23 Dec 2010

Data weightings for GDP figures under spotlight

8:10 am on 23 December 2010

Some economists are questioning whether economic growth is being underestimated because of the way activity in the communications sector is measured.

Gross Domestic Product figures will be released on Thursday morning and most economists are expecting the economy to have grown by 0.2% in the three months to September.

However some are questioning whether activity in the communications sector, which makes up about 6% of GDP, is being fairly measured in a way that takes into account new technologies like email and Skype.

Westpac senior economist Dominick Stephens says measurement issues make it hard to compare the pace of GDP growth in this recovery with previous ones.

Statistics New Zealand GDP general manager Jason Attewell agrees measuring activity in the communications industry is difficult because technology is constantly changing.

But Mr Attewell says the agency is doing its best to reflect the real world its figures.

He says updated weightings for the communications sector will be announced with the GDP data released on Thursday.