15.Nov .2019 12:23

GDP will be Calculated by the Updated Methodology from Today – What the Reform Will Cause

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Mr. Gogita Todradze, Executive Director of Geostat will hold presentation of a new methodology of System of National Accounts (SNA 2008). It means that GDP and other macroeconomic indicators will be calculated by the updated methodology.

In 2018, Georgia's GDP amounted to 41.1 billion GEL. According to the new methodology, it can be found that Georgia's real GDP has been more than 41.1 billion in the last year.

The transition to a new methodology involves changes in terms of improving the quality of the data sources, assessing the size of the unobserved economy, and processing administrative data.

Mr. Gogita Todradze, Executive Director of Geostat has declared to BM.GE, that GDP will be increased based on the Updated Methodology. But he cannot name exact amount of growth.

According to Todradze, GDP increased from 3% to 7% in the EU states based on the Updated Methodology, whereas the increase has in 6.6% in Armenia, 3.6% - in Ukraine, while 18.8% - in Moldova.

"These countries [Turkey and Armenia] moved to a new methodology in 2014 and 2015. For example, Armenia 's GDP grew by 6.6%, Ukraine' s 3.6%, Belarus' 0.6%. However, the increase was insignificant in Turkey - 0.1%, while GDP increased by 18.8% in Moldova. You are mainly interested in the difference between old and new methodologies. This is primarily related to the change of indirect valuation of financial intermediation services, "- said Giorgi Todradze.

According to Executive Director of Geostat, the organization will make calculation of previous year’s GDP afresh.