Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammePART B PRICE AND VOLUME MEASURESCHAPTER 10: GENERAL PROCEDURESThe compilation of GDP by production approach at constant prices is the mostimportant one in determining the volume growth of annual GDP in Albania. TheGDP at constant prices is measured from production side as the GVA by industry,i.e., the total sum of value added of all the economic activities at constant prices plusnet indirect taxes on products at constant pricesTaking into account the availability of price / volume indices, different methods fordeflation were used; mainly the single extrapolation of value added with the volumeindex of output and not double deflation.As regards the compilation of constant prices, chaining index is used which meansthe use of prices of the previous year. Also we have implemented the constant priceswith the base year in order to support the estimation of quarterly GDP at constantprices which use the year 2005 for the base year index.GDP at constant prices from the expenditure approach is equal to the sum ofHousehold consumption expenditure at constant prices, government and Non-ProfitInstitutions Serving Household consumption expenditure at constant prices, Grossfixed capital formation and net exports at constant prices. Changes in inventories atconstant prices are derived as residual together with the Statistical Discrepancies.Constant price estimates can be derived by deflation or by extrapolation, but the mostcommon practice is to derive a constant price estimate by deflating the current priceestimates.The following table indicates the value of GDP of the year 2006, expressed in pricesof previous year, for output, intermediate consumption and value added by mainindustries.131/236