Nigeria is to “rebase” its gross domestic product (GDP) on Sunday 6 April, which should push it above South Africa as the continent’s biggest economy.
What is rebasing?
The United Nations defines rebasing as the “process of replacing present price structure [base year] to compile volume measures of GDP with a new or more recent base year”. Basically, it’s a need to update a country’s national statistics.
Economies are dynamic things; they grow, they shrink, they add new sectors and technologies and people’s behaviours change. One of the uses to which GDP data is put is to track how the economy grows over time. So, as GDP numbers are only relevant when compared to other GDP numbers, the year that serves as the base for their comparison needs to change as well to…
View original post 631 more words