Published 23 April 2018
Buckie Got It, St. Kitts and Nevis News Source
By: Media Source
Central Bank announces update on GDP terminology and data release and revision policy
Basseterre, St. Kitts, April 23, 2018 – The St. Kitts-based Eastern Caribbean Bank (ECCB) has announced that in keeping with international standards, it has updated the terminology used to describe economic activity in the Eastern Caribbean Currency Union (ECCU).
“Previously Gross Value Added (GVA) was quoted as the indicator of real change in the economy yet referenced as Gross Domestic Product (GDP). The two aggregates were used inter-changeably. GVA is the difference between Output (eg. Sales) and Intermediate Consumption (items used in the production process). It is calculated at the industry/producer level at basic prices. GDP is calculated at market prices, and is the sum of all Gross Values Added for all resident producers (industries) plus any taxes on products less any subsidies on products that are not already included in the valuation of output,” said a statement posted on the website of the Central Bank.
“Accordingly, with immediate effect, the Bank will report real change in the economy using real Gross Domestic Product (GDP) at market prices, and not Gross Value Added (GVA) at basic prices. The data tables will reflect the updated nomenclature of GVA and GDP at market prices,” it said.
In relation to its GDP Release and Revision Policy, the ECCB pointed out that further to this April 2018 publication of GDP data, the ECCB will release data on the National Accounts (GDP) estimates of the ECCU member countries in June, September and December of each year.
“Following GDP compilation and review exercises for member countries during April and May annually, GDP estimates are finalized with a two-year lag. For example, finalization of the 2016 GDP estimates take place during the 2018 compilation and review exercises, with the use of detailed financial and volume data, obtained from the annual national income survey of establishments and other administrative sources,” said the ECCB
It added: “During the annual compilation and review exercises, estimates for the historical five-year period can be revised if new data are received and updates are made to the projections for three years.”
On the publication of these estimates and projections take place in June annually, it said following the national accounts compilation and review exercises and collation of the ECCU GDP, the annual historical series (country and ECCU) are submitted to the Financial/Permanent Secretary and copied to the Central Statistics Office for their information.
“This ensures that both offices are aware of the same GDP estimates. The letter to the Financial/Permanent Secretary would indicate that the estimates would be used in ECCB publications going forward,” it said.
The ECCB also stated that the three-year GDP estimates/projections are updated periodically during the year using the available data for January to June, and January to September. The data that are needed for the revision of the GDP estimates and projections are sourced from the member countries or from other media such as government websites.
“ECCB monetary data as well as ECCU fiscal data are also utilized. Consequently, revised projections are prepared and disseminated in September, based on the January to June indicators, and in December, based on the January to September indicators. Although the projections include input from ECCU member countries, they will be published as ‘ECCB estimates’.” the Central Bank said.
