19 August 2014

Counting Sex, Drugs, Guns, Research and Development

Starting September 1, EU member states are mandated to implement the new European System of Accounts and calculate their GDP without any legal and moral judgments. National Statistics services will have to estimate the incomes and expenses of underground activities such as prostitution, drug trafficking, arms trade, as well as take into account expenditures for Research and Development. The new calculation rules will boost the GDP of member states, making the Debt-to-GDP ratio smaller by an estimated 1.9%.

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