Quarterly national accounts; changes 1988 -q1 2014

Table explanation

Description topics

Expenditure approach to GDP

This part of the table introduces the expenditure approach of Gross
Domestic Product (GDP).
The connection between GDP and expenditure components comes in to focus in
this part. The menu 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
last part: Additional details.

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).

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.

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 consumption expenditure may take place on
the domestic territory or abroad.
Final consumption expenditure exists only for households, NPI
households and general government.

Total

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 consumption 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

Final consumption expenditure by households and by Non-Profit Institutions
Final consumption expenditure by households includes the following
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 private domestic
consumption expenditure. This includes final consumption in the
Netherlands by residents and non-residents. Final consumption by
households can be calculated by deducting from private domestic
consumption expenditure the final consumption by non-residents in the
Netherlands (registered as exports) 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). Because 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 expenditure by
general government is calculated from the production costs:
intermediate consumption
plus:
plus:
plus:
minus:
=
minus:
minus:
plus:
=

Income approach to GDP

The income approach of gross domestic product is provided in this part of
the table.
Scheme:
Compensation of employees (+)
Operating surplus (net) (+)
Tax on productions and imports (+)
Subsidies (-)
= Gross domestic product (net)
Consumption of fixed capital (+)
= Gross domestic product (gross)

Consumption of fixed capital

Consumption of fixed capital represents the depreciation of the stock of
produced fixed assets, as a result of normal technical and economical
ageing and insurable accidental damage.
Losses due to catastrophes and unforeseen ageing are seen as a capital
loss.
Consumption of fixed capital is calculated on the basis of the perpetual
inventory method (PIM). This method starts with calculating the
replacement value of the stock of produced fixed assets at the beginning
of a year. This is done by correcting the value of this stock for price
changes that occur in that year for comparable fixed assets. Subsequently,
fixed capital formation is added and the value of discarded fixed assets
is deducted from the stock. This leads to an estimation of the value of
the stock of produced fixed assets at the end of the year. For each type
of asset, consumption of fixed capital is calculated by dividing its
average annual value by its expected life span.
This method may differ considerably from the method used to calculate
depreciation in business accounts, which is based on historical costs or
fiscal life span.

National net lending or net borrowing

This part of the table 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

Surplus of the nation on income approach

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.

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 consumption expenditure may take place on
the domestic territory or abroad.
Final consumption expenditure exists only for households, NPI-households
and general government.

Additional details

The additional details of some variables in the previous parts of this
table are being given in this section.

Consumption expenditure

More specific details of the final consumption expenditure are provided
in part of the table.
There are two classification for the consumption expenditure concept: the
expenditure classification and the acquisition classification.
The expenditure classification refers to expenditure on consumption goods.
In contrast the acquisition classification refers to the acquisition of
consumption goods and services. The difference between these concepts lies
in the treatment of certain goods and services financed by the government
or NPI households but supplied to households as social transfers in kind.
By convention, all final consumption expenditure by NPI households and
most of the final consumption expenditure by the government in the field
of education, health, social security and welfare, sport and recreation
and culture are treated as individual consumption.
I. The expenditure classification of final consumption:
This classification focuses on the expenses for consumption goods and
services. The total final consumptions is divided to sectors which
actually financed the consumption expenditures.
Classification scheme:
Total final consumption expenditure=
Consumption expenditure by households and by NPI households=
Consumption expenditure by households plus
Consumption expenditure by NPI households
Consumption expenditure by general government=
Collective consumption by general government plus
Individual consumption by general government
II. The acquisition classification of final consumption:
This classification focuses on the acquisition of consumption goods and
services. The total final consumption is divided to groups which have
acquired the consumption goods and services: individuals or the
collective.
Classification scheme:
Total final consumption expenditure=
Actual individual consumption=
Consumption expenditure by households
Consumption expenditure by NPI households
Individual consumption by general government
Actual collective consumption

Expenditure classification

The expenditure classification of final consumption:
This classification focuses on the expenses for consumption goods and
services. The total final consumptions is divided to sectors which
actually financed the consumption expenditures.
Classification scheme:
Total final consumption expenditure=
Consumption expenditure by households and by NPI households=
Consumption expenditure by households plus
Consumption expenditure by NPI households
Consumption expenditure by general government=
Collective consumption by general government plus
Individual consumption by general government.

Total 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 consumption expenditure may take place on
the domestic territory or abroad.

Consumption by households

Final consumption expenditure by households and by Non-Profit Institutions
Final consumption expenditure by households includes the following
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 private domestic
consumption expenditure. This includes final consumption in the
Netherlands by residents and non-residents. Final consumption by
households can be calculated by deducting from private domestic
consumption expenditure the final consumption by non-residents in the
Netherlands (registered as exports) 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.

Total

Final consumption expenditure by households and by Non-Profit Institutions
Final consumption expenditure by households includes the following
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 private domestic
consumption expenditure. This includes final consumption in the
Netherlands by residents and non-residents. Final consumption by
households can be calculated by deducting from private domestic
consumption expenditure the final consumption by non-residents in the
Netherlands (registered as exports) 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 of goods

Consumption of goods by households and NPI households.

Total

Consumption of goods by households and NPI households.

Domestic consumption

Final consumption expenditures which took place in the Netherlands.

Consumption by residents abroad

Final consumption by resident households in the rest of the world.

Consumption foreigner in the Netherlands

Final consumption by non-resident households in the Netherlands.