Italy, the fun side of GDP – Update

Posted: May 23, 2014 in Uncategorized
Tags: , , ,

Well, when I found this news scouring the net this morning I could not write about it.

Both Businessweek and Bloomberg report (for us in Australia also NINE and SMH)

Italy will include prostitution and illegal drug sales in the gross domestic product calculation this year, a boost for its chronically stagnant economy and Prime Minister Matteo Renzi’s effort to meet deficit targets.

Drugs, prostitution and smuggling will be part of GDP as of 2014 and prior-year figures will be adjusted to reflect the change in methodology, the Istat national statistics office said today. The revision was made to comply with European Union rules, it said.

Well, as usual Italy does things in style (or let’s say they have the ability to tease themselves). While US, UK and also Australia recur to all dodgy system to improve the data (otherwise why would you feel poorer by the day? – for example if the Dow Jones 30 constituents of 1982 we re the same (only 2 companies are the same from 1982) the Dow Jones would be now approximately 4,000).

Again, the US last year changed the base year for GDP calculations

at least Italy has fun with it.

PS The news is true!

UPDATE

– Apparently this new calculations will be implemented in  all EUROPE!

– Finally Italy will have a GDP growth even better then China (real GDP growth -0.5%, estimated illegal activities (by the various Mafias) 17%)….Italian GDP +16.5% (well in reality, averaged out would be more a +11%…take that China at just 7.2%!! Too funny. And they complained of Berlusconi!

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