Written by admin• November 11, 2023• 7:03 pm• Background Note, Debt Update, Insights, Policy Briefs, Research Briefs, Research Reports • Views: 5

Explaining the Mirage of GDP Growth Optimism

The government estimates that by 2015 per capita GDP will quadruple from what it was in 2004. But this is a mirage: real incomes will not even double in that period. The mirage is created by counting in US dollars and effectively presenting nominal growth in GDP (increased prices) as real GDP growth (increased incomes).

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Last modified: November 11, 2023

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Verité Research, as the name implies, is an independent think tank with research at its core. We carry out this research along four areas – economics, politics, media, and law. Leveraging this research, we provide strategic analysis and advice to governments, organisations, and the private sector in Sri Lanka and beyond.