‘GDP rebasing will not make economic problems disappear overnight’

In an economy like Nigeria, where citizens always feel exploited by the government, there is always a pushback from the people when economic growth is mentioned, as in the case of the recently released rebased gross domestic product (GDP). Moses Waniko, an expert in national accounting and technical assistant to the Statistician General of the Federation, Semiu Adeniran, in this interview with JOSEPH CHIBUEZE, explains the fundamentals of GDP computation, why it does not equate to improved well-being, as well as what the recent rebasing means for the economy.

There has been so much noise about GDP growth in recent times. Of what importance is GDP data to the ordinary Nigerian?

The GDP is the market value of all goods and services produced within a country in each period. It measures overall economic activity and signals the direction of economic growth. It is also a barometer to measure the health of the economy. It is an internationally recognised indicator for measuring the size of an economy in each period. The GDP growth rate is a measure of the rate of change that a nation’s GDP experiences from one period to another, either annually or quarterly. GDP growth is important but not synonymous with economic development. Development encompasses broader measures of human progress beyond measuring output (GDP) growth, which mostly measures economic progress. In addition to measures of economic progress, development includes social and environmental measures that are not well captured by GDP.

By Joseph Chibueze

Full story at The Nigerian Guardian