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

APTMA decries duties on cotton imports in Pakistan

Textiles | On 17th Jul 2018

APTMA decries duties on cotton imports in Pakistan

The All Pakistan Textile Mills Association has termed the...

Luis Quijano

Textiles | On 17th Jul 2018

US varsity student cultivates bacterial cellulose in lab

Luis Quijano, a student at the Liberty University in Lynchburg,...

SAARC Development Fund plans cross-border e-comm platform

Apparel/Garments | On 17th Jul 2018

SAARC Development Fund plans cross-border e-comm platform

SAARC Development Fund (SDF), the cross-border umbrella financing...

Interviews View All

Md Hanifur Rahman
Aman Group

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

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

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

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...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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


July 2018

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

news category


Related Categories:

Advanced Search