Muhith: BD's GDP terribly underestimated, data to be updated in 1 yr

[CaPtAiN_pLaNeT]

Muhith: GDP terribly underestimated
Statistical data to be revised within a year, he says

UNBconnect... - Muhith: GDP terribly underestimated

Reported on: May 26, 2012 18:54 PM

Dhaka, May 26 (UNB) – Finance Minister AMA Muhith on Saturday said the country’s gross domestic product (GDP) is terribly underestimated despite having a better statistical system compared to many countries in the world.

“Our GDP is not simply underestimated, it’s terribly underestimated,” he told a function at the auditorium of Bangladesh Bureau of Statistics (BBS) in the city.

He said everything related to data calculation would have to be rethought for the betterment of the country and its economy. “We’re in a process to introduce a new statistical system after nearly 15 years…hope, we’ll be able to revise all the statistical data within a year. It’ll be good for the economy,” Muhith said.

The BBS and Economic Research Group (ERG) jointly arranged the function to distribute certificates among the participants of a month-long course, titled ‘National Income Accounting: Theory and Practice’.

Planning Minister AK Khandker spoke as a special guest at the programme held with secretary to Statistics and Informatics Division of Planning Ministry Riti Ibrahim in the chair.

BBS director general M Shahjahan Ali Mollah and course coordinator and Research Director of Economic Research Group Dr Sajjad Zohir also spoke on the occasion.

Speaking as the chief guest, Muhith said statistics are very vital which change constantly. “We need to have proper knowledge about technology and changed system to adjust ourselves with that.”

He emphasised uniformity of standards among all the data calculators to have better outcomes.

Planning Minister AK Khandker said proper training is a must for all to adjust with the latest technology to calculate data accurately as the national policies are formulated based on various statistics.

He appreciated the BBS and other officials who took part in the training programme for their interest and sincerity in the result-oriented training courses. “Such training will help them (data analysts) come up with accurate information.”

A total of 20 officials from the BBS, Bangladesh Bank and Center for Policy Dialogue (CPD) and other government organisations took part in the month-long training course.

The Finance Minister handed over certificates to the participants at the function.

Earlier, team leaders of four groups made presentations on their selected topics.

 

[boltu]

I like one thing about our finance minister is that he always likes to be optimistic even at the worst moments.When the rebasing will be done then our real per capita GDP will increase for sure,now wouldn't it be problem for BD's LDC status??

 

[CaPtAiN_pLaNeT]

I like one thing about our finance minister is that he always likes to be optimistic even at the worst moments.When the rebasing will be done then our real per capita GDP will increase for sure,now wouldn't it be problem for BD's LDC status??

Not for now but in 2015 for sure when the next meeting will held to decide which are the countries will get preferential benefit. So bd should not upgrade it until that time. I believe upgrading decision will be delayed by 2 more year then the projected time of 1 year. After all project implementation delay is a common phenomena in Bangladesh .

 

[CaPtAiN_pLaNeT]

But there are pressure in Bangladesh from many LDC countries, world bank, imf etc to graduate from LDC. Definitely Pakistan and specially India wants it also.

 

[boltu]

Then this time i'll support the delay,but i have a feeling that BD won't get any LDC status in next meeting.I think there would be an opportunity to revise the economy upto 2010 if they do it after 2015 as they'll get enough time to collect all the data

 

[Avisheik]

step 1: Keep insisting that BD is a LDC
step 2: Start a fake insurgency
step 3: Blame te lack of development on the "insurgency"
step 4: Get more money from imf, US etc. due to our LDC status

 

[eastwatch]

1995-based indicators to count GDP is out of line that shows a lower GDP. However, BD keeps on basing that year only to keep on being an LDC. LDCs get many facilities from the western countries and are supported by them in many fields of development. This is why this delay is all about. If a new GDP is counted from a new base year of 2005 our GDP will show a much higher figure.

 

[boltu]

@Avisheik bro
But step 2 will discourage foreign investments !!

 

[kobiraaz]

no need to start fake insurgency. Political turmoil Does the job. Blame it....

 

[CaPtAiN_pLaNeT]

1995-based indicators to count GDP is out of line that shows a lower GDP. However, BD keeps on basing that year only to keep on being an LDC. LDCs get many facilities from the western countries and are supported by them in many fields of development. This is why this delay is all about. If a new GDP is counted from a new base year of 2005 our GDP will show a much higher figure.

Bro can you tell me what could be the possible gdp with 2005 base year?

 

[Avisheik]

@Avisheik bro
But step 2 will discourage foreign investments !!

Insurgency in the sundarbans. Nobody invest in sundarbans anyway

no need to start fake insurgency. Political turmoil Does the job. Blame it....

Fake insurgency, nobody gets hurt.

Political turmoil, everybody gets hurt

 

[boltu]

Insurgency in the sundarbans. Nobody invest in sundarbans anyway

Then Sundarbans already have handful numbers of pirates,now i think we don't need to start any fake one just name the pirates as insurgents

 

[eastwatch]

Bro can you tell me what could be the possible gdp with 2005 base year?

I just do not know how much will be our GDP if it is based on 2005. Iajdani may help us, I have borrowed his words only. In 1995 base line many sectors and sub-sectors are not included this is what I know. For example, our women folk in villages are quite busy with cottage industries, rasing goats/cows, fish farming, small-scale poultry, embroidery etc. These are not included in the old method of calculation.

Usually govts also include the underground economy to calculate GDP in countries with well-developed accounting methods. But, BD does not include it. There may be others that I do not know. So, who knows, our real GDP may be 20% more than what is declared officially.

 

[CaPtAiN_pLaNeT]

Muhith finds flaws in GDP calculation

Muhith finds flaws in GDP calculation

FE Report

Finance minister AMA Muhith Saturday claimed that the gross domestic product (GDP) of Bangladesh was "terribly underestimated".

"The base-year is 15 years' old. Many products are kept away from the lists of the GDP calculation. It has to be updated," he said.

"The Bangladesh Bureau of Statistics (BBS) is trying to update the base year. I hope the new accounting system will start from next year. It has become very important now," said Mr. Muhith at a

certificate awarding ceremony held at BBS.

The BBS organised the ceremony at the end of a month-long course on "National Income Accounting: Theory and Practices".

AMA Muhith said: "I have visited one-fourth of the countries in the world. Once Bangladesh's national accounting system was even better than China. But now China has gone ahead."

Although Bangladesh's statistical system is still better than African countries, the present system will have to be upgraded, he said.

The finance minister said accounting system of all the government agencies should be uniform with a standard method of calculation.

"The government agencies should not have varying statistics and data. Such difference creates problems in the planning process. Uniformity of standard is very important," he said.

Muhith differed on GDP calculation system considering the incremental capital output ratio (ICOR).

"Rather the ICOR could be used to verify the GDP data based on the survey," he added.

Muhith said the BBS's latest population census is correct saying "in its census it has found nearly 148 million population in the country. Another 10 million live abroad. So their census is correct."

"Once there were differences between the United Nation Population Fund (UNFPA) and BBS's statistics on Bangladesh's population census. Now it has been removed. UNFPA will accept the BBS statistics from now on," he said.

The finance minister was critical about Bangladesh's milk production. "We have offered tax benefits to the dairy farms. But the milk production over the years has remained almost the same. It is not increasing although the country has short supply of milk."

Planning Minister AK Khandker said the government is trying to introduce the latest technology-based education in all institutions. It will help the country go forward.

Statistical Division secretary Riti Ibrahim, Director General of the BBS Shahjahan Ali Mollah, Research Director Sajjad Zahir and others also spoke at the function.

 

[PlanetSoldier]

no need to start fake insurgency. Political turmoil Does the job. Blame it....

bal/bnp politics are big de facto live insurgencies in BD .