Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeCHAPTER 12: METHODOLOGIES BY PRODUCTIn Albanian system of National Accounts the compilation of GDP at constant pricesis done by industries and not by products. This chapter provides a detaileddescription of methods used for measuring output and intermediate consumption atconstant prices by the industry in Albania. According to Eurostat’s ”Handbook OnPrice and Volume Measures in National Accounts” the method that can be used forthe estimation of prices and volumes is the Method B.12.1 Method used for Output and Intermediate consumption by industries12.1.1 Agriculture and FishingIn general, for each product in agriculture and for each year, the data on output andintermediate consumption in quantity and in prices are available. The estimates of theOutput and the Intermediate Consumption at prices of the previous year are obtainedby multiplying the quantity at time t with prices of time t-1.The value of output and intermediate consumption at current prices are:Output (t) = Production (t) * Price (t)IC (t) = IC (t) * Price (t)And the output and intermediate consumption at prices of previous year are:Output p-1 t = Production (t) * Prices (t-1).IC p-1 t = IC (t) * Prices (t-1).12.1.2 IndustryThe deflation of Output and Intermediate ConsumptionA methodology for a separate deflation of output for domestic use and for export canbe applied if the PPI includes only the prices of output devoted to the domesticmarket and excludes the prices of exported goods. In our case the exported goods areincluded in PPI and for this reason the following methodology is used by this way:Calculation of Output and Intermediate Consumption, at prices of previousyear, for each branchesGiven the existing following information:PPI = production price index;OUT = output;IC = intermediate consumption;147/236