NewsWhore
08-14-2012, 03:50 PM
Economist Ernesto Selman said yesterday, Monday 13 August that the Dominican Republic's GDP was overvalued. The vice president of the Regional Center of Sustainable Economic Strategies (Crees) said that according to an alternative set of indicators that he has devised, the GDP could be as much as 36% overvalued since 2006. He told Hoy reporter Ubaldo Guzman: "We used a series of indicators to try and find an alternative indicator and see if the behavior of the economy that has been published by the officials corresponds with the real economy."
He said that they have developed an alternative indicator based on energy consumption converted into barrels of oil that are imported on a yearly basis. He said that they had looked at this indicator in the other countries in Latin America and they saw that there was a very tight correlation between energy consumption translated into fuels and GDP. Selman then said that in this country (DR) energy consumption translated into fuel consumption has gone in one direction while the GDP has gone in another. He said: "This does not correspond to what is happening in Latin America, the Caribbean or the rest of the world." He added that since 2002 and 2003 they realized that while energy consumption translated into barrels of oil remained relatively equal, the GDP, according to official numbers, has gone up. As a result he is calling for a revision and a change in the way the GDP is being calculated.
More... (http://www.dr1.com/index.html#9)
He said that they have developed an alternative indicator based on energy consumption converted into barrels of oil that are imported on a yearly basis. He said that they had looked at this indicator in the other countries in Latin America and they saw that there was a very tight correlation between energy consumption translated into fuels and GDP. Selman then said that in this country (DR) energy consumption translated into fuel consumption has gone in one direction while the GDP has gone in another. He said: "This does not correspond to what is happening in Latin America, the Caribbean or the rest of the world." He added that since 2002 and 2003 they realized that while energy consumption translated into barrels of oil remained relatively equal, the GDP, according to official numbers, has gone up. As a result he is calling for a revision and a change in the way the GDP is being calculated.
More... (http://www.dr1.com/index.html#9)