The GDP growth figure stands as one of the most crucial indicators of economic performance, despite the inherent limitations of the concept. This is primarily because it offers an objective measure of an economy’s progress, facilitating comparisons with other nations and providing insight into its overall performance. The National Statistical Office (NSO) recently announced in its second advance estimate that GDP growth for FY24 would reach 7.6%, surpassing the previously forecasted 7.3%announced last month. This revised figure is likely to remain stable even in the May release after the fiscal year’s conclusion and can be regarded as the final assessment. How should we interpret this growth rate? There are two perspectives to consider regarding GDP growth as presented by the NSO: the output and expenditure approaches. Each offers a different narrative. The Output Approach Let’s first examine the output approach, which encompasses the performance of eight broad sectors. GDP is defined as value added plus net taxes (indirect taxes minus subsidies). Value added represents the output within each sector after deducting intermediate costs, which grew …