Proper metrics are crucial to a full understanding of the economy. Rebasing of gdp means replacing the old base year used for compiling the gdp with a. Nbs rebased the countrys gdp data for the first time in over two decades. Analysis of likely implications on rebasing the gdp of kenya. Nigerias upward revision of gdp should sound alarm on tax. The gdp measures the value of the output of goods and services produced by labour and capital in a country nbs,2014. The implications of the gdp rebasing exercise for uganda. Rebasing rereferencing one and the same for individual series essentially, implied weight is always 1 for single series so all youre doing is expressing same volume series at a different price level 2. The longanticipated rebasing of nigerias gdp series was finally made public on sunday april 6, and the general media reaction has been cautiously celebratory. But in point of fact, rebasing does not change the real it ies of an economy. Most of all, rebasing gdp in this manner is a statistical sleight of hand that will be very difficult to repeat. Construction helps gdp edge higher the royal gazette. Alongside more accurate weightings of the economic contribution of relatively new sectors such as telecoms and entertainment, the project will also encourage.
With the latest rebasing, nigerias gdp has increased to 89. Indeed, recent rebasing of gdp figures has put ghana over the per capita income threshold into middle income country status. The economy of ghana sixty years after independence ernest. The ongoing media debates on nigerias rebased nominal gross domestic product, gdp, offer insight into intrigues of using statistical tools for economic and political considerations. I will answer your question using the african country of ghana that rebased its gdp and encountered criticism in some circles from people who do not understand the idea of gdp rebasing. The european data protection regulation is applicable as of may 25th, 2018 in all. Operational guide on how to do gdp rebasing ecastats. Gdp rebasing will have farreaching implications on socioeconomic policies chabala by masuzyo chakwe on november 8, 2018. Economic growth in the last decade has been high by historical standards. After decades of slow growth, nollywood, one of the largest film industries in the world in terms of number of films produced, is a story of runaway success. Nov 08, 2018 gdp rebasing will have farreaching implications on socioeconomic policies chabala by masuzyo chakwe on november 8, 2018 permanent secretary for development planning and administration chola chabala says zambia is about to undertake a critical activity to rebase its gross domestic product gdp, which will have farreaching implications on. Gdp rebasing will have farreaching implications on socioeconomic policies chabala by masuzyo chakwe on november 8, 2018 permanent secretary for development planning and administration chola chabala says zambia is about to undertake a critical activity to rebase its gross domestic product gdp, which will have farreaching implications on. Are african countries rebasing gdp in 2014 finding. Nigeria becomes africas largest economy get the data.
Okonjoiweala gives reason for gdp rebasing vanguard news. Periodic rebasing of gdp series every seven to 10 years is carried out to account for the changing economic structure and relative prices. Jun 07, 2014 while table 3 shows the nominal gdp figures before and after rebasing, table 4 highlights the percentage change in nominal gdp after rebasing. The last time nigeria rebased her gdp was 24 years ago hence, the gdp data prior to rebasing may have largely underestimated the true size of nigeria economy. Rebasing and revision of gross domestic product gdp of bangladesh. National account aggregates, such as the gross domestic product gdp are normally compiled in the first instance at current or nominal prices, using the data available from different sources, such as censuses and surveys, administrative sources, producers associations and other ad hoc sources and studies. Gross domestic product gdp is an internationally recognised measure of economy size and strength. This note describes, background and rationale of rebasing national accounts estimates, methodologies used and annual and quarterly results.
Are african countries rebasing gdp in 2014 finding evidence. This will open a text editor listing all of the commits that are about to be moved. Gdp is a measure of economic activity that captures the value of goods and. General data protection regulation gdpr official legal. Rana foroohar is global business columnist and an associate editor at the financial times, based in new york. With the rebase command, you can take all the changes that were committed on one branch and replay them on a different branch. Rebasing of the national account series which includes the gdp is the process of replacing an old base year with a new and more recent base year. The financial times recently called the gdp rebasing in nigeria one of the biggest news stories out of africa in 2014. If rebasing were done separately from benchmarking exercise, it would be possible for countries to undertake more frequent rebasing without demanding detailed data or substantial resources. It is importance to have uptodate data so the rebasing is a step in the right direction.
This is especially so when poverty, inequality, youth unemployment, insecurity and gender inequality are still entrenched in the economy. With the latest rebasing, nigeria is now worth n80. It can be seen that while the services sector witnessed a phenomenal increase of 240% using 2010 figures, industry saw a slowdown of 10. The recalculation was a result of changes to the base year, from 2002 to 200910. Oecd glossary of statistical terms rebasing definition. Rebasing may have different meanings in different contexts. Economic and fiscal implications of nigerias rebased gdp. Bermudas economy grew for the third time in four years in 2018 according to annual gross domestic data. The economy of ghana sixty years after independence. However, the last year such was done in nigeria was 1990, almost a quarter of a century ago, a time when the current highgrowth sectors like nollywood, music and telecoms were very marginal.
Gdp remains the key measure of economic activities as it aggregates the market value of final goods and services produced within a country in a specified period of time. The result of the gdp r ebasing ex ercise showed that nigerias gdp was 89 percent larger than previously estimated. Rebasing has several meanings in economics, but im going to assume that youre referring to the kind of largescale upward revisions of gdp estimates that several african countries have announced in recent years. Rebasing and revision of gross domestic product gdp of. Here you can find the official pdf of the regulation eu 2016679 general data protection regulation in the current version of the oj l 119, 04. The rebasing of the economy of kenya has elicited intense debate his is because the country will change her global ranking from a low income to a lowmiddle income country, it is important to note that there are other implications arising from it. Countries regularly rebase their gdp to measure changes in the size and the structure of their economies. This happens when a country that has long neglected the statistical work needed to m. Mar 15, 20 currency rebasing or redenomination, according to bank of zambia article2012, technical guideline on rebasing, involves the diving of a currency unit by a defined denominator and adapting that rebased currency to every amount expressed in both notes and coins. As ghana approaches its 60th birthday, optimism and worries for the future continue to be present in equal measure.
Permanent secretary for development planning and administration chola chabala says zambia is about to undertake a critical activity to rebase its gross domestic product gdp. Rebasing captured the structural changes in the economy especially in banking, telecom and entertainment sector where nigeria recorded dramatic growth in recent years. Over the last few years, the growth in domestic output has been driven mainly by the nonoil sector with real gdp growth of 7. Apr 11, 2019 rana foroohar is global business columnist and an associate editor at the financial times, based in new york.
Rebasing of national income accounts in pakistan state bank of. Rebasing of gross domestic product gdp is there a need. The rebasing of nigerias gdp the change of the base year from 1990 to 2010 and the increase in the number of industries measured for gdp calculation raises the size of the economy of africas most populous nation by 75%1. Highlights the concept of gdp rebasing and its key benefits. The implications of the gdp rebasing exercise for uganda and the eac kigali, 05 december 2014 eca. The size and structure of the nigerian economy following the rebasing excercise. The rise of finance and the fall of american business crown, about why the capital markets no longer support business, was shortlisted for the financial. The explicit impact of rebasing is that it has increased the absolute figures of gdp significantly figure 1. Ivory coast has revised how it calculates its gross domestic product, a move.
You see, real gdp of countries are calculated using a base year. Currency rebasing or redenomination, according to bank of zambia article2012, technical guideline on rebasing, involves the diving of a currency unit by a defined denominator and adapting that rebased currency to every amount expressed in both notes and coins. It is expected to make planning and investment decisions more robust and informed. The structure of sri lankan economy has also been changed significantly. D 2011 defined currency redenomination as the process where a new unit. When combining two or more volume series, rebasing will impact on growth rates assuming current price weights in new. Rebasing is a good move and major development for nigeria. This study analysed how to help the bangladesh bureau of statistics bbs find ways of improving its national accounts statistics.
International journal of social science and economic. Although austin middletons answer is clear and internally correct in its own terms, i suspect that the op was thinking about a different type of gdp rebasing. Udofia cite this article akpan, pius effiong, and lawrence e. This manual for the compilation of gross domestic product gdp was prepared by the. What does it mean to rebase a countrys gdp calculation. For example, if the year 2010 were chosen as the base year, then real gdp for the year 2018 is calculated by taking the quantities of all goods and services purchased in the year 2018 and multiplying them by the year 2010 prices. It employs more than a million people directly or indirectly. May 02, 2014 dr ngozi okonjoiweala, the minister of finance on friday said the essence of rebasing nigerias gross domestic product gdp was to ascertain the actual size of its population. Rebasing of national accounts series means replacing the old base year used for compiling the constant price estimates to a new more recent base year for computing constant price estimates.
Reproduction is permitted with the consent of the editor. Rebasing will lead to a slower rate of real gdp growth which will decrease to 5 % from current rate of 7 %. Prior to the release of the rebased figures, guestimates put post rebasing expansion at about 40%. Opinion 2 rebasing of national income accounts in pakistan. The rebasing excercise has almost doubled gdp per capita, placing it among middleincome countries. The objective of this note is to discuss the rebasing of national income accounts in pakistan, mainly according to 19992000 prices and coverage.
Gross domestic product gdp is a core macroeconomic statistic that measures new zealands economic performance. However, structural transformation has lagged behind. Nigeria and senegal have also rebased their gdp figures, leading to similar. The gdp rebasing exercise involved changing the base year used in the computation of gdp from 1990 to 2010, in the process taking into account new. A number of us are wondering what this all means let us go through. The exercise is expected to lead to a more real ist ic and true est imate of the value and size of economic activities in nigeria.
The implications of the gdp rebasing exercise for uganda and. Revision to gdp methodology gives boost to ivory coasts reported. The impact of entrepreneurship growth in the development. Joy patrick akpan south africa overtakes nigeria as. Extensive discussions were held with the bbs staff in order to identify the areas of weaknesses in the existing procedures. The study finds that current methodologies are seriously constrained by lack of uptodate. Dr ngozi okonjoiweala, the minister of finance on friday said the essence of rebasing nigerias gross domestic product gdp was to. In april 2014, the national bureau of statistics, nigeria, under the government of nigeria. Gdp rebasing will have farreaching implications on socio. With the publicity given to the 20 estimate of niger. What are the benefits of rebasing gross domestic product gdp. With the publicity given to the 20 estimate of nigerias nominal gdp, it is assumed that the rebasing exercise has political undertones. To begin an interactive rebasing session, pass the i option to the git rebase command.
Nigerias upward revision of gdp should sound alarm on taxto. Rebasing an economy is something that ought to pass without fanfare. The fundamental flaw in this practice was exposed prominently in late 2010 when ghana updated the base year in its gross domestic product gdp calculation, pushing up the estimated size of its economy by 69% from one day to the next moss and majerowicz 2012. Nigeria tax base and collection system is poor and unlikely to improve any time soon. Being a paper delivered for finance correspondents and business editors in kaduna. Apr 10, 2014 the nigerian national bureau of statistics completed its gdprebasing exercise last weekend, the result of which shows that nigerias 20 gdp is 89% higher than was previously calculated, and nigeria has overtaken south africa as the largest economy on the continent. Pdf the new rebasing of nigerian gross domestic product gdp by the. Economic commentary on gdp rebasing meristem securities. Ideally speaking, countries will plan on using annual rebasing and chain volume indices as recommended by sna93. Dec, 2019 bermudas gross domestic product increased by 0. Writing by juliette jabkhiro editing by joe bavier and peter graff. In practice, most governments validate gdp calculations by rebasing periodically, in a bid to reflect structural changes in the economy.
Implications of a bigger nigerian economy gives an insight into this project. Overall estimate of economy size increased significantlyedit. The rebasing of gdp statistics is a technical exercise by nbs, although it could have implications for sectoral budget allocations in the medium term, the afdbs dore told obg. It is an important tool that helps a range of users, including policymakers, to understand and manage the new zealand economy. Morten jerven routinely economic statistics inform and support big headlines, but statistics itself seldom makes the news. New series of the gross domestic product gdp estimates pdf. Analysis of likely implications on rebasing the gdp of. The nigerian national bureau of statistics completed its gdprebasing exercise last weekend, the result of which shows that nigerias 20 gdp is 89% higher than was previously calculated, and nigeria has overtaken south africa as the largest economy on the continent. For this example, you would check out the experiment branch. Session outline base year definition, choices main sna recommendations deflator developments 2.
Introduction several key economic and financial institutions and leaders have commended nigerias rise to global economic power as a result of the rebasing of the countrys. For example, the uk and canada rebase their gdp calculations every 5 years how then have we arrived at the situation where nigerias gdp rebasing has been trailed for more than a year now and is generating quite a bit of excitement. Its infrastructure and energy capability however lags far behind south africas. Rebasing of national income accounts in pakistan sajjad zaheer. What nigerias gdp rebasing means to entrepreneurs encomium. Extensive discussions were held with the bbs staff in order to identify the areas of weaknesses in the existing procedures and suggest remedies. This second edition is an update of the sources and. Economic and fiscal implications of nigerias rebased gdp gross domestic product gdp is an internationally recognised measure of economy size and strength. All articles of the gdpr are linked with suitable recitals. The government of uganda released last week, updated figures that raised the countrys gdp by. With people like bill gates investing in gdp data gathering across the continent it will be very difficult for anyone to get away with waiting 24 years and then discovering previously unseen economies in the country. Nigerias gdp rebasing makes the country the largest economy in africa.