New counting method to boost GDP www3.nhk.or.jp
Japanese government officials say that they are going to start using a different method to calculate the size of the economy from later this year.
The Cabinet Office officials say the figure for nominal gross domestic product in 2011 rises by more than 190 billion dollars under the new method.
The revised total comes to about 4.8 trillion dollars.
The officials review their calculation methods about every 5 years. They say research and development spending will now be counted as investment. It has been classified as a cost and not included in GDP.
They say the revised third-quarter GDP to be announced in December will be based on the new method. They added that nominal figures will significantly rise from that point on.
The government has set a goal of raising the nominal GDP to 600 trillion yen, or 5.8 trillion dollars, by around 2020.
But observers say officials must push harder on economic reforms before they can hit that target.
Published Date:2016-09-16