How Data Quality Ratings are Produced
16 June 2019
Measuring GDP Quality
World Economics has developed the Global GDP Data Quality Ratings to review the utility of official GDP data of individual countries. The Ratings currently cover five factors to determine data quality. Each factor is evaluated to provide country scores which are then normalised using the standard deviation of the data for each factor and combined into the GDP DQR score using a weighted aggregate to reflect the importance of each of the individual factors.
These five factors used to judge data quality are:
- Base Year used to calculate the GDP data (chained or years out of date)
- Standard of National Accounts (SNA) applied
- Estimated Size of the Informal Economy
- Resources Devoted to Measuring Economic Activity
- A Proxy measure for likely Government Interference in Economic Data production
It should be noted that there is not infrequent variation between what the World Bank and IMF list as the most recent Base Year and/or most recent SNA in use, and what countries themselves claim to be using. This is sometimes caused by often unavoidable time lags in the International organisations being informed of changes that have taken place locally and sometimes simple error is involved. Whatever the reasons, World Economics takes some trouble to find out what is the on-the-ground reality behind the figures. If we also fail to reflect the latest changes occasionally, we apologise in advance, but hope the data in this report is as correct and timely as is possible to achieve.
Key Variables and Methodology
Base Year (Range from 1984 to Chained)
Constant price estimates of GDP use the inflation adjusted price of goods and services relative to a particular year, known as a base year, to weight the volume components of output. But since the structure of production and relative prices over ti