Landshagir - 01.11.2013, Page 249

National accounts
LANDSHAGIR 2013 STATISTICAL YEARBOOK OF ICELAND 2013
13
247
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 formation 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),
i.e. ESA95. For further information on
methods applied see Gross National
Income Inventory (ESA95) 2008.
The GDP increased by 1.4% in 2012
The national accounts for 2012 show a 1.4%
increase in Gross Domestic Product (GDP)
in real terms. In 2011, GDP increased by
2.7% and decreased by 4.1% in 2010.
In 2012 domestic expenditure increased
by 1.6%. Household final consump-
tion increased by 2.4% and gross fixed
capital formation by 5% while govern-
ment final consumption decreased by
1.4%. At the same time, exports grew by
3.8% and imports by 4.7%. This resulted in
a surplus in the balance of trade in goods
and services of 104 billion ISK in 2012
compared with 136 billion ISK in 2011.
The growth in gross fixed capital forma-
tion is mostly due to imports of ships and
aircraft, that only have a marginal impact
on GDP. Excluding ships and aircraft,gross
fixed capital formation decreased by 4.1%
in 2012.
Despite a decrease in the balance of trade
surplus in 2012 a lower deficit in primary
income from abroad resulted in a lower
current account deficit, 84 billion ISK or
4.9% of GDP, compared to 95 billion ISK or
5.8% of GDP in 2011.
During 2012 the terms of trade deterio-
rated by 2.2% of GDP of the previous year
having a similar impact on Gross National
Income (GNI). Despite this develop-
ment the improvements in the current
account balance led to 2.9% growth in GNI
compared to a 5.8% increase in 2011.
Household final consumption 53.7% of GDP
In 2012 the share of household final
consumption of GDP was 53.7%. Up to 2008
this share used to be higher, in the range
of 55-60%, but since then it has diminished
considerably. Government final consump-
tion amounted to 25.3% of GDP, almost the
same as 2011, 25.4%.