₦airaland Forum

Just an observation and I'm wondering

http://www.nuc.edu.ng/pages/universities.asp?ty=3&order=inst_name&page=1

nanomole: I have always wondered how and why GDP is okay as a measure of growth. It is even worse to use it in Nigeria where some economically moribund states claim to have more GDP than others who are actually performing economic activities. The case of Nigeria confirms that GDP is merely calculated based on the amount of money received from the FG N in which case large (yet internally unproductive) states receive more that smaller, very productive states.

For example:

Oyo state (large, receives more money from the fed, economically zero) vs Anambra (small, receives less from the fed, full of economic activity)
The true measure of economic growth is in the article below which exposes the farce that use of GDP for that purpose is.

The facts on the ground tell a better story than some theoretically, often artificially inflated GDP values.

Nigeria has a greater GDP on paper than Botswana, but Botswanans have a far superior living standards than Nigerians. What do you take: paper greatness or a real, palpable one?

How can you sit in a cave in Umuahia and say Oyo state is economically zero? Do you know how many factories are situated in Oyo State to start with, taking advantage of the low tax and cost of production as well as the state's proximity to Lagos?

It's the simple reason why Oyo State's GDP is almost four times the GDP of Enugu

GDP is most certainly a strong indicator of economic growth. I'm shocked someone will naively bring this up

Background
The gross domestic product (GDP) is the godfather of the indicator world. As an aggregate measure of total economic production for a country, GDP represents the market value of all goods and services produced by the economy during the period measured, including personal consumption, government purchases, private inventories, paid-in construction costs and the foreign trade balance (exports are added, imports are subtracted).

Presented only quarterly, GDP is most often presented on an annualized percent basis. Most of the individual data sets will also be given in real terms, meaning that the data is adjusted for price changes, and is therefore net of inflation.

The GDP is an extremely comprehensive and detailed report. In fact, reading the GDP report brings us back to many of the indicators covered in earlier tutorial topics, as GDP incorporates many of them: retail sales, personal consumption and wholesale inventories are all used to help calculate the gross domestic product. Various chain-weighted indexes discussed in earlier topics are used to create Real GDP Quantity Indexes with a current base year of 2000. (For further reading, see The Importance Of Inflation And GDP.)

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What it Means for Investors
Real GDP is the one indicator that says the most about the health of the economy and the advance release will almost always move markets. It is by far the most followed, discussed and digested indicator out there - useful for economists, analysts, investors and policy makers. The general consensus is that 2.5-3.5% per year growth in real GDP is the range of best overall benefit; enough to provide for corporate profit and jobs growth yet moderate enough to not incite undue inflationary concerns. If the economy is just coming out of recession, it is OK for the GDP figure to jump into the 6-8% range briefly, but investors will look for the long-term rate to stay near the 3% level. The general definition of an economic recession is two consecutive quarters of negative GDP growth.

While the value of both exports and imports are included in the GDP report, imports are subtracted from total GDP, meaning that all consumer purchases of imported items are not counted as contributions toward GDP. Because the U.S. runs a current account deficit, importing far more than is exported, reported GDP figures have a slight drag on them. A related measure provided in the report, gross national product (GNP), goes one step further by only counting the value of goods and services produced by labor and property within the United States. (To learn more, read Current Account Deficits.)

The "corporate profits" and "inventory" data in the GDP report are a great resource for equity investors, as both categories show total growth during the period; corporate profits data also displays pre-tax profits, operating cash flows and breakdowns for all major sectors of the economy.

The biggest downside of this data is its lack of timeliness; investors only get one update per quarter and revisions can be large enough to significantly change the percentage change in GDP.



The Bureau of Economic Analysis (BEA) even supplies its own analysis of the quarterly data, presenting several useful documents that condense the massive release down to a manageable and readable size. They also provide an annual analysis of data that segments results down to the industry level - a very useful tool for both equity and fixed-income investors who are interested in particular industries related to their holdings.

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Strengths:
GDP is considered the broadest indicator of economic output and growth.
Real GDP takes inflation into account, allowing for comparisons against other historical time periods.
The Bureau of Economic Analysis issues its own analysis document with each GDP release, which is a great investor tool for analyzing figures and trends, and reading highlights of the very lengthy full release

Weaknesses:
Data is not very timely - it is only released quarterly.
Revisions can change historical figures measurably (the difference between 3% and 3.5% GDP growth is a big one in terms of monetary policy)

The Closing Line
While quarter-to-quarter figures can show some volatility, long-term trends in GDP growth remain the single most conclusive piece of information on the economy as a whole. This indicator is a must-know for investors in all asset classes.



Read more: http://www.investopedia.com/university/releases/gdp.asp#axzz2CYRo3VBE

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Asking again

Any answer?

A friend has an issue which he confided in me and through my few years in HR, I’ve not come across such an issue and I’m wondering if someone else has. He joined Bank A some years ago and before joining, his résumé was sent in by a senior colleague of his who quoted his age as two years younger. While filling some forms he maintained the age on the résumé. However, he rescinded on the decision and talked to the guys in HR to withdraw his application. He was however told that it’s not that serious and given another form to fill which he backed up with an original copy of his birth certificate as a proof of his age.
All the years he worked with Bank A, his record on the account information showed his actual DOB, which was the only place he could check his birth date and he assumed all was well. He was confirmed six months later and had no issues with the bank.

Fast forward to two years later, he resigned and joined Bank B. He once again presented his original birth certificate as the evidence of his DOB. However, when he was about to be confirmed, they wrote his previous employer (Bank A), to verify his details in their records. However, to his chagrin, they quoted an entirely different DOB. He thereafter complained and they re-sent another info quoting his age as what was originally on the résumé sent (i.e two years younger). He called and visited his previous employers frequently but they claimed that that was what they had in his records. However, there was no other document to verify his age from them. (No birth certificate or declaration of age).

I advised him some time ago to write Bank A but his letter was quite damaging, listing names and vivid events and I told him there’s no way they would respond. I advised him to write the letter apologizing for the mix up and that he submitted his birth certificate as an evidence of his DOB and that when he checked his customer information on the banking application, it showed his actual DOB. Fair enough, they responded to Bank B, correcting his DOB. However, Bank B is suspecting foul play and has asked why the several inconsistencies. As a result Bank A, sent the letter written by my friend and some other first form he filled showing his DOB as two years younger. However, there’s no evidence of his DOB attached.

I’ve told him to talk to the Head of HR in his new bank and explain things himself. However, he is very apprehensive and blames me for the letter I asked him to write to his previous employers which now seems to be working against him. He's a very dear friend and a family man and I just cant get over the thought or possibility of him losing his job.

A friend has an issue which he confided in me and through my few years in HR, I’ve not come across such an issue and I’m wondering if someone else has. He joined Bank A some years ago and before joining, his résumé was sent in by a senior colleague of his who quoted his age as two years younger. While filling some forms he maintained the age on the résumé. However, he rescinded on the decision and talked to the guys in HR to withdraw his application. He was however told that it’s not that serious and given another form to fill which he backed up with an original copy of his birth certificate as a proof of his age.
All the years he worked with Bank A, his record on the account information showed his actual DOB, which was the only place he could check his birth date and he assumed all was well. He was confirmed six months later and had no issues with the bank.

Fast forward to two years later, he resigned and joined Bank B. He once again presented his original birth certificate as the evidence of his DOB. However, when he was about to be confirmed, they wrote his previous employer (Bank A), to verify his details in their records. However, to his chagrin, they quoted an entirely different DOB. He thereafter complained and they re-sent another info quoting his age as what was originally on the résumé sent (i.e two years younger). He called and visited his previous employers frequently but they claimed that that was what they had in his records. However, there was no other document to verify his age from them. (No birth certificate or declaration of age).

I advised him some time ago to write Bank A but his letter was quite damaging, listing names and vivid events and I told him there’s no way they would respond. I advised him to write the letter apologizing for the mix up and that he submitted his birth certificate as an evidence of his DOB and that when he checked his customer information on the banking application, it showed his actual DOB. Fair enough, they responded to Bank B, correcting his DOB. However, Bank B is suspecting foul play and has asked why the several inconsistencies. As a result Bank A, sent the letter written by my friend and some other first form he filled showing his DOB as two years younger. However, there’s no evidence of his DOB attached.

I’ve told him to talk to the Head of HR in his new bank and explain things himself. However, he is very apprehensive and blames me for the letter I asked him to write to his previous employers which now seems to be working against him. He's a very dear friend and a family man and I just cant get over the thought or possibility of him losing his job.