Wednesday, September 30, 2009
Hungary to massage GDP numbers
And the figures are going to be elevated because they are now going to include the benefits of prostitution.
Sept. 30 (Bloomberg) -- Prostitution and the illegal drug trade boosted Hungary’s economic output figures for the last 14 years after the government revised the way it calculates gross domestic product.
The two activities account for about 1 percent of GDP, statistician Peter Szabo said in an interview in Budapest today. Their inclusion “significantly” boosted output figures going back to 1995, he said.
“There are more than 10 categories of prostitution, each with their own unit prices and other detailed data, so we simply had to account for them as output,” Szabo said. “Used by a foreign tourist, these services of course are considered exports.”
In 2005, Hungary told the IMF they would be getting revenue from prostitution. In 2007, Hungary said they were going to get another billion annually from the revenue of the sex workers entrepreneur's permit.
Today, it's just another off balance sheet item. But this time, its a boost!
Posted by Palmoni at 12:28 PM