{"id":81295,"date":"2021-02-10T15:20:45","date_gmt":"2021-02-10T09:50:45","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=81295"},"modified":"2021-02-11T10:34:30","modified_gmt":"2021-02-11T05:04:30","slug":"impacts-and-importance-of-gdp-revised-estimates","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/impacts-and-importance-of-gdp-revised-estimates\/","title":{"rendered":"Impacts and importance of GDP revised estimates"},"content":{"rendered":"<p><strong>Source &#8211; <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/inverted-v-the-shape-of-indias-gdp-growth-rate-over-the-past-decade-explainspeaking-7179161\/\"><strong>The Indian Express<\/strong><\/a><\/p>\n<p><strong>Syllabus \u2013 GS 3 &#8211; <\/strong>Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment.<\/p>\n<p><strong>Synopsis &#8211; Revised estimates of GDP are released. <\/strong>It would impact the growth prediction and levels of the future National Income.<\/p>\n<p><strong>Introduction<\/strong><\/p>\n<ul>\n<li>Last week all major financial publications were released i.e. economic survey, budget, and 1st bi-monthly monetary policy review.<\/li>\n<li>However, the first revised estimate of GDP growth in 2019-20 was not highlighted.<\/li>\n<li>This revision has not only revised the 2019-20 GDP growth rate, but also the GDP growth rate for 2017-18 and 2018-19.<\/li>\n<li>Accordingly, GDP estimates for<strong> 2019-20 have been revised from 4.2% to 4 percent<\/strong>. For 2017-18 revision is from 7% to 6.8% and for 2018-19 it is from 6.1% to 6.5%.<\/li>\n<\/ul>\n<p><strong>What are the key takeaways from GDP revision?<\/strong><\/p>\n<ul>\n<li><strong>First<\/strong>, There have been many revisions of GDP estimates. The growth rate is still not certain. For example, for 2016-17 the GDP growth rate went up from 7.1%, as per the First Advance Estimates, to 8.3% in the final analysis.<\/li>\n<li><strong>Second,<\/strong> revision in 2019-20 figures is important for the base year effect. Due to COVID-19 disruptions in 2020-21, the GDP figures of 2019-20 becomes important for the comparison. Lower estimates in 2019-20, can result in higher figures of 2020-21 and 2021-22.<\/li>\n<li><strong>Third,<\/strong> India\u2019s GDP growth rate already going downwards from 2016 i.e. following an inverted-V shape. The COVID-19 pandemic brought that to a complete halt. Thus, a \u201cV-shaped\u201d recovery, which is being talked about by the expert is meaningless. For an actual recovery, the gains should first surpass the level of 2019-20.\n<ul>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Way forward-<\/strong><\/p>\n<p>The pandemic did not change the growth trajectory [it was already going down], it only made the decline even more precipitous.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source &#8211; The Indian Express Syllabus \u2013 GS 3 &#8211; Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment. Synopsis &#8211; Revised estimates of GDP are released. It would impact the growth prediction and levels of the future National Income. Introduction Last week all major financial publications were released i.e.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/impacts-and-importance-of-gdp-revised-estimates\/\">Continue reading <span class=\"screen-reader-text\">Impacts and importance of GDP revised estimates<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1284,1530],"class_list":["post-81295","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-eco_2","tag-gdp_national_income_updates","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700773669,"cached_date":1704672490},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/81295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=81295"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/81295\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=81295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=81295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=81295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}