The latest economic growth numbers for the first quarter of the current fiscal year released on Monday have puzzled analysts who have yet again questioned the controversial methodology of calculating GDP adopted by the Central Statistics Office (CSO) earlier this year.
Data released by CSO on Monday showed that GDP at market prices decelerated to 7% in the June quarter from 7.5% in the March quarter, while another measure of economic growth, GVA (gross value added) at basic prices, showed that the economy quickened to 7.1% in June quarter from 6.1% in the preceding three months, thus sending conflicting signals.
GDP at market prices is estimated by adding net indirect taxes to GVA at basic prices. Net indirect taxes is computed by deducting subsidies from gross indirect taxes on products, including import duties.
Analysts see three closely inter-related problems.
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