GDP boost via new method of cal­cu­la­tion

Kathimerini English - - Front Page - LEONIDAS STER­GIOU

The new method­ol­ogy Euro­stat is to adopt from Oc­to­ber will see Greek gross do­mes­tic prod­uct boosted by 3 per­cent­age points for this year, while re­duc­ing the ra­tio of debt to GDP by 4.4 per­cent.

The Euro­pean Sys­tem of Ac­counts (ESA 2010) will re­place the ex­ist­ing ESA 95. The next dead­line for the sub­mis­sion of data by the Hel­lenic Sta­tis­ti­cal Au­thor­ity will be in Septem­ber and it will use this new sys­tem. Where the new sys­tem is dif­fer­ent is that it takes into ac­count de­fense ex­pen­di­ture, in­vest­ment in re­search and de­vel­op­ment, and the ex­port of goods for fur­ther pro­cess­ing. Greece will ben­e­fit as it has a large de­fense bill.

The new method, for ex­am­ple, would have seen re­ces­sion in 2013 shrink from 4 per­cent to just 0.3 per­cent, in­clud­ing the im­pact of the de­fla­tion, and turn the small GDP in­crease of 0.6 per­cent pro­jected for this year to a ro­bust 3.6 per­cent ex­pan­sion.

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