Govt revises up 2013/14 GDP growth to 6.9%

The government revised up its economic growth forecast to 6.9 per cent from 4.7 per cent in the fiscal year to March 2014 on Friday after the formula to measure the economy was changed, a move that will make it easier to meet fiscal deficit goals.

The new measurement of gross domestic product (GDP) includes under-represented and informal economic sectors as well as items such as smart phones and LED television sets.

The government also revised its GDP for 2012/13 to 5.1 per cent from 4.5 per cent earlier.

The government revises the method of calculating national accounts and other macro data every five years, bringing in a newer base year and adjusting for changes in the economy.

It will now use 2011/12 as the new base year, instead of 2004/05.

(Reuters)