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

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search