What is Nominal GDP of Pakistan 2019?

[Abdussamad]

It will be a trillion if you include your parallel economy as well. That is same as about Indonesia. I'll leave it you if you think you are at par with Indonesia or not.

No one knows the size of the informal economy on account of it being informal.

 

[B.K.N]

240 billion USD :O !!! IMF data on wikipedia shows it 312 billion USD

Few years ago government said now Pakistan's gdp is 400 billion

 

[Hakikat ve Hikmet]

Nobody knows for real....

According to the Pak public accountants 70% of the transactions are undocumented, untaxed, unregulated etc....

 

[GodToons]

Few years ago government said now Pakistan's gdp is 400 billion

Question is ambiguous!
GDP may be growing in terms of PKR, no one can deny that. Since pakistan is growing with 4%+ in last few year. which means production + value is increasing in the GDP which will increase the GDP in PKR.
Now you guys are discussing the GDP in $ terms, which will factor the conversion rate, every devaluation in the currency will reduce the GDP numbers. this is 'macro economics' and use defined formula.

 

[B.K.N]

Question is ambiguous!
GDP may be growing in terms of PKR, no one can deny that. Since pakistan is growing with 4%+ in last few year. which means production + value is increasing in the GDP which will increase the GDP in PKR.
Now you guys are discussing the GDP in $ terms, which will factor the conversion rate, every devaluation in the currency will reduce the GDP numbers. this is 'macro economics' and use defined formula.

400 billion dollar not rupees

 

[GodToons]

Don't listen to the indian buffoon, countries change their values for dollar in compliance with market changes, it is to support growth. GDP PPP is what's important if we go by Indians logic since Pakistani rupee is valued half the price of Afghani rupee then Afghanistan should be having more progress no? Turkey changed their value of currency in 2000 or 2002 something if remember right, they introduced the lira then. The major factor is import export and to keep the balance, countries are forced to change the value of their currencies. If tomorrow, suddenly 1 USD becomes equal to 280 B Rs, it means our nominal GDP would be 1 USD, but if we are ignoring import/export changes, it wouldn't effect on how we operate in our daily lives or how we live, that is dictated by GDP PPP.

What should be said, you can just google the GDP formula and see how it works. Afghanistani currency may be strong due to good other factor, but their GDP would be still low due to lower level of industry/ agriculture/ services production. statement good on face, low on logic and defined study,

400 billion dollar not rupees

Janab, any devaluation of the currency w.r.t. to base currency will have almost similar effect on the valuation.

Just disconnect it with GDP PKR and GDP $ terms, exchange rate plays a major factor.

 

[Death Professor]

What should be said, you can just google the GDP formula and see how it works. Afghanistani currency may be strong due to good other factor, but their GDP would be still low due to lower level of industry/ agriculture/ services production. statement good on face, low on logic and defined study,

You think nominal matters but in-actuality PPP matters. Market defines your currency rates, if you peg your currency at a lower rate then you have to inject $ to compensate for that, if your imports are more than your exports.

And about Afghan currency, there ain't any good other factor. The issue is these are all fiat currency, your market is what determines should be the rate of your currency( Afghanistan being an anomaly for it's currency being created recently so it's value is high). Here there was extra ordinary stress on nominal, which in reality should matter to the people living inside Pakistan, because when GDP is calculated it is calculated in local currency(which is PPP) then converted into nominal, with whatever rate. Now when rupee was 100 against $, PPP was same as when it was 157 (i am ignoring the 3% growth rate just for the sake of understanding) but the nominal GDP abruptly decreased from 320 B to 280 B. Also it is stated that our growth rate decreased from 5.2% to 3%, now where does it state that we have a negative growth rate. Negative growth rate tells you if the economy is is shrinking or not. GROWTH still mean grow not shrink.

Again I have to summarize it nominal GDP value was just a correction with the new value of Rs. Hope I explained it better this time.

 

[American Pakistani]

why are asking about nominal? Does nominal matters? nope, PPP matters. .

Of course nominal matters not the PPP. Pakistan PPP is higher because we borrow loans and buy stuff. We have no nominal GDP which is providing us $$$.

 

[KhanBaba2]

why are asking about nominal? Does nominal matters? nope, PPP matters. When you devalue your currency so abruptly by a huge margin, you are always going to see sharp changes in GDP value. PPP GDP doesn't change with changing the value of currency, because that is the real GDP. But that doesn't mean that the GDP growth has been negative our gdp growth was 5.4 last year and 3. something this year. So to answer your question it went from 315 B to 280 B something in terms of nominal gdp. Now if somehow PPP GDP of a country decreases then that means over all you have negative growth rate.

Nominal also matters because it determines how much you can import. If you have to slash your import of oil, your transportation suffers and your PPP GDP also suffers.

 

[Nilgiri]

Nominal also matters because it determines how much you can import. If you have to slash your import of oil, your transportation suffers and your PPP GDP also suffers.

Not really. Nominal is just using the exchange rate to apply to a whole valuation in local currency. Basically Pakistan computes its total economic size in PKR....and then PKR/USD exchange rate is used to get it in USD. There is no way a (esp developing) country can actually exchange all its local currency valuation for physical USD to achieve that as a physical potential.

Same as any other country (just degree varies). Problem is that PKR/USD exchange rate is not determined by 100% intersection of the two economies (or these days your economy with the nebulous global economy) but rather just a small subset of goods/services. Basically you are using a small % amount of activity to extrapolate to a whole larger amount, which is why its a flawed estimate. So a flawed estimate simply isn't that relevant compared to more basic liquid constituents.

Forex, market cap are much more useful measures for frontier USD liquidity to use for imports, loan taking potential/capability etc....because these are actually exchanged in pretty frequent basis and/or physically held and accumulated etc....in pretty "direct USD" fashion overall.

In fact it was the rise in Pak market cap (from 60 billion to around 100 billion in cpl years time) that spurred its inclusion into the MSCI EM index....and now they are looking at not including pakistan anymore because of the recent market cap fall (from 100 billion to back to 50 billion).

@VCheng @ziaulislam @zulu @That Guy @Norwegian @RealNapster

 

[Indx-techs]

You have take all factors in account, currency appreciation, inflation and real growth etc..

IMF will release final data in 2020. Such calculations are complex so better not waste your time. Consider 2018 GDP only for now.

 

[GodToons]

You think nominal matters but in-actuality PPP matters. Market defines your currency rates, if you peg your currency at a lower rate then you have to inject $ to compensate for that, if your imports are more than your exports.

And about Afghan currency, there ain't any good other factor. The issue is these are all fiat currency, your market is what determines should be the rate of your currency( Afghanistan being an anomaly for it's currency being created recently so it's value is high). Here there was extra ordinary stress on nominal, which in reality should matter to the people living inside Pakistan, because when GDP is calculated it is calculated in local currency(which is PPP) then converted into nominal, with whatever rate. Now when rupee was 100 against $, PPP was same as when it was 157 (i am ignoring the 3% growth rate just for the sake of understanding) but the nominal GDP abruptly decreased from 320 B to 280 B. Also it is stated that our growth rate decreased from 5.2% to 3%, now where does it state that we have a negative growth rate. Negative growth rate tells you if the economy is is shrinking or not. GROWTH still mean grow not shrink.

Again I have to summarize it nominal GDP value was just a correction with the new value of Rs. Hope I explained it better this time.

You are beating the bush, I have provided same argument in the post. Re PPP, debate is open on which model is better GDP or PPP. With your knowledge, why do not write a white paper and publish it. May be you can win the argument in favor of PPP. If you cannot do that, SHUT UP and follow the structure placed by the economist and accepted globally.