1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT

WildBear

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http://www.ft.lk/2013/06/24/1q-gdp-growth-slows-but-still-amongst-worlds-highest/

kukumarx

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I often wondered why at times when things were getting more and more difficult for most people, the country still showed robust GDP growth.(like now) I often thought that if GDP grew, people should be better off. The statistic is commonly interpreted that way.

How wrong I was.

Wikipedia gives the following formula for the calculation of GDP

GDP = private consumption + gross investment + government spending + (exports − imports),

Source: http://en.wikipedia.org/wiki/Gross_domestic_product

From this formula one can see that in Sri Lanka GDP growth currently is coming mainly from govt infrastructure spending and government spending. (mostly based on borrowed funds)

Private consumption (what you and I experience) could probably even be shrinking and we would still show GDP growth.

Thus we should look at GDP growth numbers and try to rank countries we should have this in mind.

rainmaker

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@Kukumarx are you on the skyscraper city forum?

Slstock

Slstock

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Some thoughts

http://forum.srilankaequity.com/t27324-adbs-2013-projection-of-sl-gdp-at-68-lower-that-cb-target-of-75#159450

kukumarx wrote:I often wondered why at times when things were getting more and more difficult for most people, the country still showed robust GDP growth.(like now) I often thought that if GDP grew, people should be better off. The statistic is commonly interpreted that way.

How wrong I was.

Wikipedia gives the following formula for the calculation of GDP

GDP = private consumption + gross investment + government spending + (exports − imports),

Source: http://en.wikipedia.org/wiki/Gross_domestic_product

From this formula one can see that in Sri Lanka GDP growth currently is coming mainly from govt infrastructure spending and government spending. (mostly based on borrowed funds)

Private consumption (what you and I experience) could probably even be shrinking and we would still show GDP growth.

Thus we should look at GDP growth numbers and try to rank countries we should have this in mind.

Backstage

Backstage

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If you take defense spending out, its another GDPpicture right ?

D.G.Dayaratne

D.G.Dayaratne

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Daily FT report is pure misuse of statistics

GDP growth is relative to present level of development

Hoe can you compare Singapore .2% growth with Sri Lanka 6.6% growth

There was a famous saying about Statistics
"The Lamp post is for illumination But drunken people use it for some other purpose( sleeping)"

Daily FT and govt use statistics as in case of "DOPE KARAYA"

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1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT

1 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Mon Jun 24, 2013 8:37 pm

WildBear

2 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Mon Jun 24, 2013 11:29 pm

kukumarx

3 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Mon Jun 24, 2013 11:33 pm

rainmaker

4 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Tue Jun 25, 2013 4:08 am

Slstock

5 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Tue Jun 25, 2013 11:15 am

Backstage

6 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT Tue Jun 25, 2013 2:06 pm

D.G.Dayaratne

7 Re: 1Q GDP growth slows but still amongst world’s highest-DNH financials on Daily FT

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