IMF Grading is divided into four grades:
- A: The data provided are adequate for surveillance.
- B: Data have some shortcomings but is broadly adequate for surveillance.
- C: Data have some shortcomings that somewhat hamper surveillance.
- D: Data have serious shortcomings that significantly hamper surveillance.
Key Issues highlighted by IMF
- Outdated Base Year (2011-12) for GDP calculation: fails to reflect current production technology and user preferences, which can lead to over or underestimating economic activity.
- Need to use updated data sources: E.g. Household consumption and expenditure survey (HCES), Periodic Labour Force Survey (PLFS), etc. to better capture the structural changes in the economy.
- Lack of Seasonally Adjusted Data: National accounts are not seasonally adjusted, making it difficult to interpret short-term quarterly movements.
- Outdated statistical techniques in the quarterly national accounts data.
- Lack of Producer Prices Indices (PPI): Excessive use of single deflation i.e. Wholesale Price Index (WPI), may introduce cyclical biases.
- Outdated CPI Components: The IMF highlights that the current CPI base year, items basket, and weights are outdated (2011/12).
IMF’s Recommendation:
Going forward, regular benchmark revisions of national account, price, and other key statistics should be conducted according to international best practices.
Key Statistical Indicators of Economy
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