Printer Friendly

Un accepts Cuba's GDP methodology.

A key United Nations panel has agreed after several years of dispute with Cuba to include social investment in calculations of the country's Gross Domestic Product.

Reuters reported Dec. 16 that the decision by the UN Economic Commission on Latin America and the Caribbean (ECLAC)--considered an authoritative source on the region's economies--was a victory for the Cuban government, which has argued that ECLAC's national accounts methodology was biased against non-market economies.

"We have worked all year with ECLAC, including its top officials, to perfect the method that can really measure our growth," Oscar Mederos Mesa, director of the Cuban National Statistics Office, told Reuters.

The dispute centered over whether Cuba could include in its growth calculations estimates of the market value of free social services and subsidized goods, as well as massive medical and other services exported mainly to Venezuela in exchange for oil.

Cuba began including the items in its GDP calculations in 2003, but ECLAC said the Cuban formula was under study and began noting its reservations when publishing the Caribbean island's data.

The different methodologies produced differing numbers. In 2004, for example, Cuba said its economy grew 5%, while ECLAC put the number at 3%.

An ECLAC spokesman could not be immediately reached for comment, but an ECLAC report issued in July included Cuban data without any of the past qualifications.

After the fall of the Soviet Union in 1991, the UN adopted a single system of national accounts, which in the introduction said it was meant for market economies and economies in transition to market-based ones, Cuba and North Korea being the only exceptions to the rule at the time.

COPYRIGHT 2009 Luxner News, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Date:Jan 1, 2009
Previous Article:De la Nuez: 2008 trade deficit up 7%.
Next Article:Chile's D&S pulls Cuba items.

Related Articles
Government claims Cuba's GDP grew 5% in 2004.
Eliminating GDP: something to hide?
Economy grows 3%.
Cuba reports 11.8% growth.
New report on Jamaican tourism.
Cuba claims 12.5% GDP growth in 2006.
4TH LD: Japan's economy in recession as GDP falls 0.4% in July-Sept. qtr.
Cuba cuts GDP forecast to 1.7%, delays Party congress.
Cuba: economy to grow 6% in 2009.
EIU: Cuba to enjoy hemisphere's fastest growth in 2009.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters