Description of methods and sources for Albania - INSTAT

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IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeAs the data sources are not available, in 2006, Household and NPISH FinalConsumption Expenditure are calculated by extrapolations of the previous year data.For the expenditure approach of GDP, estimation is not a benchmarking year untilnow.5.6 Main approaches taken with respect to exhaustivenessAdjustments to the expenditure approach to ensure exhaustiveness are made forcalculation of Construction work in Gross Fixed Capital Formation.Construction Activity by production side in Albanian National Accounts is dividedinto:- Observed Output- Non- Observed OutputData for the Gross fixed Capital Formation in construction were provided byProduction Enterprises.The GFCF in construction is equal with the value of construction output multipliedby the share of revenues from construction activity in total revenues of constructionenterprises. This adjustment is made on the basis of data from financial statements ofenterprises.No exhaustiveness adjustments are made for other elements of expenditures.5.7 Household final consumption expenditureThis section describes the measurement of final consumption expenditure ofAlbanian resident households. Their consumption expenditures cover the purchasesof all goods and services, including housing services, to meet their requirements forday-to-day living. It does not include the purchase of dwellings or expenditure onvaluables (antiques and some jewelry), which are part of capital formation, nor doesit include any expenditure on goods or services for use in a business.In Albanian National Accounts, as in other countries, Household ConsumptionExpenditure is the main component of expenditure side, with the largest part, about78 % in 2006, to the total GDP.In 1998, HBS was conducted for the first time. It covered only Tirana city.Then, in 2000, the second HBS was conducted covering Tirana city and other urbanareas, with a coverage of 5,389 households.HBS was conducted in 2006-2007 covering the entire Albanian territory, with 5600households. It was not used until now for the estimation of HFC. Next year, when2008-2009 HBS will be conducted, the information will be incorporated in the HFCestimations.The actual methodology of the HBS is presented in the annex E.90/236
IPA 2009 Multi-beneficiary StatisticalCooperation ProgrammeFor 2006 calculations of HFC, data sources were very limited and for this reason theestimation was based on the data from the previous year and the growth rate of theservices output for households (transport, trade). The base year for these calculationswas 2001 using data from the HBS 2000, but this covered only Tirana city and otherurban areas.For the 2004 data, given the lack of basic information, Twinning Projectrecommended to estimate final consumption of household by using the commodityflow approach. The starting point of the procedure used in the grossing up of theeconomic data relative to final household consumption is to assume the GDP (orOutput) measured by production approach.The equation that synthesizes the commodity flow approach can be expressed in thefollowing way, considering the rows in the input-output table:C = (X+ M) - (N + I + G + E)WhereC =Final consumption (Households, General Government and NPSHs)X = Output,M = Import,N = Intermediate consumption,I = Gross fixed capital formation,G = Change in inventories,E = Export.The next step consists in obtaining the household final consumption (FC) from C:FC = C – (GC + NPSHs)Where:GC = Consumption of General Government,NPSHs = Non Profit Organizations.By adopting this procedure it is possible to obtain an estimate of FC and to comparethis measure with the data obtained from other sources.In 2006, HCE is calculated by multiplying the year before (2005) with the annualgrowth of main services. This was the way used also for calculating the 2005 data ofHCE.For example: HCE 2005 (634470) * Value Index of main services (1.072) = HCE2006 (680322)All household expenditures series produced for the national accounts are calculatedper annum.91/236
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Description of methods and sources for Albania - INSTAT

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