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

Cambodia’s economic growth to remain strong in 2017 & 2018

Apparel/Garments | On 14th Dec 2017

Cambodia’s economic growth to remain strong in 2017 & 2018

Cambodia’s economy is expected to grow at 6.9 per cent and 6.8 per...

2 garment factories to be set up in Jordan’s Arjan, Souf

Apparel/Garments | On 14th Dec 2017

2 garment factories to be set up in Jordan’s Arjan, Souf

Jordanian Prime Minister Hani Mulki recently laid the foundation...

BRC welcomes ‘breakthrough’ on Brexit talks

Apparel/Garments | On 14th Dec 2017

BRC welcomes ‘breakthrough’ on Brexit talks

The British Retail Consortium (BRC) has welcomed the recent...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

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

Ashok Desai
Bombay Textile Research Association

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search