Landshagir - 01.11.2014, Page 285

National accounts
LANDSHAGIR 2018 STATISTICAL YEARBOOK OF ICELAND 2018
13
285
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
while 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 2008),
i.e. ESA2010, which was implemented
in all countries of the EEA in September
2014. For further information on methods
applied see Gross National Income Inven-
tory (ESA95) 2008.
3.5% growth in GDP in 2013
The revised annual national accounts
for 2013 show a 3.5% increase in Gross
Domestic Product (GDP) in real terms.
The economic growth in 2013 is mainly
driven by a large surplus in the balance of
trade while the domestic final expenditure
decreased slightly or by 0.3%.
Household and government final
consumption increased by 0.8%
respectively while gross fixed capital
formation decreased by 2.2%. At the same
time, exports grew by 6.9% and imports
by 0.4%. This resulted in a 156 billion ISK
surplus in the balance of trade in goods
and services in 2013.
The increased surplus in the balance of
trade in 2013 and much lower deficit in
primary income from abroad according to
figures from the Central bank of Iceland
resulted in a large current account surplus,
121 billion ISK or 6.5% of GDP, compared
to current account deficit of 60 billion ISK
or 3.4% of GDP in 2012. This is the highest
surplus recorded since the compilation of
national accounts started in Iceland in 1945
and only in six cases since 1980 has this
balance actually been positive.
During 2013 the terms of trade
deteriorated by 1.1% of the GDP of the
previous year having a similar impact on
Gross National Income (GNI). Despite
this development the improvements in
the current account balance led to 11.2%
growth in GNI.
Household final consumption 52.7% of GDP
In 2013 the share of household final
consumption of GDP was 52.7%. Until 2008
this share used to be higher, in the range
of 55–61%, but since then it has diminished
considerably. Government final consump-
tion amounted to 24.3% of GDP, almost the
same as 2012, 24.4%.