Landshagir - 01.11.2012, Page 241

National accounts
LANDSHAGIR 2012 STATISTICAL YEARBOOK OF ICELAND 2012
13
241
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 compre-
hensive accounting framework within
which economic data can be compiled and
presented in a format that is designed for
purposes of economic analysis, decision-
making and policy-making.
Gross Domestic Product
The core item is the Gross Domes-
tic Product (GDP) which can be reached
through two main approaches, the expen-
diture approach and the production
approach. The main components of the
expenditure approach are household and
government consumption, gross fixed
capital consumption and exports and
imports where the output approach pres-
ents the value added by individual indus-
tries.
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),
i.e. ESA 95. For further information on
methods applied see Gross National
Income Inventory (ESA95) 2008.
The GDP increased by 2.6% in 2011
The national accounts for 2011 show a 2.6%
increase in Gross Domestic Product (GDP)
in real terms. In 2010, GDP decreased by 4%
and by 6.6% in 2009.
In 2011, domestic expenditure increased
by 3.8%. Household final consumption
increased by 2.7% and gross fixed capital
formation by 12.8%, while government
final consumption decreased by 0.9%. At
the same time, exports grew by 4.1% and
imports by 6.8%. This resulted in a surplus
in the balance on goods and services of
139 billion ISK in 2011 compared with 155
billion ISK in 2010.
The growth in gross fixed capital forma-
tion is partly due to imports of ships and
aircraft, with marginal impact on GDP.
Excluding imports of ships and aircraft,
gross fixed capital formation increased by
7.2% in 2011.
Despite a decrease in the balance of trade
surplus in 2011, a lower deficit in primary
income from abroad resulted in a lower
current account deficit, 105 billion ISK or
6.4% of GDP, compared with 114 billion ISK
or 7.5% of GDP in 2010.
During 2011, the terms of trade deterio-
rated by 1% of GDP from 2010, having a
similar impact on Gross National Income
(GNI). Despite this development the
improvements on the balance on current
account lead to a 4.7% growth in GNI
compared with a 1.6% increase in 2010.
Household final consumption increases
In 2011, the share of household final
consumption of GDP was 51.9%. Up until
2008 this share was usually higher, ranging
from 55–60%, but since then it has dimin-
ished considerably. Government final
consumption amounted to 25.3% of GDP,
slightly lower than 2010, 25.9%.
The share of gross fixed capital forma-
tion was 14% of GDP in 2011, experiencing
a historically low share for the last three
years. A comparable figure for the OECD
total has been around 20% during the last
quarter of the century. In real terms, gross
fixed capital formation in 2011 was at the
same level as in 1997.