1 Country Presentation of Bangladesh National Practices of Compilation of National Accounts...

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Country Presentation of BangladeshCountry Presentation of Bangladesh

National Practices of Compilation of National Accounts StatisticNational Practices of Compilation of National Accounts Statistic

on

Prepared By

1. Abul Kalam Azad, Deputy Director &

2. Mohammad Shaheen, Deputy Director

Bangladesh Bureau of Statistics

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Outline of the PresentationOutline of the Presentation

Background and Current SituationBackground and Current Situation Measurement of GDPMeasurement of GDP Quarterly National AccountsQuarterly National Accounts Methodology and data sourcesMethodology and data sources Limitations and challenges Limitations and challenges Plans for SNA 1993/2008Plans for SNA 1993/2008 Required Technical AssistanceRequired Technical Assistance

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Background and Current Background and Current SituationSituation: :

Bangladesh Bureau of Statistics (BBS) is the National Statistical Bangladesh Bureau of Statistics (BBS) is the National Statistical

Office of the Government of Bangladesh and provides official Office of the Government of Bangladesh and provides official

statistics under the policy guidance of the Ministry of Planning statistics under the policy guidance of the Ministry of Planning

through Planning Division and participates in policy monitoring through Planning Division and participates in policy monitoring

and evaluation through various inter-ministerial and inter-agency and evaluation through various inter-ministerial and inter-agency

committees. committees.

The BBS being the centralized data producing agency of the The BBS being the centralized data producing agency of the

Government, is entrusted with the responsibility of collecting, Government, is entrusted with the responsibility of collecting,

collating and disseminating statistical data required for socio-collating and disseminating statistical data required for socio-

economic management and development activities of the economic management and development activities of the

Government. Government.

In august 1975 Bangladesh Bureau of Statistics was re-organized In august 1975 Bangladesh Bureau of Statistics was re-organized

and set up as an integrated National Statistical Organization.and set up as an integrated National Statistical Organization.

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Measurement of GDPMeasurement of GDP

The national accounts of Bangladesh are compiled by the

National Accounting Wing of the Bangladesh Bureau of

Statistics since independence of Bangladesh.

The estimates are based on the concept, definition,

classification and methodology of the best practice document

“1993 System of National Accounts”.

GDP by production approach is based on value added by

industrial activity. Value added is calculated as gross output

less intermediate consumption .

GDP by expenditure category is calculated as the sum of the

final use of goods and services through final consumption,

capital formation and export less imports.

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Measurement of GDPMeasurement of GDP

GDP estimates at producer price/market price (base year 1995-96) following SNA-93

Difficulties in measuring growth or changes in output over a period of time when there is more than one base year.

BBS compiled a consistent time series of national accounts aggregates

of the old series (1984-85 base) linked with the new series (1995-96

base ) up to 1980-81.

Estimation of major national accounts aggregates (GDP, GNI,

consumption, Investment, Savings etc.)

1972-73 to 1983-84 (SNA68), 1984-85(rebasing), 1995-96 (revision and

rebasing(SNA93)

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Quarterly National AccountsQuarterly National Accounts

BBS does not compile QNABBS does not compile QNA On experimental basis BBS compiled an historic On experimental basis BBS compiled an historic

series of QGDP for 7 years a total of 28 quarters series of QGDP for 7 years a total of 28 quarters starting from 1995 to 2002starting from 1995 to 2002

This exercise was done for the national accounts This exercise was done for the national accounts compilers to be acquainted with the compilers to be acquainted with the methodology and concept of QGDP and also to methodology and concept of QGDP and also to asses further requirement of data for compiling asses further requirement of data for compiling QGDPQGDP

Adequate and timely data flow is not available Adequate and timely data flow is not available

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Methodology and Data Sources: Methodology and Data Sources: 1. Agriculture and forestry Sector

Crops and Horticulture: • Data on production volume of about 100 crops,

representing 100 percent of total crop output, are

taken from Agriculture wing of BBS.• For tea, cotton, and rubber, data are taken from

the respective development boards. • The value-added estimates for crops are based on

gross production less intermediate consumption

or production inputs.

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Methodology and Data Sources:Methodology and Data Sources:

1.Agriculture and forestry Sector

Crops and Horticulture: • Crop wise harvest prices are obtained from the

Director of Agricultural marketing. • A fixed ratio is applied for obtaining the input costs

which is based on the survey of the use of Inputs in

major Agriculture Crops by BBS.• Information of gross output and input costs for

horticulture have been collected by the sub district

statistical Offices of BBS through field survey.

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1. Agriculture and forestry Sector


Agriculture censuses 1983-84 and 1996 as benchmark Extrapolated by the survey of livestock and poultry of 1996/2005. Animal farming include (i) Meat (ii) Milk, (iii) Hides and skin

(iv) Cow dung, (v) Animal fats and others (vi) Poultry birds and eggs

Prices used for valuation of these products are collected from DAM.

On an average 26.6% of the value of output is deducted as IC to obtain the GVA of this sub-sector.

Animal Farming:

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1. Agriculture and forestry Sector


Forest and related services: • Private forestry output is based on a benchmark

production estimates based on the 1996 census

of Agriculture and extrapolated annually using

the production volume of crops as an proxy

indicator, the estimates are validated by periodic

survey of farm forest and household expenditure

survey. • Technical co-efficient derived from Input-Output

table for 1993-94 are used to estimate Gross

Value added.

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2. Fishing:

• The activities in the fishing sector include

• commercial fishing in high sea, coastal and offshore waters and catching and gathering fish from inland rivers, canals, lakes, haors, bills, ponds etc. and subsistence fishing in inland waters.

• The gross value added of this sector is estimated by applying the production approach. This involves estimation of the total value of output in producer value and deducting there from inputs ( in purchasers’ prices).


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2. Fishing:

• Data on fishery production are taken from the Directorate of Fisheries and the data is validated by results of HIES and foreign trade statistics.

• Prices by species types are obtained from the Directorate of Agriculture Marketing (DAM).

• Base years price is used for revaluation

Methodology and Data Sources : Methodology and Data Sources :

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Methodology and Data Sources : Methodology and Data Sources : 3. Mining and Quarrying Sector:

• The activities of this sector include extraction of natural gas and

production of limestone, white clay, stones and boulders, sands

and crude salt production.

• Basic data (production, intermediate input and prices) for mining

and quarrying of natural gas, limestone and white clay are taken

from state corporation engaged in the activity;

• output of sand and gravel are indirectly estimated as a fixed

ratio of cement, other product of quarrying are collected by BBS

through survey.

• Data obtained from BCIC, Regional office of BBS, Petrobangla

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Methodology and Data Sources : Methodology and Data Sources : 4. Manufacturing

• Estimate of gross value added of large manufacturing

( 10 or over employed persons) enterprises , which

represent around 70 percent of total manufacturing

value added is based on BBS Census of

Manufacturing Industries ( CMI) as benchmark, • Estimates are extrapolated based on quantum index

of industrial production compiled monthly by BBS. • PPI (Mfg.) is used for revaluation• Data Sources: CMI Report, CIPS of BBS & BSCIC

report

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Methodology and Data Sources : Methodology and Data Sources : 4. Manufacturing

• Value added estimate of small scale industry is

mainly based on 1991 census of small scale cottage

industries conducted by BSCIC. As the BSCIC census

did not cover handloom sub-sector, for estimating

aggregate value added from the small scale

manufacturing estimates, BBS handloom census are

taken into account, the bench mark estimates are

then extrapolated. • The non-farm economic activities reports of BBS and

QIIP of small industries of BBS are other source of

small scale industry.

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Methodology and Data Sources : Methodology and Data Sources : 5. Electricity, Gas, and Water:

• Basic data for direct estimates of gross value added of these sectors are taken from government enterprises and local governments providing the services.

• Electricity, gas, and water price indices are used to obtain value added at constant prices.

• Data Sources: PDB, REB, DESA, WASA, Petrobangla

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Methodology and Data Sources : Methodology and Data Sources : 6. Construction:

• Gross value of construction is derived from the

commodity flow of main construction materials

such as cement, iron and steel.

• Coefficient of construction activity in the input-

output table provides the parameter for

estimating gross value added.

• Building material price index compiled by BBS is

used as deflator.

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7. Wholesale and retail trade:

• Commodity flow of domestically produced goods

and imports is used for trade sector. This sector

covers only whole sale and retail trade services. • The trade margin is treated as gross output of this

sector and 8.36% of the values are taken as

intermediate consumption.

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Methodology and Data Sources : Methodology and Data Sources : 7. Wholesale and retail trade:

• Trade margin is derived annually from special

studies and expert opinion. • Value added ratios, taken from the BBS annual

integrated survey of non-farm economic activities

and input-out-put table, are multiplied to the

estimated value of trade margins to derive gross

value added. • WPI (all group) used for revaluation• Data sources: Bangladesh Bank, BBS

2020


8. Transport, Storage and Communication:

• Transport data are derived into air, land and water,

differentiated into public and private sector.

• Data on public sector including Bangladesh Biman

are taken from financial statement and balance

sheet of government corporations engaged in

these services.

• Gross value added for private transport is derived

on the basis of numbers of vehicles registered with

the relevant government units multiplied by a fixed

value added per vehicle estimated from periodic

surveys or special studies.

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Methodology and Data Sources : Methodology and Data Sources : 8. Transport, Storage and Communication:

• Price index on fare and fright are used to inflate the

estimate to current price. • Communication sub-sector includes activities of

Bangladesh Post Office and Bangladesh Telephone

and Telegraph Board. • Out put is based on total receipts for the services

rendered. Deducting intermediate consumption

from the output, the value added is obtained. • Privately owned communication such as mobile

phone, fax, and courier services are also included

as far as data is available.

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Methodology and Data Sources : Methodology and Data Sources : 8. Transport, Storage and Communication:

• Storage sub-sector is divided into urban and rural

storage. the data source for urban storages is the

cold storage association.

• Storage capacity on rural areas is estimated with

the help of the benchmark data obtained from the

agriculture censuses and is validated by the

survey on private storage.

• Deflated by House Rent Index (HRI) to obtain the

value added at constant prices.

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Methodology and Data Sources : Methodology and Data Sources : 9. Hotel and restaurant services:

Output of this sector is estimated from the • Annual Integrated survey of Non-farm economic

activities, 1989-90, • Report on Annual Establishment and Institution Survey

1992-93 and also survey findings of the • Report on Survey of Selected Economic Activities

1995-96. • The output of hotels and restaurants is measured by

the service which is the value of the sale receipts net

of food costs plus receipts from other services

rendered, rentals, etc.

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Methodology and Data Sources : Methodology and Data Sources : 10. Financial Intermediation

(a) Banking:

• Value added of this sector is measured through

production method. • Net interest receipt plus actual service charges

(rental income, commission and other fees) are

added up to obtain the value of gross output. • Intermediate consumption is subtracted to have

the value added of this sector.

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Methodology and Data Sources : Methodology and Data Sources : 10. Financial Intermediation

(a) Banking:

• Annual financial statements available from public

and private banks provide the basic data for direct

estimate of gross value added for banking. • Stock Exchange provides financial auxiliary

services in the economy. • Values added from Stock exchanges are also taken

into account. Estimates excludes small and other

informal units engaged in intermediation services

and non-government institutions engaged in small

deposits and lending operations.

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(b) Insurance:

10. Financial Intermediation

• The value of output in Insurance sub-sector

comprises net retained premium, investment

income, re-insurance income as well as services

rendered by insurance agents, brokers etc. • Intermediate consumption is subtracted to get the

value added. • Annual reports of the concerned insurance

companies are the sources of the data.

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Methodology and Data Sources : Methodology and Data Sources : 11. Real state, Renting and Business activities:

• Production approach is used. Number of own

occupied dwelling by urban and rural areas are

obtained from the population census which is used

as bench mark data.

• Average annual house rent (as per HES) is applied

to provide estimate of gross output.

• Maintenance cost is treated as intermediate

consumption. Owner-occupied dwellings’ out-put

is valued as the estimated rentals that tenants

would pay for similar accommodation.

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Methodology and Data Sources : Methodology and Data Sources : 12. Public administration:

• Budget and actual government expenditure of

central and local government serve as the

basis for estimation of gross value added; data

on central government are taken from the

Ministry of Finance while those of the local

government are based on annual questionnaire

distributed to the local government units by the

BBS. Wages and salaries are considered as

value added of this sector.

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Methodology and Data Sources : Methodology and Data Sources : 13. Education :

• The estimate are prepared both for government

and privately managed educational institutions

and education related activities. • For public institutions, gross value added is

taken to be the same as the total wages and

salaries of teachers and other non –academic

staff employed in educational institutions. • Data public portion are obtained from

Government budget/ expenditure on wages and

salaries of educational personnel.

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13. Education :

• The data for private educational services are

estimated from the report of the survey on Private

Education Services in Bangladesh, population

census, Labour force survey and Annual integrated

survey on Non-farm Economic activities. • Current estimates are obtained by using consumer

price index (CPI, Govt. employee, Data generation

group)

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Methodology and Data Sources : Methodology and Data Sources : 14. Health and Social work:

• For Public health sector, gross value added is taken

as equivalent to the budget expenditure on wages

and salaries of the doctors and other medical and

non-medical staff. • Survey of private health services 1997-98 provides

benchmark information on CE, IC, CFC and Os. • Benchmark estimates of incomes of the medical

professionals (those are in private practices) are

taken into account for estimation of value added of

this sector.

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Methodology and Data Sources : Methodology and Data Sources : 15. Community, Social and Personal Service Sector:

• Net earning per person of the benchmark year is

multiplied by the number of professional or

miscellaneous services personnel to arrive

value added at constant prices of that particular

group. • Value added of all the groups are summed up to

obtain total value added of this sector. • Current price estimates are obtained by inflating

constant price estimate using wage rate index.

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Limitations & ChallengesLimitations & Challenges

For compilation of GDP by production method, For compilation of GDP by production method, there are various types of limitations in there are various types of limitations in respect of data coverage and methodology respect of data coverage and methodology (prices, input, output technical coefficients/ (prices, input, output technical coefficients/ mark-ups etc.)mark-ups etc.)

Appropriate price deflators – CPI, WPI, WRI, Appropriate price deflators – CPI, WPI, WRI, FFI etc.FFI etc.

Lack of timely dataLack of timely data Required surveys are not regularRequired surveys are not regular Men power shortageMen power shortage Insufficient fundInsufficient fund

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Plans for 1993/2008 SNAPlans for 1993/2008 SNA

• Since 1995-96 GDP estimates following SNA-93

• Not yet planning for SNA 2008

• Regularly compiled Production account and Expenditure based GDP

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Required technical assistanceRequired technical assistance

Consultation servicesConsultation services Assistance for various surveys on the Assistance for various surveys on the

areas lacking data, for example data on areas lacking data, for example data on tourism sector, different service sectors tourism sector, different service sectors like private health, private education like private health, private education and so onand so on

TrainingTraining

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Thank You Thank You

1 Country Presentation of Bangladesh National Practices of Compilation of National Accounts...

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