Bangladesh keeps outrunning India in per capita GDP race

[Destranator]

Again you cannot give any reliable data to back up your claims.

I just have and so that makes my claim more credible.

While I have my view on this, I am open to look at it again with solid data that may show otherwise.

You wanting to stop the conversation now just shows you made a claim and simply have nothing credible to back it up with.

There is a whole dedicated sticky thread on dodginess of BBS data with plenty of holes identified by experts. I am not going to relitigate what is already well established in economic circles.

For example, there is confession from insider of calculating backwards from pre-determined GDP figures.

GDP growth figures often do not align with Industrial growth and investment figures.
BBS never provides full breakdown of the field data collected which is the basis of noimial GDP calculations.

Now if you want actual step by step breakdown of where manipulation has occurred in BBS calculation sheets, this can only be accessed by summoning those by court order. I cannot give it to you.

Feel free to visit the thread and continue the discussion there.

 

[Shotgunner51]

Bangladesh is forecast to remain ahead of India

Good news!

 

[Indos]

Good news!

I hope you provide some analysis as usual

Any way, is inflation calculated in nominal GDP ?

 

[UKBengali]

I also dont think inflation is a factor in calculating nominal GDP (current price), but it is indeed reflected in PPP GDP as PPP is showing real purchasing power.

There are actually 2 types of nominal GDP which are current price and constant price where what is stated by IMF is current price.

Nominal GDP current does take inflation into account( real gdp growth + inflation) but constant does not.

Yes, PPP strips out exchange rates and price differences between countries and looks at real purchasing power.

 

[Indos]

Nominal GDP current does take inflation into account but constant does not.

Yes, PPP strips out exchange rates and price differences between countries and looks at real purchasing power.

Well, actually it is the reverse.

Just use Google recently


Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn't strip out inflation or the pace of rising prices, which can inflate the growth figure.

 

[Destranator]

Nominal GDP current does take inflation into account( real gdp growth + inflation) but constant does not.

Yes, PPP strips out exchange rates and price differences between countries and looks at real purchasing power.

This is correct.

 

[Shotgunner51]

I hope you provide some analysis as usual

Any way, is inflation calculated in nominal GDP ?

Why me? I'm not an economist bro! LOL
But yes, Nominal GDP Growth Rate includes inflation, because Nominal GDP is simply PC+FI+CI+G+NX at nominal values for a specific period of time (1 year, 1Q, etc). The measure discounting inflation is called Real GDP Growth Rate.

 

[UKBengali]

Well, actually it is the reverse.

Just use Google recently


Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn't strip out inflation or the pace of rising prices, which can inflate the growth figure.

I think we both misunderstood each other here.

Say you want to work out the nominal GDP of a country after 1 year with 10% real growth and 5% inflation then the per capita would rise 15%(10%+ 5%).

So even though the nominal has increased 15%, the actual real wealth of the country increased only 10%.

So in this sense, even though nominal includes the inflation rate, it is not the actual reflection of real gdp growth.

Hope this clarifies it.

 

[Destranator]

Well, actually it is the reverse.

Just use Google recently


Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn't strip out inflation or the pace of rising prices, which can inflate the growth figure.

I don't think anyone is disagreeing with that. When a stats agency honestly calculates nominal GDP, they use collected industrial production data at current prices which by default includes for inflation. No seperate calculations are required in relation to inflation.

When you calculate real GDP growth, you adjust the nominal growth to negate the impact of inflation.

When you calculate GDP in PPP terms, you adjust for exchange rate and cost of living.

 

[Indos]

Why me? I'm not an economist bro! LOL
But yes, Nominal GDP Growth Rate includes inflation. The measure discounting inflation is called Real GDP Growth Rate.

I though you are banker or some one working as Chief investment officer in insurance company

 

[Shotgunner51]

I though you are banker or some one working as Chief investment officer in insurance company

Good memory bro, yes i-banking before, now PE fund management.

 

[Indos]

Good memory bro, yes i-banking before, now PE fund management.

Just curious, does Fund management company needs some kind of media intelligence service to tract companies and industries where they put their investment in ? Maybe not intended to the analyst but more into the management like CEO so they can have some grabs of what is going on

 

[Shotgunner51]

Just curious, does Fund management company needs some kind of media intelligence service to tract companies and industries where they put their investment in ? Maybe not intended to the analyst but more into the management like CEO so they can have some grabs of what is going on

Yes we do subscribe to a variety of 3rd party data providers and that helps our in-house analyst do the work. We also hire our own "field agents", usually called principals or VP (Venture Partners) in our industry, they do the legwork and act as eyes and ears for GP (General Partners). Last but not least, GPs all have cultivated their own human network of intelligence for years, or otherwise they wouldn't come to this position.

 

[Indos]

Yes we do subscribe to a variety of 3rd party data providers and that helps our in-house analyst do the work. We also hire our own "field agents", usually called principals or VP (Venture Partners) in our industry, they do the legwork and act as eyes and ears for GP (General Partners). Last but not least, GPs all have cultivated their own human network of intelligence for years, or otherwise they wouldn't come to this position.

Yup, I know investment analyst/officer/Chief officer must have extensive knowledge on many industries already. As people working in that business, you must have many experience when you see profitable companies turn into loss several years later due to many reasons ( their competitor / industry / regulation / ambitious investment etc). Something that we can possibly see/predict if we understand the situation in day to day basis as some important information might be missed if we dont follow the related news in daily basis.

Do they buy service from media monitoring company in a particular foreign county like for example Indonesia, for following news related to the companies ?

I mean for Fund Manager in China buying some stock in Indonesia stock market or equity in Indonesian private firm/company without having office in Jakarta poses some risk. As information is more circulated in Indonesian language than English, so it will be difficult to track the company, industry, regulation, and their competitors information and their move while your analyst are all Chinese working in China who cannot read Indonesian language.

PE ratio of Indonesian stock market is still very low, much much lower than in Indian stock market. I think Indonesia will be very interesting for any fund manager, more over the macro economy is also good that can be reflected by several variables like relatively strong and stable Rupiah, low inflation, low Sentral Bank interest rate and so on.

Moreover PE fund manager I believe needs more information than usual Fund manager who concentrate on stock market

I can provide such service as I have the company for that special service if you are interested.

 

[Shotgunner51]

Yup, I know investment analyst/officer/Chief officer must have extensive knowledge on many industries already. As people working in that business, you must have many experience when you see profitable companies turn into loss several years later due to many reasons ( their competitor / industry / regulation / ambitious investment etc). Something that we can possibly see/predict if we understand the situation in day to day basis as some important information might be missed if we dont follow the related news in daily basis.

Do they buy service from media monitoring company in a particular foreign county like for example Indonesia, for following news related to the companies ?

I mean for Fund Manager in China buying some stock in Indonesia stock market or equity in Indonesian private firm/company without having office in Jakarta poses some risk. As information is more circulated in Indonesian language than English, so it will be difficult to track the company, industry, regulation, and their competitors information and their move while your analyst are all Chinese working in China who cannot read Indonesian language.

PE ratio of Indonesian stock market is still very low, much much lower than in Indian stock market. I think Indonesia will be very interesting for any fund manager, more over the macro economy is also good that can be reflected by several variables like relatively strong and stable Rupiah, low inflation, low Sentral Bank interest rate and so on.

Moreover PE fund manager I believe needs more information than usual Fund manager who concentrate on stock market

I can provide such service as I have the company for that special service if you are interested.

Oh no bro that's a misunderstanding! We are PE, Private Equities, we buy non-public assets. Typically we invest money into a private company, and sell (we call "exit") our shares at IPO, or we may sell to other buyers public or private if IPO is not achieved (another way of exit). We help invested companies grow, we may re-structure them as we see fit, get them out of trouble, M&A, fill them with missing puzzle, we do anything while retaining a fair degree of control throughout until eventually we cash out.

Of course we have to know the stock market very well, cos either that's where our invested companies get listed (we sell shares in the market and cash out), or that's we find buyers to buy assets on our hand. But we do not buy any public shares, that's not our business.

Yes we use data providers, as well as lawyers, auditors, evaluators, head hunters, "consulting firm" ... the usuals in our business. Good to know you sell data, will check with you again if we got deals in Indonesia, stay in touch bro!