToI is based on some blog..

As far as I think both of u r right,IMF considered the expenditure cost of India rather than factor cost and so consider Indian growth as 10.4 %,while India underscore it's growth due to factor cost,if this is correct this yr Indian GDP growth will take a new dive (by IMF's calculation)due to introduction of GST,and by the way the figures are forwarded by IMF so i consider it worthy.

 

[rajusri]

9.1%? That is cool. Well done Srilanka.

On the face of it, China grew by 10.3% last year, comfortably outpacing India's estimate of 8.6%. But the IMF's latest World Economic Outlook released earlier this week says that India grew by 10.4% in 2010. How can that be? Here's how the acclaimed journal crunches the numbers to arrive at the same conclusion. India typically reports its GDP "at factor cost", meaning it adds up all the income earned in the course of producing the country's goods and services. Other countries, including China, typically report their GDP "by expenditure", i.e. by adding up all the spending (including taxes) on domestically produced goodies.

So, says The Economist in a blog post, you have to factor in a couple of things into the Indian GDP: taxes and subsidies. A sales tax adds to the amount you have to spend on a good. A subsidy has the opposite effect. If these taxes and subsidies remained steady as a percentage of output, they would not affect the growth rate of GDP, even if they do affect its level.

In India, net indirect taxes rose from 7.5% of output in 2009 to 9.2% in 2010, boosting the growth rate of GDP by expenditure for that year. So if New Delhi adopts the same metric as other countries to measure its GDP, i.e., by expenditure, it lifts India's growth to 10.36% in 2010. "That's fully 0.06 percentage points faster than China. Jai Hind!" says The Economist.

Not everyone buys into the conclusion. "Brilliant. So all India has to do is increase indirect taxes every year by 1000% and her GDP will go to the moon," one reader wrote in snarkily. Another maintained that exchange rate is a more important factor than taxes, pointing out that the IMF estimates growth rates by converting the GDP of countries in local currencies to dollar at market exchange. While India's currency appreciated 6.4% in 2010, from Rs 48.85 per dollar in 2009 to Rs 45.93 in 2010, China's Renminbi appreciated only 0.9%, from 6.84 per dollar in 2009 to 6.77 in 2010. So India's GDP got a push that was higher than China's.


Did India grow faster than China in 2010? - The Times of India

So China and India has different methods of calculating GDP. IMF as done it in similar way for every country. so more dependable to compare.

10.4% is really outstanding.

 

[Abhishek_]

good to see another south asian country picking up the pace...congrats sri lankans

 

[Swati Shukla]

congrats lanka... wish u well for the future.

 

[MM_Haider]

well thats HUGE... proven that economy can only flourish if law and order situation is good in the country.. nice bounce back after finishing tamil tiger terrorism in the country..