Methodological explanation for the news release:
Gross domestic product, revised data
Definitions of the basic categories
Gross domestic product (production approach)
Gross domestic product (GDP) at market prices is the final result of the production activity of the resident producer units and it is the sum of gross value added of the various institutional sectors or the various activities at basic prices plus value added, import duties less subsidies on products (which are not allocated to sectors and activities).
Value added
Gross Value added at basic prices is the basic category of GDP. It represents the balance between gross output and intermediate consumption.
Gross output
Gross output is considered to be the value of goods and services produced in the course of one year, regardless of whether or not the whole quantity is sold or partially added to stocks. It consists of three kinds of output: market output, market output for own use and non-market output. Due to the specifics of some activities, various definitions of gross output exist.
Intermediate consumption
Intermediate consumption is considered to be the value of products and market services, which the producer uses as inputs in the production process, excluding fixed capital consumption i.e. depreciation, in order to produce other products and services. This category includes consumption of current purchases, stock consumption as well as consumption of own products and services in the production process. For non-market service producers, the value of intermediate consumption is equal to the value of current purchases. Therefore, intermediate consumption includes the use of raw materials, energy, office supplies, spare parts, transport costs of employees, daily allowances, separate life, contract payments and other benefits received by the employees, and which are connected with the performing of a regular economic activity.
Calculations of GDP at annual level at constant prices according to the production approach
In the calculations of GDP at constant prices a movable base year is used, which means that each previous year is a base year.
Within the calculations of the data on GDP, the following methods are used: the method of single extrapolation method of double extrapolation and the method of single deflation.
In the method of single and double extrapolation, part of volume indices used are calculated from the business statistics, while part of them are calculated in the appropriate division of the National Accounts Sector.
Corresponding price indices are used for the method of single deflations.
In some economic activities employee’s indices are used as an indicator for those activities.
Gros domestic product (expenditure approach)
The expenditure method of GDP measures final uses categories, i.e. consumption of final goods and services produced in the domestic economy, for final use, gross capital formation and net export of goods and services.
GDP = Final consumption expenditure + gross investment + export - import
Final consumption expenditure
Final consumption expenditure consists of expenditure incurred by resident institutional units on goods or services that are used for the direct satisfaction of individual needs or wants or the collective needs of members of the community. Final consumption expenditure may take place on the domestic territory or abroad.
Final consumption expenditure= Household final consumption + Final consumption of NPISHs + Government final consumption
Gross capital formation
Gross fixed capital formation
Gross fixed capital formation is measured by the total value of producer acquisitions, less disposals of fixed assets during the accounting period, plus certain additions to the value of non produced assets realized by the productive activity of the institutional unit.
Change in inventories
Change in inventories is considered to be the value of total inventory inputted, reduced by the value of discharged inventories and the value of all periodical losses of goods that are held in stock. Products that enter or leave inventories are implicitly treated as sold or procured from stocks and are valued according to the prices of actual sales or purchases that take place at the same time.
Export of goods and services
Export of goods and services means barter or gift of goods and services, by residents to non-residents.
Import of goods and services
Imports of goods and services are sale, barter or gift of goods and services, to residents by non-residents.
Data on export of goods and import of goods are valuated by FOB principle.
Non-resident purchases
Non-resident purchases in the country cover the purchases by international organizations, embassies and diplomatic missions, and tourism purchases by non-residents.
Annual calculation of GDP according to the expenditure approach at constant prices
Calculations of Expenditure Aggregates of GDP (final consumption expenditure, gross capital formation, export-import of goods and services) at constant prices are made with the deflation method by using appropriate deflators (prices indices), for each aggregate of gross domestic product use.
For general government consumption at constant prices, besides the method of deflation, the method of extrapolation is used as well, in order to harmonize the calculations with the corresponding divisions of GDP calculated by production method at constant prices.
The deflated values of the aggregate expenditures of the gross domestic product, calculated according to the expenditure method, are used for calculation of the volume indices, which serve for extrapolation of the values of expenditure aggregates from the reference year.
Last updated:
10.02.2011
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