Back
9 Sep 2015
China changes GDP data calculation method to improve accuracy - Reuters
FXStreet (Mumbai) - Amid increasing concerns over the reliability of Chinese data especially after the efforts by the authorities to play down China slowdown fears, the China's statistics bureau (NBS) noted on Wednesday it has changed the way quarterly gross domestic product data is calculated, aligning towards international standards and improving the accuracy of Chinese numbers.
As Reuters reports, “The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.”
“The combined economic output of China's provinces has long exceeded that of the national level compiled by the bureau, raising suspicion that some growth-obsessed local officials have cooked the books.”
While NBS quoted, China is calculating GDP based on economic activity of each quarter to make the data "more accurate in measuring the seasonal economic activity and more sensitive in capturing information on short-term fluctuations."
The new methodology - in line with that of major developed countries - will pave the way for China to adopt the International Monetary Fund's Special Data Dissemination Standard (SDDS) in calculating GDP.
As Reuters reports, “The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.”
“The combined economic output of China's provinces has long exceeded that of the national level compiled by the bureau, raising suspicion that some growth-obsessed local officials have cooked the books.”
While NBS quoted, China is calculating GDP based on economic activity of each quarter to make the data "more accurate in measuring the seasonal economic activity and more sensitive in capturing information on short-term fluctuations."
The new methodology - in line with that of major developed countries - will pave the way for China to adopt the International Monetary Fund's Special Data Dissemination Standard (SDDS) in calculating GDP.