Saturday, March 29, 2014
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Adjustment of GDP and Inflation indexes
As had been reported earlier this year the government will attempt to reduce debt artificially by an upward revision of GDP and tampering of the inflation indexes. It is interesting that the governing party had accused the prior government for doing exactly the same thing.
Greek "growth" has been steadily "supported" over the years by tampering the GDP numbers and inflation indexes. GDP growth is GDP difference (of one year vs the next) minus inflation. Thus the government is always mindful of under-reporting inflation through flawed metrics or tampered indexes. The same recipe will be used, once more.
It is estimated that the GDP revision will bring down the debt-to-GDP ratio by 10 percentage units.
According to naftemporiki.gr, general government debt (thats different from total government debt) was 273 bn in 2009 and will be around 300 bn in 2010. This is about 125%. The GDP of 240 bn euro will be revised by +10% to 264 bn thus reducing the debt-to-GDP ratio to 114%.
Clap clap for this shameless act of "beautifying" the economic status.
Adjustment of GDP and Inflation indexes
Greek "growth" has been steadily "supported" over the years by tampering the GDP numbers and inflation indexes. GDP growth is GDP difference (of one year vs the next) minus inflation. Thus the government is always mindful of under-reporting inflation through flawed metrics or tampered indexes. The same recipe will be used, once more.
It is estimated that the GDP revision will bring down the debt-to-GDP ratio by 10 percentage units.
According to naftemporiki.gr, general government debt (thats different from total government debt) was 273 bn in 2009 and will be around 300 bn in 2010. This is about 125%. The GDP of 240 bn euro will be revised by +10% to 264 bn thus reducing the debt-to-GDP ratio to 114%.
Clap clap for this shameless act of "beautifying" the economic status.