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BBS finalises 2005-06 as new GDP base year
Published : Wednesday, 28 November 2012
Financial Express :: Financial Newspaper of Bangladesh
Jasim Uddin Haroon
Bangladesh has finalised a new GDP (gross domestic product) base year -- 2005-06 -- to replace the 17-year-old baseline to have a more accurate reading of the country's economic activities and structure.
This base year will also follow the revised GDP accounting methods in line with international standards, the Bangladesh Bureau of Statistics (BBS) officials said.
The country's current methods are in conformity with the 1993 version of the United Nations System of National Accounts, which was revised in 2008.
The change in the GDP base year is considered very important, as new products and services will be reflected in it.
The BBS officials said the new base year will be used in the next GDP measurement for the year 2012-13.
"We'll use the new base year in next March, in preparing the provisional figures of the real GDP of the current fiscal year (2012-13)," said Satiya Ranjan Mondol, director of the BBS National Accounting Wing.
Economists said the government has taken the right step, as the GDP is being measured by using the very old base year that raises questions on whether it is realistic or not.
Khandker Golam Moazzem, senior research fellow of the Centre for Policy Dialogue (CPD), said: "It is a step in the right direction, though it is too late."
The change was necessary, as data on services and some components in industry was outdated. The closer the base year to the current year, the better the results, he also said.
The weight on ready-made garment was very low, and it should be revised in the new base year, he added.
They also said the introduction of the new base year will increase the size of GDP, leading to rise in the country's per capita income.
"We've already finalised the new base year and other components to be revised under the latest methods of the GDP," Abul Kalam Azad, a joint director of BBS, told the FE Monday.
A consultant to the International Monetary Fund (IMF) assisted the local team to finalise it.
Mr Azad said the bureau will organise a meeting with the technical committee in the first week of December to approve it.
Earlier, the BBS formed a technical committee, headed by renowned economist Professor Wahiuddin Mahmud.
Finance Minister A M A Muhith recently expressed his doubt over the accuracy of the data being provided by the BBS, as it is using an outdated base year for calculating different macro-economic indicators.
In Bangladesh, the GDP base year is generally revised after every 10 years. In India, it is revised after every five years to improve data accuracy.
Published : Wednesday, 28 November 2012
Financial Express :: Financial Newspaper of Bangladesh
Jasim Uddin Haroon
Bangladesh has finalised a new GDP (gross domestic product) base year -- 2005-06 -- to replace the 17-year-old baseline to have a more accurate reading of the country's economic activities and structure.
This base year will also follow the revised GDP accounting methods in line with international standards, the Bangladesh Bureau of Statistics (BBS) officials said.
The country's current methods are in conformity with the 1993 version of the United Nations System of National Accounts, which was revised in 2008.
The change in the GDP base year is considered very important, as new products and services will be reflected in it.
The BBS officials said the new base year will be used in the next GDP measurement for the year 2012-13.
"We'll use the new base year in next March, in preparing the provisional figures of the real GDP of the current fiscal year (2012-13)," said Satiya Ranjan Mondol, director of the BBS National Accounting Wing.
Economists said the government has taken the right step, as the GDP is being measured by using the very old base year that raises questions on whether it is realistic or not.
Khandker Golam Moazzem, senior research fellow of the Centre for Policy Dialogue (CPD), said: "It is a step in the right direction, though it is too late."
The change was necessary, as data on services and some components in industry was outdated. The closer the base year to the current year, the better the results, he also said.
The weight on ready-made garment was very low, and it should be revised in the new base year, he added.
They also said the introduction of the new base year will increase the size of GDP, leading to rise in the country's per capita income.
"We've already finalised the new base year and other components to be revised under the latest methods of the GDP," Abul Kalam Azad, a joint director of BBS, told the FE Monday.
A consultant to the International Monetary Fund (IMF) assisted the local team to finalise it.
Mr Azad said the bureau will organise a meeting with the technical committee in the first week of December to approve it.
Earlier, the BBS formed a technical committee, headed by renowned economist Professor Wahiuddin Mahmud.
Finance Minister A M A Muhith recently expressed his doubt over the accuracy of the data being provided by the BBS, as it is using an outdated base year for calculating different macro-economic indicators.
In Bangladesh, the GDP base year is generally revised after every 10 years. In India, it is revised after every five years to improve data accuracy.
