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Unified accounting for quality GDP data

China Daily | Updated: 2019-12-31 00:00
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Editor's note: According to the National Bureau of Statistics, a unified method is ready and will be used to calculate the gross domestic product of different regions in 2019. 21st Century Business Herald comments:

This reform will significantly improve the quality of statistical data which will in turn promote the country's development.

The tiered GDP accounting system being followed now was introduced in 1985. Under it, the NBS calculated national GDP and provincial-level departments calculated GDP in their regions.

As China's economy has grown to become the world's second largest, its economic data are now of great consequence to the international market.

But the quality of data is sometimes suspect given that the provincial GDP is sometimes exaggerated.

When China enters a stage of high-quality development, if its data do not objectively reflect the scale, structure and speed of the economy both at the national and provincial level, it will be difficult to correctly analyze the macroeconomic situation.

Unless backed by high-quality data, it will be difficult to ensure the country's high-quality economic development.

The exaggeration of local GDP is to a large extent the result of the GDP-centered performance assessment mechanism.

To produce better-looking GDP figures, local officials used to sometimes intervene in the GDP calculation work. Sometimes even market players overstate or understate performance data for their own benefits.

It is for these reasons that the authorities have advanced a unified national economic data accounting system.

According to a reform program worked out in June 2017, the NBS will oversee local GDP calculation work. Also, those violating the process will be held accountable.

Given that scientific collection of statistical data can serve high-quality development, the country should vigorously develop the data sector in this era of big data.

 

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