Landshagir - 01.11.2010, Page 253

National accounts
LANDSHAGIR 2010 STATISTICAL YEARBOOK OF ICELAND 2010
13
253
National accounts are a coherent, consist­
ent and integrated set of macroeconomic
accounts, balance sheets and tables
based on a set of internationally agreed
concepts, definitions, classifications
and accounting rules. National accounts
provide a comprehensive accounting
framework within which economic data
can be compiled and presented in a format
that is designed for purposes of economic
analysis, decision­taking and policy­
making.
Gross Domestic Product
The core item is the Gross Domestic
Product (GDP) which can be reached
through two main approaches, the
expenditure approach and the produc­
tion approach. The main components
of the expenditure approach are house­
hold and government consumption, gross
fixed capital consumption and exports
and imports where the output approach
presents the value added by individual
industries.
International standards
In order to ensure inter­temporal and
international comparability the national
accounts are compiled according to inter­
national standards. The Icelandic national
accounts are compiled according to the
European version of the United Nations
System of National Accounts (SNA 1993),
that is ESA 95. For further information
on methods applied see Gross National
Income Inventory (ESA95) 2008.
GDP deacreased in 2009
The Gross Domestic Product (GDP)
decreased by 6.8% in real terms in 2009.
The decrease in GDP during 2009 is due to
a 20.9% decline in domestic expenditure.
Household final consumption decreased
by 16%, government final consumption
by 1.7% and fixed capital formation by
50.9%. At the same time, exports grew
by 7.4% while imports declined by 24.1%.
This resulted in a considerable improve­
ment in the balance on goods and services,
from a deficit of 42 billion ISK in 2008 to a
surplus of 132 billion ISK in 2009.
The positive change in the balance of trade
together with a smaller deficit in primary
income from abroad, resulted in a current
account deficit of 25 billion ISK, 1.6%
of GDP. In 2008 the balance on current
account was negative by 324 billion ISK,
21.9% of GDP. Terms of trade deteriorated
by 4.7% of GDP in 2009 from the previ­
ous year, having a similar impact on Gross
National Income (GNI). Due to improve­
ments on the balance on current account
the GNI decreased by 2.1% compared with
a 15.4% decrease in 2008.
Lowest share of gross fixed capital
formation ever
In 2009 the share of household final
consumption of GDP was at a record low,
or 51%. Government final consumption
amounted to 26% of GDP, somewhat higher
than the previous five years and also
historically high. The share of gross fixed
capital formation was 14% of GDP in 2009.
This is the lowest share ever. A compa­
rable figure for the OECD total has been
around 20% during the last quarter of
the century. In volume terms, gross fixed
capital formation in 2009 was at the same
level as in 1997.