Contribution final expenditure to volume growth of GDP; NA, 1995-2016

Table explanation

Description topics

Gross domestic product, volume growth

Gross domestic product (GDP) is a quantity that expresses the size of an economy. The volume change of GDP during a reference period expresses the growth or shrinkage of the economy. Gross domestic product at market prices is the final result of the production activity of resident producer units. It can be defined in three ways:

- production approach: GDP is the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products (which are not allocated to sectors and industries). It is also the balancing item in the total economy production account;
- expenditure approach: GDP is the sum of final uses of goods and services by resident institutional units (final consumption and gross capital formation), plus exports and minus imports of goods and services;
- income approach: GDP is the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and mixed income of the total economy).

Net domestic product at market prices (NDP) can be obtained by deducting consumption of fixed capital from GDP.

National final expenditure

The sum of the consumption of households and the government, gross fixed capital formation and changes in inventories.

Total

Final consumption expenditure

Expenditure on goods or services that are used for the direct satisfaction of individual or collective needs. Expenses may be made at home or abroad, but they are always made by resident institutional units, that is households or institutions residing in the Netherlands. By definition only households, non-profit institutions serving households (NPISHs) and government institutions consume. Enterprises do not: expenses they make on goods and services are thought to serve production and are therefore classified as intermediate consumption of fixed capital formation. The general government is a special case. The government also has intermediate consumption, just like enterprises. But the output delivered by the government which is not directly paid for, non-market output (like safety), is classified as consumption by the general government. It is said that the government 'consumes its own production'. The system of national accounts demands that all that is produced is also consumed (or serves as an investment). By convention, government output is consumed by the government itself. This is not the only consumption by the general government. It also contains social transfers in kind. In the Netherlands this mainly concerns health care bills paid for by the government and an allowance for the rent.

Total

Households

Consumption expenditure by households and non-profit institutions serving households (NPISHs). Not all expenses made by households are seen as consumptive, households may invest as well. These investments mainly concern the purchase of houses and substantial costs on maintenance. Small costs on maintenance, indoor painting and the purchase of furniture is classified as consumption. This also applies to the purchase of cars and car maintenance.

General government

Consumption expenditure by the general government sector. The output delivered by the government which is not directly paid for, non-market output (like safety), is classified as consumption by the government. It is said that the government 'consumes its own production'. The system of national accounts demands that all that is produced is also consumed (or serves as an investment). By convention, government output is consumed by the government itself. This is not the only consumption by the general government. Purchases by general government of goods and services produced by market producers that are supplied to households as social transfers in kind are part of government consumption as well. Examples of this in the Netherlands are health care bills paid for by the government and an allowance for the rent.

Government output consumed by the government is classified into collective consumption and individual consumption. Collective consumption by the government consists of services for collective consumption that are provided simultaneously to all members of the community. Examples of this are expenses on defense, environmental health or public governance. Individual consumption is made up of expenses that serve only part of the community. This concerns mainly education.

Gross capital formation

Gross capital formation consists of:
a)rExpenditure on produced assets that are used in a production process for more than one year. This may concern a building, dwelling, transport equipment or a machine. This in contrast with goods and services which are used up during the production process, the so-called intermediate use (e.g. iron ore). Fixed capital does lose value over time as a result of normal wear and tear and obsolescence. This is called consumption of fixed capital (also called depreciation). The value of fixed capital formation in which the consumption of fixed capital is not deducted is called gross fixed capital formation. Deduction of the consumption of fixed capital results in net fixed capital formation.
b) changes in inventories.
c) acquisitions less disposals of valuables.

Exports of goods and services

Transactions in goods and services (sales, barter and gifts) from residents (in the Netherlands) to non-residents. Exports of goods occurs when economic ownership of goods is passed from residents to non-residents. This applies irrespective of corresponding physical movements of goods across frontiers. An enterprise or institution is considered residential after it has been active in the Netherlands for at least one year. This applies irrespective of the question whether the enterprise or institute has foreign owners.

Total

Exports of goods from domestic prod.

Exports of goods from domestic production.

Re-exports

Goods that were imported before being exported, after having received at most minor adaptations.

Services

Transactions in services (sales, barter and gifts) from residents (in the Netherlands) to non-residents. Exports of goods occurs when economic ownership of goods is passed from residents to non-residents. Exports of services include among others the following cases: transportation by resident carriers abroad, harbour services and ship maintenance to non-residents, works performed abroad by resident contractors. Expenses made in the Netherlands by foreign tourists, diplomats and cross-border workers.