Rebasing of national accounts is a process of replacing the old base year used to compile volume measures of GDP with a new and more recent base year or price structure.
A measure of the market value of all officially recognised final goods and services produced within a country in a given period, GDP also signals the direction of economic growth and welfare.
It is internationally recognised as an indicator to measure the size of the economy in a given time period.
Countries with up to date GDP rebasing are
The push by the AfDB for countries to rebase its GDP comes on the back of estimates that the continent's GDP was undervalued by 30%.
"The rebasing will see
He said some countries --
The base year provides the reference point to which future values of the GDP are compared.
It is a normal statistical procedure undertaken by the national statistical offices of countries to ensure that national accounts statistics present the most accurate reflection of the economy as possible.
According to the
It said that rebasing would reveal a more accurate estimate of the size and structure of the economy by incorporating new economic activities which were not previously captured in the computational framework.
Rebasing also gives governments a better understanding of the structure of the economy, an indication of sectoral growth drivers, sectors where policies and resources should be channelled in order to grow the economy, create jobs, improve infrastructure and reduce poverty, it said.
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