WALTERS WHITES OF ALMATY REGION OR HOW TO INCREASE THE COUNTRY'S  GDP BY 100 BILLION TENGE

A curious situation is developing with the statistics of the pharmaceutical industry. With a production volume of 79 billion tenge in 2018, gross value added (GVA) was as much as 151 billion tenge.

The catch is that the GVA is part of the volume of production and cannot exceed it. The only explanation is the difference in calculation methods. In contrast to the volume of production, the GVA also includes the so-called "non-observed economy", including "illegal".

Specifically, the pharmaceutical industry includes psychotropic substances and narcotic drugs.

The "GVA < production volume" rule applies to all regions of Kazakhstan, except for the Almaty region. Here, 24 billion tenge of production volume accounts for as much as 128 billion tenge of GVA. And 88% of this added value is profit.

A good business that way, which is now recorded in our official GDP. Keep this in mind when building official models.