Source
Source Contact person/organisation Contact person/organisationIn this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Data Characteristics Data Characteristics Other data characteristics Other data characteristicsGross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period minus the value of imports. While GDP is the single most important indicator to capture these economic activities, it is not a good measure of societies' well-being and only a limited measure of people's material living standards. The sections and indicators that follow better address this and other related issues and this is one of the primary purposes of this publication.
Countries calculate GDP in their own currencies. In order to compare across countries these estimates have to be converted into a common currency. Often the conversion is made using current exchange rates but these can give a misleading comparison of the true volumes of final goods and services in GDP. A better approach is to use purchasing power parities (PPPs). PPPs are currency converters that control for differences in the price levels of products between countries and so allow an international comparison of the volumes of GDP and of the size of economies.
The most important changes stemming from the implementation of the 2008 SNA relate to the delineation of what is considered as investment, known as gross fixed capital formation (GFCF) in the national accounts. According to the 2008 SNA, research and development (R&D) and military weapons systems (warships, submarines, military aircraft, and tanks, etc.) are now recorded as GFCF. This is in recognition that these expenditures provide long lasting services to the businesses, non-profit institutions, and governments who use them. Moreover, when changes in international standards are implemented countries often take the opportunity to implement improved compilation methods- therefore also implementing various improvements in sources and estimation methodologies. In some countries the impact of the ‘statistical benchmark revision' could be higher than the impact of the changeover in standards. As a consequence the GDP level for the OECD total increased by 3.8% in 2010.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
What does gross domestic product mean? "Gross" signifies that no deduction has been made for the depreciation of machinery, buildings and other capital products used in production. "Domestic" means that it is production by the resident institutional units of the country. The products refer to final goods and services, that is, those that are purchased, imputed or otherwise, as: final consumption of households, non-profit institutions serving households and government; fixed assets; and exports (minus imports).
GDP at market prices can be measured in three different ways:
- as output less intermediate consumption (i.e. value added) plus taxes on products (such as VAT) less subsidies on products;
- as the income earned from production, equal to the sum of: employee compensation; the gross operating surplus of enterprises and government; the gross mixed income of unincorporated enterprises; and net taxes on production and imports (VAT, payroll tax, import duties, etc., less subsidies);
- or as the expenditure on final goods and services minus imports: final consumption expenditures, gross capital formation, and exports less imports.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
Comparability is good but in some countries, for example in specific areas such as the own account production of software or financial intermediation services (indirectly measured) (FISIM), differences remain, which can have an impact on comparisons of GDP. The measurement of the non-observed economy (NOE, often referred to as the informal, grey or shadow economy) can also have an impact on comparability, although for OECD economies, in general, this is not thought to be significant). The 2008 SNA, as did the earlier standards the 1993 SNA, recommends that illegal activities should be accounted for in GDP (illegal activities are a component of the NOE). With the introduction of the ESA 2010, the European equivalent of the SNA, European countries are required to account for illegal activities in GDP, which should allow for better comparability.
Chile, Japan and Turkey's data refer to 1993 SNA, which can hamper comparisons across OECD countries.
For some countries, the latest year has been estimated by the OECD. Historical data have also been estimated for those countries that revise their methodologies but only supply revised data for some years. This estimation process mechanically links the new and old series to preserve growth rates.
In China, GDP refers to producers' prices.
In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Gross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period minus the value of imports. While GDP is the single most important indicator to capture these economic activities, it is not a good measure of societies' well-being and only a limited measure of people's material living standards. The sections and indicators that follow better address this and other related issues and this is one of the primary purposes of this publication.
Countries calculate GDP in their own currencies. In order to compare across countries these estimates have to be converted into a common currency. Often the conversion is made using current exchange rates but these can give a misleading comparison of the true volumes of final goods and services in GDP. A better approach is to use purchasing power parities (PPPs). PPPs are currency converters that control for differences in the price levels of products between countries and so allow an international comparison of the volumes of GDP and of the size of economies.
The most important changes stemming from the implementation of the 2008 SNA relate to the delineation of what is considered as investment, known as gross fixed capital formation (GFCF) in the national accounts. According to the 2008 SNA, research and development (R&D) and military weapons systems (warships, submarines, military aircraft, and tanks, etc.) are now recorded as GFCF. This is in recognition that these expenditures provide long lasting services to the businesses, non-profit institutions, and governments who use them. Moreover, when changes in international standards are implemented countries often take the opportunity to implement improved compilation methods- therefore also implementing various improvements in sources and estimation methodologies. In some countries the impact of the ‘statistical benchmark revision' could be higher than the impact of the changeover in standards. As a consequence the GDP level for the OECD total increased by 3.8% in 2010.
Definition
What does gross domestic product mean? "Gross" signifies that no deduction has been made for the depreciation of machinery, buildings and other capital products used in production. "Domestic" means that it is production by the resident institutional units of the country. The products refer to final goods and services, that is, those that are purchased, imputed or otherwise, as: final consumption of households, non-profit institutions serving households and government; fixed assets; and exports (minus imports).
GDP at market prices can be measured in three different ways:
- as output less intermediate consumption (i.e. value added) plus taxes on products (such as VAT) less subsidies on products;
- as the income earned from production, equal to the sum of: employee compensation; the gross operating surplus of enterprises and government; the gross mixed income of unincorporated enterprises; and net taxes on production and imports (VAT, payroll tax, import duties, etc., less subsidies);
- or as the expenditure on final goods and services minus imports: final consumption expenditures, gross capital formation, and exports less imports.
Comparability
Comparability is good but in some countries, for example in specific areas such as the own account production of software or financial intermediation services (indirectly measured) (FISIM), differences remain, which can have an impact on comparisons of GDP. The measurement of the non-observed economy (NOE, often referred to as the informal, grey or shadow economy) can also have an impact on comparability, although for OECD economies, in general, this is not thought to be significant). The 2008 SNA, as did the earlier standards the 1993 SNA, recommends that illegal activities should be accounted for in GDP (illegal activities are a component of the NOE). With the introduction of the ESA 2010, the European equivalent of the SNA, European countries are required to account for illegal activities in GDP, which should allow for better comparability.
Chile, Japan and Turkey's data refer to 1993 SNA, which can hamper comparisons across OECD countries.
For some countries, the latest year has been estimated by the OECD. Historical data have also been estimated for those countries that revise their methodologies but only supply revised data for some years. This estimation process mechanically links the new and old series to preserve growth rates.
In China, GDP refers to producers' prices.