Benefits of Correctly Measuring GDP

The change in methodology implemented by the Central Bank of Costa Rica in the National Accounts System sheds light on problems that cause lack of competitiveness, tax injustice and social inequity.

Wednesday, February 24, 2016


An editorial in draws conclusions on the need to adapt the measurement of GDP in Costa Rica, to the changes taking place in the economy at the end of last century and what has elapsed so far in the present one.

The transformation of a predominantly agricultural economy to one based on services was not accompanied by the necessary correlative evolution in concepts related to fiscal policy, educational goals, or protectionism of local production, with this lag causing problems in fiscal inequity, reduced competitiveness against the region and the world, and maintainance of an unacceptable social inequality rate of 20%.

"... The new manual for the Central Bank's National Accounts System, recently published, allows us to learn more about the situation of the productive sectors in the country, feel the structural changes that are occurring and analyze the necessary economic policies needed to address the current challenges and those to come."

"... Most notable is that the production of the country has changed. We went from a mainly agricultural economy to one based mainly on services and with greater involvement of other productive sectors ... ...From this point of view, those politicians who cling to the illusion of a rural economy, as existed in times of our great-grandparents, do us wrong, especially when they are determined to protect it at all costs from the new economy, which is thriving much more, at a significant cost to the consumer. A good example is the protectionist policies of certain agricultural sectors, such as rice and other grains, still in vogue in the MEIC and the MAG. "

Read full article (in spanish).

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