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Xalq newspaper: "GDP in the oil and gas sector doubled in 9 months"

Xalq newspaper: "GDP in the oil and gas sector doubled in 9 months"

Short summary of the news

- On October 25, Xalq newspaper published an article entitled "GDP (gross domestic product) in the oil and gas sector has doubled in 9 months." The article states that "according to the State Statistical Committee, GDP in the oil and gas sector increased by 98.5 percent in January-September of the current year compared to the corresponding period of the previous year and amounted to 34 billion 647 million manats."

- According to the report of the State Statistical Committee (p. 14), during the first nine months of 2022, the GDP of the oil and gas sector in Azerbaijan was equal to 47 billion 868 million manats. During the first nine months of 2023, this indicator decreased by 27.6 percent and was equal to 34 billion 647 million manats.

- According to the indicators announced by the SSC for the first nine months of 2023, during this period, the real GDP in the oil and gas sector in the country decreased by 1.5 percent.

On October 25, Xalq newspaper published an article entitled "GDP (gross domestic product) in the oil and gas sector has doubled in 9 months. The article states that "according to the State Statistical Committee, GDP in the oil and gas sector increased by 98.5 percent in January-September of the current year compared to the corresponding period of the previous year and amounted to 34 billion 647 million manats."

Fakt Yoxla checked whether the claim was true.

Note that the gross domestic product (GDP) is the total market price of all goods and services produced in the economy (within the country). 

According to the report of the State Statistical Committee (p. 14), during the first nine months of 2022, the GDP of the oil and gas sector in Azerbaijan was equal to 47 billion 868 million manats. During the first nine months of 2023, this indicator decreased by 27.6 percent and was equal to 34 billion 647 million manats.

However, it should be taken into account that the comparison of GDP with previous years is based on real figures, not nominal ones. Because, during the comparison, it is necessary to take into account the effect of price increase or decrease on GDP.

Nominal GDP reflects current prices, while real GDP reflects the total value of goods and services produced at the prices of the base period. To neutralize the impact of price changes on GDP, the statistical authority uses an indicator called "GDP deflator". The indicator of real GDP obtained as a result of the application of this indicator is used to measure the real growth of production. The State Statistical Committee discloses the dynamics of GDP precisely on the basis of the real GDP method.

According to the indicators announced by the SSC for the first nine months of 2023, during this period, the real GDP in the oil and gas sector in the country decreased by 1.5 percent.

In short, in the first nine months of the current year, GDP in the country's oil and gas sector decreased by 1.5 percent.

It should also be noted that the mentioned article also states separately that "value-added in the oil and gas sector of the economy has decreased by 1.5 percent." Although GDP and value-added are treated as separate concepts in the article, they have the same meaning. In this regard, it is true that the value-added in the oil and gas sector decreased by 1.5 percent in the first nine months of the year; however, the newspaper made a mistake by stating that the GDP increased by 98.5 percent.

Fakt Yoxla concludes that the claim of Xalq newspaper is False.

False
  • 30 October, 2023
  • 1395

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