satyam1729 Posted May 21, 2010 Posted May 21, 2010 The usual methodology to post a higher economic growth for the current year is to reduce the growth of the previous year. In other words, reduce the base to get a higher growth for the current year. The growth number for 2007-08 was provisionally reported to be 5.8 per cent. Pakistan, on the other hand, posted a positive growth of 2.0 per cent and outshined the strongest economies of the region in 2008-09.:giggle: The 5.8 per cent provisional growth of 2007-08 was drastically revised downward to 4.1 per cent and as such the base was reduced to arrive at a higher number of 2.0 per cent for 2008-09. Some methodology for the calculation of value-added for some sectors was also changed without bringing to the notice of the National Accounts Committee. The same process has been repeated according to the newspaper story for the year 2009-10. (hey! We like to repeat ourselves - repeated lying, begging, warring) The Federal Bureau of Statistics (FBS) has revised the last year's (2008-09) growth of 2.0 per cent to 1.1 per cent and that too, by further trimming the growth of 2007-08 from 4.1 per cent to 3.7 per cent. Since the base of 2008-09 was trimmed to 1.1 per cent, the growth for the current fiscal year (2009-10) has (magically) risen to 4.1 per cent. Not only the growth of last year was reduced but also growth of some components of the GDP was outlandishly jacked up in 2009-10. The growth of the construction sector was pushed up to an unbelievable level of 15 per cent. Only a lunatic would expect the construction sector to grow by 15 per cent in 2009-10. The production of cement adjusted for exports and that of iron and steel has been used as a proxy for calculating growth in value-added in construction. :giggle::hysterical: Voila! There you have it. Phenomenal GDP growth in the land of the pure. Wait till next year when the growth will be in double digits (and thereby reducing the last three years' growth to zero).
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