Country Presentation of Bangladesh
on
National Practices of Compilation of National Accounts Statistic
Prepared By
1. Abul Kalam Azad, Deputy Director
&
2. Mohammad Shaheen, Deputy Director
Bangladesh Bureau of Statistics
1
Outline of the Presentation
 Background
and Current Situation
 Measurement of GDP
 Quarterly National Accounts
 Methodology and data sources
 Limitations and challenges
 Plans for SNA 1993/2008
 Required Technical Assistance
2
Background and Current
Situation:

Bangladesh Bureau of Statistics (BBS) is the National Statistical
Office of the Government of Bangladesh and provides official
statistics under the policy guidance of the Ministry of Planning
through Planning Division and participates in policy monitoring
and evaluation through various inter-ministerial and inter-agency
committees.

The BBS being the centralized data producing agency of the
Government, is entrusted with the responsibility of collecting,
collating and disseminating statistical data required for socioeconomic management and development activities of the
Government.

In august 1975 Bangladesh Bureau of Statistics was re-organized
and set up as an integrated National Statistical Organization.
3
Measurement 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.
4
Measurement 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)
5
Quarterly National Accounts

BBS does not compile QNA
 On experimental basis BBS compiled an historic
series of QGDP for 7 years a total of 28 quarters
starting from 1995 to 2002
 This exercise was done for the national accounts
compilers to be acquainted with the
methodology and concept of QGDP and also to
asses further requirement of data for compiling
QGDP
 Adequate and timely data flow is not available
6
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.
7
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.
8
Methodology and Data Sources:
1. Agriculture and forestry Sector
Animal Farming:





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.
9
Methodology and Data Sources:
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.
10
Methodology and Data Sources:
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).
11
Methodology and Data Sources :
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
12
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
13
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
14
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.
15
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
16
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 inputoutput table provides the parameter for
estimating gross value added.
• Building material price index compiled by BBS is
used as deflator.
17
Methodology and Data Sources :
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.
18
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
19
Methodology and Data Sources :
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.
20
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.
21
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.
22
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.
23
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.
24
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.
25
Methodology and Data Sources :
10. Financial Intermediation
(b) Insurance:
•
•
•
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.
26
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.
27
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.
28
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.
29
Methodology and Data Sources :
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)
30
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.
31
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.
32
Limitations & Challenges






For compilation of GDP by production method,
there are various types of limitations in
respect of data coverage and methodology
(prices, input, output technical coefficients/
mark-ups etc.)
Appropriate price deflators – CPI, WPI, WRI,
FFI etc.
Lack of timely data
Required surveys are not regular
Men power shortage
Insufficient fund
33
Plans 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
34
Required technical assistance
 Consultation
services
 Assistance for various surveys on the
areas lacking data, for example data on
tourism sector, different service sectors
like private health, private education
and so on
 Training
35
Thank You
36