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.

Disposable for final expenditure

The total amount of domestic generated goods and services (GDP) and the
imported goods and services are adding up to the disposable for final
expenditure. This variable is by definition equal to the total final
expenditure, which is the sum of the National final expenditure and the
exports of goods and services.

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).

Import of goods and services (fob)

On the macro level imports of goods is valued free on board (fob)at
the border of the exporting country. The transition from valuation
of imported goods at cif to fob consists of:
- a cif/fob adjustment of the transport costs abroad of Dutch
freighters. Total imports (goods) and exports (services) are
reduced by the same amount.
- a cif/fob reclassification of the transport costs abroad of for-
eign freighters, from imports of goods to imports of services.
It leaves total imports and total exports unchanged.
Imports of goods are goods intended for residents, which are
imported from abroad into the Dutch economic territory.
Included in imports of goods are raw materials, semi-
manufactured products, fuels and final products. Also included
are imported goods, which are re-exported without undergoing
any processing.
Imports of services include among other things the expenditures
abroad by Dutch tourists, inhabitants of the border area and
diplomats.

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.

Final consumption expenditure

Final consumption expenditure consists of expenditure incurred
by resident institutional units on goods and services that are
used for the direct satisfaction of individual needs or wants or
the collective needs of members of the community. Final con-
sumption expenditure may take place on the domestic territory
or abroad.
Final consumption expenditure exists only for households, NPI
households and general government.

Consumption by households incl. NPISH

Final consumption expenditure by households and by Non-Profit Institutions
Final consumption expenditure by households includes the fol-
lowing borderline cases:
- income in kind like accommodation, food, clothing etc.
- services of dwellings, which are occupied by the owners
themselves and without any actual rent payments. These
services are valued by applying the rents of similar dwellings.
- goods and services produced for own use, as in agriculture.
The value of these products is calculated by applying the
market prices for similar products.
- durable consumption goods such as private cars, household
appliances, furniture and clothing. However, the purchases of
dwellings by households are not seen as final consumption,
but as fixed capital formation by households.
The detailed data on consumption of households concern pri-
vate domestic consumption expenditure. This includes final con-
sumption in the Netherlands by residents and non-residents. Fi-
nal consumption by households can be calculated by deducting
from private domestic consumption expenditure the final con-
sumption by non-residents in the Netherlands (registered as ex-
ports) and adding final consumption by households in the rest of
the world (registered as imports).
Final consumption expenditure by NPI households
Final consumption expenditure by NPI households consists of all
the non-market output of this sector excluding the own account
capital formation.

Consumption by general government

Final consumption expenditure by general government results
from the specific recording of government output. Only a small
part of government output is actually sold (market output). The
larger part of government output is paid out of public funds and
provided free of charge to all sectors (non-market output). Be-
cause the allocation of government output to different users will
encounter large problems, the government is by convention
considered to be the consumer of its own output. Because of the
absence of market prices output and final consumption expen-
diture by general government is calculated from the production
costs:
intermediate consumption
plus:
plus:
plus:
minus:
=
minus:
minus:
plus:
=

Gross fixed capital formation

Fixed assets are produced tangible or intangible assets that are
used in the production process for more than one year.
Gross fixed capital formation consists of producers' acquisitions
less disposals of fixed assets:
- acquisitions, less disposals, of tangible fixed assets:
- acquisitions, less disposals, of intangible fixed assets:
- major improvements to land (reclamation, land consolidation
and land preparing for building).
Fixed capital formation also includes:
- work in progress of construction such as unfinished dwell-
ings, non-residential buildings and civil engineering works are
recorded as fixed capital formation of the client.
- military structures and equipment, similar to those used by
civilian producers, such as airfields and hospitals.
- improvements to existing fixed assets that go well beyond the
requirements of ordinary maintenance and repairs.
- transfer costs of fixed assets, such as conveyance fees and
costs made by real estate agents, architects and notaries.
On the level of the total economy and the sectors, an adjustment
is made for the transactions in used fixed assets, which are
seen as investments of the buyer and disinvestment of the
seller. This adjustment is not made for the industries.

Fixed capital formation by enterprises

Gross fixed capital formation by corporations, households and NPI
households.

Fixed capital formation by government

Gross fixed capital formation by general government.

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.

Exports of goods and services (fob)

Exports of goods are goods, which have been exported by resi-
dents from the Dutch economic territory to the rest of the world.
The exports of services include the services of Dutch transport
enterprises abroad, harbour services, ships repair services and
engineering of works by Dutch contractors abroad.
Also included in the exports of services are expenditures by for-
eign tourists, inhabitants of the border area and diplomats in the
Netherlands.