3 1.13 Basic price The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as consequence of its production or sale; it excludes any transport charges invoiced separately by the producer.
1.14 Gross Domestic Product at Basic Prices Refers to the value of the gross output at basic prices of resident producers less the purchasers’ values of their intermediate consumption plus net taxes on products. Net taxes are the difference between government's tax revenue and the subsidies it gives to people, companies, and other economic sectors.
1.15 Gross National Income (GNI) GNI (gross national income) is GDP less net taxes on production and imports, less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world (in other words, GDP less primary incomes payable to none resident units plus primary income receivable from non-resident units); an alternatively approach to measuring GNI at market prices is as the aggregate value of the balances of gross primary incomes for all sectors; (note that GNI is identical to gross national product (GNP) as previously used in national accounts generally.
1.16 Real Gross Domestic Income Refers to a measure of the real purchasing power of income generated by domestic production (including the impact on those income of changes in the terms of trade); it is equal to gross domestic product at constant prices plus the trading gain (or less the trading loss) resulting from the changes in the terms of trade.
1.17 Real Gross National Income Refers to a measure of the real purchasing power of national income calculated by adjusting real gross domestic income for the real impact of primary income flows (property income and labour income) to and from the rest of the World.
1.18 Factor Incomes from the Rest of the World These include Primary Income and Factor Income from the Rest of the World. a) Primary Incomes These are payable out of the value added created by production. They include compensation of employees, property incomes (interests, dividends,) and taxes on production and imports net of subsidies.
4 b) Factor Incomes These are payments as a result of the use of factors of production (labour, capital and land).
c) Rest of the World Refers to all non-resident institutional units that enter into transactions with resident units or have other economic links with resident units.
1.19 Value Added It is the measure of the additional value created by a process of production in the economy for the reference period.
a) Gross Value Added The value of output minus the value of intermediate consumption; it is a measure of the contribution to GDP made by individual producer, industry or sector b) Net Value Added It is the value of output less the values of both intermediate consumption and consumption of fixed capital.
1.20 Goods and Services a) Goods These are physical objects for which a demand exists. The ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets. It includes goods for own consumption.
b) Services These are heterogeneous outputs produced on demand. Typically consist of changes in conditions of the consuming units realized by the activities of producers at the demand of the consumers. Services are not separate entities over which ownership rights can be established. They cannot be traded separately from their production.
1.21 Subsistence Production Refers to the value of goods and services produced at small scale and used by the producers themselves without exchange for money.
1.22 Stocks Stocks are a position in, or holdings of, assets and liabilities at a point in time and the System records stocks in accounts, usually referred to as balance sheets, and tables at the beginning
5 and end of the accounting period; stocks result from the accumulation of prior transactions other flows in the period (note that stocks of goods are referred to as “inventories” in the System).
1.23 Subsidies Subsidies are financial assistance provided by the government or other organizations to support specific industries, businesses, individuals, or activities. These payments are intended to encourage production, consumption, or investment in certain areas deemed to be in the public interest.
1.24 Other Subsidies on Production Other subsidies on production consist of subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production (eg, subsidies on payroll or workforce or subsidies to reduce pollution).
1.25 Other Subsidies on Products Other subsidies on products consist of subsidies on goods or services produced as the outputs of resident enterprises that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation; there are three broad categories: (1) subsidies on products used domestically, (2) losses of government trading organizations, and (3) subsidies to public corporations and quasi-corporations.
1.26 Export Subsidies Export subsidies consist of all subsidies on goods and services that become payable to resident producers when the goods leave the economic territory or when the services are delivered to non-resident units; they include direct subsidies on exports, losses of government trading enterprises in respect of trade with non-residents, and subsidies resulting from multiple exchange rates.
1.27 Output Output consists of those goods or services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.
1.28 National Disposable Income:
Refers to gross national income at market prices less current transfers, in cash or in kind
between resident and non-resident institutional units. Gross or net national disposable income
may be derived from gross or net national Income by:
6
Adding all current transfers in cash or in-kind receivable by resident
Institutional units from non- resident units; and subtracting all current transfers in cash or in-kind payable by resident institutional to non-resident units. a) Transfers Refers to transactions between one institutional unit and another unit without exchange of goods, services or assets in return.
b) Residence Is a center of economic interest in the economic territory of that country. Residence is not based on nationality or legal criteria. The residency status of producers determines the limits of domestic production and affects the measurement of gross domestic product and many flows in the system.
1.29 Capital Transfers Capital transfers are transactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset or in which the funds realized by the disposal of another asset are transferred.
1.30 Current Transfers Current transfers consist of all transfers that are not transfers of capital; they directly affect the level of disposable income and should influence the consumption of goods or services.
1.31 Gross National Disposable Income Is equivalent to GNI plus all secondary income in cash or in-kind receivable by resident institutional units from the rest of the world, less all secondary income in cash or in-kind payable by resident institutional units to the rest of the world.
1.32 Property Income Refers to the income receivable by the owner of a financial asset or a tangible non-produced asset in return for providing funds to or putting a tangible non-produced asset at the disposal of another, institutional unit.
1.33 Final Consumption Expenditure Refers to transactions on final consumption of goods and services by the household, government, and Non-Profit Institution Serving Households (NPISHs) in the economy during a reference period.
7 1.34 Final Consumption Expenditure of Government Government final consumption expenditure consists of expenditure, including imputed expenditure, incurred by general government in both individual consumption goods and services and collective consumption services.
1.35 Final Consumption Expenditure of Households Household final consumption expenditure consists of the expenditure, including imputed expenditure, incurred by residence households on individual consumption of goods and services, including those sold at prices that are not economically significant.
1.36 Final Consumption Expenditure of NPISHs Final consumption expenditure of NPISHs consists of expenditure, including imputed expenditure incurred by resident NPISHs on individual consumption of goods and services.
1.37 Compensation of Employees Refers to total remuneration in cash or in kind, payable by an enterprise to employees in return for work done by the latter during the accounting period.
1.38 Wages and Salaries in Cash Refers to the total remuneration in cash payable by an enterprise to an employee in return for work done during the accounting period.
1.39 Wages and Salaries in Kind Refers to the total remuneration in kind payable by an enterprise to an employee in return for work done during the accounting period. For example, food, accommodation and travel.
1.40 Intermediate Consumption Refers to the value of the goods and services used as inputs in the process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital; the goods or services may be either transformed or used up by the production process.
1.41 Actual Final Consumption of Households Is the value of consumption goods and services acquired by households, whether by purchase in general, or by transfer from government units or NPISHs, and used by them for the satisfaction of their needs and wants; it is derived from final consumption expenditure by adding the value of social transfers in kind receivable.
8 1.42 Gross Fixed Capital Formation Is measured by the total value of producer’s acquisitions, less disposals, of fixed assets during the accounting period plus certain additions to the value of non- produced assets (such as subsoil assets or major improvements in the quantity, quality or productivity of land) realized by productive activity of institutional units.
1.43 Acquisitions Goods and services are acquired by institutional units when they become the new owners of the goods or when the delivery of services to them is completed.
1.44 Changes in Inventories Changes in inventories (including work- in –progress) consists of changes in: a) stocks of outputs that are still held by the units that produced them prior to their being processed, sold, delivered to other units or used in other ways; and b) stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing; they are measured by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.
1.45 Gross Capital Formation Is measured by total value of the gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables for a unit or sector.
1.46 Acquisitions of Non-Financial Assets It is equal to Acquisitions of total non-financial assets less Consumption of fixed capital. Net acquisitions are partly actual purchases and sales of goods, but also reflect internal transactions of the producers. In practice, changes in inventories of goods in general are determined as total supply less total other uses of each good and subsequently summed over all goods.
1.47 Exports of Goods and Services Consists of sales, barter, or gifts or grants, of goods and services from residents to non- residents; the treatment of exports and accounts as described in the Balance of Payments Manual.
1.47.1 Exports of Goods Exports of goods consist of exports of the following items from residents to non- residents, generally with a change of ownership being involved: general merchandise, goods for processing, goods procured in domestic ports by non-resident carriers, and non-monetary gold.