When will China embrace SNA2008?
And what's the impact of SNA2008 on current GDP number?
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[SIZE=5]System of National Accounts 2008 (SNA08) - Main Changes[/SIZE]
The changes in the international standards which have the most significant impact on the level of GDP relate to the delineation of investments.
According to SNA 2008, expenditures on research and development and weapons systems (warships, submarines, military aircraft, tanks, etc.) are now included in gross fixed capital formation, i.e. investments. This is recognition of the fact that expenditures on these items provide long-lasting services to businesses, non-profit institutions, and the governments who use them. It increases the level of GDP across time, but the impact on GDP growth rates will generally be minor (as can be seen in countries who have already implemented SNA 2008).
Moreover, in situations like this when changes in international standards are actually implemented in the national accounts, countries tend to take advantage of the unique situation and make changes to improve all their compilation methods - therefore also implementing various improvements in sources and estimation methodologies. It is important to underline that the impact of the latter “statistical benchmark revision” could be higher than the impact of the changeover in standards. For example, the Netherlands increased their level of GDP by 7.6 % for 2010, but only 3 percentage points are related to the implementation of the SNA 2008.
[SIZE=3]Australia implemented the SNA08 in 2009, Canada in 2010, Israel, Mexico and the United States in 2013.
All European Union member states as well as Korea, Iceland, Norway, Switzerland and New Zealand implemented the SNA08 in 2014.
Therefore since end of 2014, all OECD countries except Chile, Japan and Turkey, publish GDP estimates according to the SNA08.
Turkey plans to implement SNA08 by the end of 2015, whereas Chile and Japan will adopt the new standards in 2016.
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