3 ms·

Newbie question: >> India, long one of the fastest growing economies in the world, ... The number given in support of the above statement is the annual GDP gr

by alok-g 9y ago

Newbie question: >> India, long one of the fastest growing economies in the world, ... The number given in support of the above statement is the annual GDP growth rate. However, as I understand, this is before adjustment for inflation, which also is high in India. I have been unable to find the numbers for inflation-adjusted "real" GDP [1] for India and other countries. Is India still the fastest growing economy when the real GDP is considered? [1] https://en.wikipedia.org/wiki/Real_gross_domestic_product https://en.wikipedia.org/wiki/Real_gross_domestic_product

em500 9y ago
Your understanding is incorrect: quoted growth numbers are real/constant-currency/inflation-adjusted, as per default in almost all economic reporting. Global numbers can be found here: http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG
- alok-g 9y ago
  This is great. Where can I read more about the terms (newbie here, looking for guidance) like constant-currency, or more broadly, the methodology used in measuring these numbers. Can I also see similar charts for inflation somewhere?
  - em500 9y ago
    Wikipedia has most of the basics covered: https://en.wikipedia.org/wiki/Gross_domestic_product https://en.wikipedia.org/wiki/Gross_domestic_product. Global inflation numbers are also in World bank data: http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG. "official" data sources and aggregators (national statistics bureaus), IMF, World Bank, FRED can be heavy on economics jargon. Trading economics is probably a bit friendlier for the layperson.
ahiknsr 9y ago
" However, as I understand, this is before adjustment for inflation, which also is high in India" . No , India’s Consumer Price Inflation Falls to Record Low of 2.18 Percent ( https://www.bloomberg.com/news/articles/2017-06-12/india-s-may-consumer-prices-fall-to-record-low-of-2-18-percent https://www.bloomberg.com/news/articles/2017-06-12/india-s-m...)
- alok-g 9y ago
  If inflation calculation used for GDP inflation adjustment is based on CPI, there is a problem already. GDP is measured using all products and services (perhaps with some exceptions), while CPI is measured using a very small subset. For the purposes of calculating inflation-adjusted GDP, inflation should be calculated using all the products and services that count towards the GDP. In the meanwhile, the overall inflation as felt by the residents (in the cities where I am exposed to) is much higher than ~2% quoted, nearly around or even higher than the GDP growth rates mentioned. Again, being a newbie, I would like to hear back if my understanding is incorrect.

by alok-g 9y ago

em500 9y ago

Your understanding is incorrect: quoted growth numbers are real/constant-currency/inflation-adjusted, as per default in almost all economic reporting. Global numbers can be found here: http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

alok-g 9y ago
This is great. Where can I read more about the terms (newbie here, looking for guidance) like constant-currency, or more broadly, the methodology used in measuring these numbers. Can I also see similar charts for inflation somewhere?
- em500 9y ago
  Wikipedia has most of the basics covered: https://en.wikipedia.org/wiki/Gross_domestic_product https://en.wikipedia.org/wiki/Gross_domestic_product. Global inflation numbers are also in World bank data: http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG. "official" data sources and aggregators (national statistics bureaus), IMF, World Bank, FRED can be heavy on economics jargon. Trading economics is probably a bit friendlier for the layperson.

ahiknsr 9y ago

" However, as I understand, this is before adjustment for inflation, which also is high in India" . No , India’s Consumer Price Inflation Falls to Record Low of 2.18 Percent ( https://www.bloomberg.com/news/articles/2017-06-12/india-s-may-consumer-prices-fall-to-record-low-of-2-18-percent https://www.bloomberg.com/news/articles/2017-06-12/india-s-m...)

alok-g 9y ago
If inflation calculation used for GDP inflation adjustment is based on CPI, there is a problem already. GDP is measured using all products and services (perhaps with some exceptions), while CPI is measured using a very small subset. For the purposes of calculating inflation-adjusted GDP, inflation should be calculated using all the products and services that count towards the GDP. In the meanwhile, the overall inflation as felt by the residents (in the cities where I am exposed to) is much higher than ~2% quoted, nearly around or even higher than the GDP growth rates mentioned. Again, being a newbie, I would like to hear back if my understanding is incorrect.