Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeCHAPTER 19: GDP COMPONENTS: EXPENDITUREAPPROACHAs we mentioned above, for the moment this sector produces only Quarterly GDP byproduction approaches. With regard to the expenditure approach, we have not startedto do something concretely. Calculations of the expenditure side are now consideringonly the expenses on final goods and services. Gross domestic product byexpenditure side is the sum of total consumption, gross fixed capital formation,change in inventories and net export of goods and services.QGDP e = C + I + (E X – I M ) + DWhere:C => total consumption which includes:I => Gross fixed capital formationE X – I M => net export or (export – import)D => change in inventories19.1 ConsumptionTotal consumption includes: Final consumption of households (CH) Final consumption of general government (C G ) Final consumption of non-profit institutions servinghouseholds (NPISH), (C N )19.1.1 Final consumption of householdsFor C H, sources data are very poor and those that exist (HBS and LSMS data) areonly annual. So it is difficult for the moment to estimate it in a quarterly form untilquarterly surveys will be conducted. Anyway, something can be done to estimate it.We can use the volume indexes on retail trade to benchmark the annual C H and tohave a quarterly series in this respect19.1.2 Final consumption of general governmentTo estimate C G, administrative data provided by the Ministry of Finance can be used.These data are provided on the basis of quarterly frequencies so this part ofconsumption can be conducted. Government consumption is the sum of:Compensation of government employees + purchases by government of materialsand other intermediate consumption items + consumption of government for fixedcapital + the purchases of goods and services by the government for the benefit of +other taxes on production - partial payments by households or companies for servicesprovided by government.169/236