Quarterly national accounts; values

Table explanation

Description topics

Expenditure approach to GDP

The first chapter of this publication introduces the expenditure approach
of Gross Domestic Product (GDP).
The connection between GDP and expenditure components comes in to focus in
this chapter. The menu of this chapter shows the supply and disposition of
goods and services scheme which contains the expenditure components of
GDP.
More details data on the expenditure components could be found in de
fourth chapter: Additional details.
Data available from 1995 q1.

Total final expenditure

The sum of the National final expenditure and the exports of goods and
services. This variable is by definition equal to the disposable final
expenditure (GDP and imports).

Gross national final expenditure

Gross national final expenditure is the sum of the final consumption
expenditure, the gross fixed capital formation and the changes in
inventories.

National final expenditure, total

Gross national final expenditure is the sum of the final consumption
expenditure, the gross fixed capital formation and the changes in
inventories.

Changes in inventories

Changes in inventories including acquisitions less disposals of valuables
Inventories consist of all raw materials, semi-manufactured
goods, work in progress and final products, that producers have
in stock at a certain moment.
Changes in work in progress are in general considered to be
changes in inventories. However, work in progress in construc-
tion is seen as fixed capital formation of the client and not as
changes in inventories of the construction industry. This con-
cerns unfinished buildings and civil engineering works.
Increases in inventories occur when goods are produced (or
purchased) but not yet sold (or used) in the year under review.
Decreases in inventories occur when goods are withdrawn from
existing inventories in order to be sold or used in the production
process.
The assessment of the changes in inventories is done in such
way that gains or losses on inventories caused by price changes
are avoided. With this objective the initial and final stock of each
good is valued at the same price, namely raw materials at the
average purchase price in the period, final products at average
sales price and work in progress at the average cost price.
This valuation method prevents output and subsequently value
added from being influenced by changes in prices of stocks
during the period under review.
Acquisitions less disposals of valuables
This transaction consists of the acquisitions less disposals of
precious stones, non-monetary gold, antiques, art objects and
jewellery, that are acquired and held primarily as stores of value.
In the national accounts this transaction is mostly combined with
changes in inventories.

Production approach to GDP

The composition of GDP from the value added of all economic activities is
provided in this chapter.
Gross domestic product at market prices (GDP) is calculated as follows:
total value added at basic prices of industries
plus: balance of taxes and subsidies on products
plus:
VAT, taxes on imports, subsidies on re-exports cannot be attributed to
individual industries. Therefore, GDP at market prices cannot be broken
down completely by industry.
Data of total value added available from 1995 q1.
Other component from 1995 q1.

Gross value added at basic prices

Gross value added at basic prices of all economic activities.
Value added (basic prices)
Value added at basic prices by industry is equal to the difference
between output (basic prices) and intermediate consumption
(purchaser prices).

Gross value added by industry

Gross value added at basic prices by industry.
Value added (basic prices)
Value added at basic prices by industry is equal to the difference
between output (basic prices) and intermediate consumption
(purchaser prices).

Producers of commercial services

Gross value added at basic prices of producers of commercial services.
The commercial services producers contains the trade, repair, hotels and
restaurants, the transport, storage, post and telecommunication and the
financial and business activities.

Financial and business activities

Gross value added at basic prices of the Financial and business
activities.
SBI 1993: Section J and K; code 65 to 67 and 70 to 74.

Other business activities

Gross value added at basic prices of the other business activities.
SBI 1993: Section K (part); code 71 to 74 excl. 74.5.

Producers of non-commercial services

Gross value added at basic prices of producers of non-commercial services.
The non-commercial services producers contains the economic activities
of the general government and the care and other service activities.
The activities of the general government are the public administration and
social security, the defence activities and the subsidized education.
The care and other services activities contains the health and social work
activities, the sewage and refuse disposal services, the recreational,
cultural and sporting activities, the private households with employed
persons and other service activities i.e.

Care and other service activities

Gross value added at basic prices of the care and other services i.e.
The care and other services activities contains the health and social work
activities, the sewage and refuse disposal services, the recreational,
cultural and sporting activities, the private households with employed
persons and other service activities i.e.
SBI 1993: Sections N,O,P;
code 85, 90 to 93, 95 and 80.4.

Value added: ESA 1995, A6 classification

Gross value added at basic prices conform the A6 classification of the
European system of national accounts 1995.

Government, care and other services

Gross value added at basic prices of the general government and the care
and other services activities.
SBI 1993: Sections L,M,N,O,P,Q; code 75, 80.1-3, 99 and code 85, 90
to 93, 95 and 80.4.

National net lending or net borrowing

This chapter of the publication shows two approaches to the national net
lending or net borrowing.
The national net lending or borrowing shows the amount a country can
lend or has to borrow, given the current and capital transactions in the
national accounts. There are two approaches to this variable:
I. The approach through the surplus of national income
Scheme:
Gross domestic product (market prices)
Primary incomes received from the rest of the world (+)
Primary incomes paid to the rest of the world (-)
= Gross national income (market prices)
Current transfers received from the rest of the world (+)
Current transfers paid to the rest of the world (-)
= Gross disposable national income
Final consumption expenditure (-)
Adjustment for net equity in pension funds reserves (+)
=Gross national saving
Fixed capital formation incl. change in inventories (-)
=Surplus of the Nation on income
=Surplus of the Nation on current transactions with the rest of the world
Capital transfers received from the rest of the world (+)
Capital transfers paid to the rest of the world (-)
= National net lending and borrowing
II. The approach through the surplus of the nation on current transactions
with the rest of the world.
Scheme:
Net exports, the difference between exports and imports of
goods and services (+)
Net primary income from the rest of the world (+)
Net current transfers from the rest of the world (+)
=Surplus of the Nation on current transactions with the rest of the world
=Surplus of the Nation on income
Capital transfers received from the rest of the world (+)
Capital transfers paid to the rest of the world (-)
= National net lending and borrowing
Data of domestic products, consumption and gross fixed capital formation
are available from 1995 q1. Other components from 1995 q1.

Surplus of the nation on income approach

I. The approach of net lending or net borrowing through the surplus of
national income
Scheme:
Gross domestic product (market prices)
Primary incomes received from the rest of the world (+)
Primary incomes paid to the rest of the world (-)
= Gross national income (market prices)
Current transfers received from the rest of the world (+)
Current transfers paid to the rest of the world (-)
= Gross disposable national income
Final consumption expenditure (-)
Adjustment for net equity in pension funds reserves (+)
=Gross national saving
Fixed capital formation incl. change in inventories (-)
=Surplus of the Nation on income
=Surplus of the Nation on current transactions with the rest of the world
Capital transfers received from the rest of the world (+)
Capital transfers paid to the rest of the world (-)
= National net lending and borrowing.

Gross domestic product (market prices)

GDP is the total amount of domestic generated goods and services
(expenditure approach). It is also the sum of value added in all branches
of economic activities (production approach) and the total generated
income in the Netherlands (income approach).

Gross national income (market prices)

Gross National Income
Part of GDP flows to the rest of the world (wages and salaries to
non-resident employees, interests and dividends to non-resident
financiers), while income generated in the rest of the world is
transferred to the Netherlands.
National income is the sum of GDP and net primary income
from the rest of the world.

Gross disposable national income

Total disposable income of all resident units is called disposable
national income, which is equal to national income plus net cur-
rent transfers received from the rest of the world.

Final consumption expenditure

Total final consumption expenditure.

Adjustment for equity pension funds

Adjustment for net equity in pension funds reserves
Since households are treated in the financial accounts as
owners of the pension funds reserves an adjustment item is
necessary to ensure that any excess of contributions to pension
schemes over pension benefits does not affect household savings:
minus:
=
This adjustment is also made for the claims of non-residents on
the reserves of Dutch insurance companies.

Gross national saving

Saving is the difference between disposable income and final
consumption expenditure.
In the national accounts households are treated as owners of life
insurance and pension funds reserves. Since contributions to
pension schemes and pension benefits are recorded in the
secondary income account, an adjustment item (adjustment for
net equity in pension funds reserves) on the use of income
account is necessary to ensure that any excess of contributions
to pension schemes over pension benefits does not affect
household saving.

National net lending or net borrowing

The national net lending or borrowing shows the amount a country can
lend or has to borrow, given the current and capital transactions in the
national accounts.