Home / Knowledge / News / Textiles / China alters quarterly GDP calculation method
China alters quarterly GDP calculation method
08
Jul '16
In a step toward aligning with global standards and improving accuracy, China's National Bureau of Statistics (NBS) has altered the way quarterly GDP data are calculated, Xinhua reported.
 
Post alteration, expenditure incurred toward research and development (R&D) that can economically benefit companies will be treated as fixed capital formation instead of the earlier intermediate consumption.
 
After revision, the NBS also released re-calculated GDP figures from 1952 through the first quarter of 2016. For last year, China's GDP increased by 879.8 billion yuan ($131 billion) or 1.3 per cent, but the year-on-year growth rate remained at 6.9 per cent. The increase in GDP was due to continuous increase in R&D spending and the accumulation of R&D investment stock.
 
The upward revision in GDP better reflects the contribution of innovation to economic growth, said Cheng Zilin, head of the NBS department of national accounts.
 
R&D has played an increasingly significant role in China's economic growth in recent years, but the old method of calculating GDP did not reflect this importance, as intermediate consumption only measures value of goods and services that are transformed or entirely used up in the course of production.
 
According to the System of National Accounts 2008 (SNA 2008), an international standard for measuring a country's economic activity, R&D expenditures that yield economic benefit should not be considered "completely used up in the accounting period", and should be recorded as fixed capital formation, which is part of GDP.
 
The SNA 2008 methodology, introduced in 2009, has been adopted by most member countries of the Organization for Economic Cooperation and Development (OECD), including the US, Canada and Australia.
 
Now with China adopting this reform, it has improved the international comparability of its accounting data, said Zilin. (RKS)
 

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 17th Jan 2017

GST rollout from July 1; states to control small taxpayers

The Centre and states have reached a consensus on the issue of dual...

Textiles | On 17th Jan 2017

Reliance Industries net increases 3.6% in Q3FY17

In the three months ended December 31, 2016, India’s biggest private...

Courtesy: Carnegie Fabrics

Textiles | On 17th Jan 2017

Calera Capital acquires majority stake in Carnegie Fabrics

Private equity firm Calera Capital has bought a majority stake in...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search