Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeCHAPTER 3: PRODUCTION APPROACH3.0 GDP according to the production approachThe compilation process of GDP by production approach can be summarized in two steps.In the first step gross value added at basic prices of all branches is estimated as thedifference between output at basic prices and intermediate consumption at purchases’prices less financial services indirectly measured FISIM. In the second step taxes onproducts are added (this step is launched because we don’t have an actual detailed level ofthe origin of the taxes) and subsidies on products are subtracted from the sum of grossvalue added of all branches to obtain GDP at market prices. The table below shows maincategories of GDP by the production approach.7Table 3.1: GDP by the production approach, 2006Main CategoriesIn Million LEKOutput at basic prices 1 525 496Less: intermediate consumption at purchasers’ prices 730 311Less: financial services indirectly measured FISIM 30 446Gross value added at basic prices 764 739Plus: taxes on product 121 188Less: subsidies on products 3 718Gross domestic product at market prices 882.209____________________________________________________________________GDP by production approach is prepared as an independent estimate covered by exhaustivedata sources (financial activities, post and communication, electricity, publicadministration, public education, public health, and for all activities with enterprises ofmore than 5 employees) and also sample surveys data sources for all sectors of theeconomy. The main data sources are available by the beginning of October each year andthe first estimations of annual GDP (preliminary data) by the production approach arefinalized by end of November at the level of 25 activities. Annex C illustrate in more detailthe main classification used in the process of compilation by production approach. A tableis provided below showing the breakdown of GDP for year 2006, according to theproduction approach by main industries, in millions of LEK:21/236