Quarterly national accounts; changes

Table explanation

Description topics

Production approach to GDP

The composition of GDP from the value added of all economic activities is
provided in this chapter.
Gross domestic product at market prices (GDP) is calculated as follows:
total value added at basic prices of industries
plus: balance of taxes and subsidies on products
plus:
VAT, taxes on imports, subsidies on re-exports cannot be attributed to
individual industries. Therefore, GDP at market prices cannot be broken
down completely by industry.
Data of total value added available from 1995 q1.
Other components from 1995 q1.

Taxes less subsidies on products

Taxes on products less subsidies on products.
Taxes on products
Taxes on products are related to the value or the volume of
products. They are levied on domestically produced or trans-
acted products and on imported products.
Taxes on products are classified into taxes on domestic prod-
ucts, taxes on imports and VAT.
Subsidies on products
Subsidies on products are related to the value or the volume of
products. They can be distinguished between subsidies on do-
mestic products and subsidies on imports.

Consumption of imputed bank services

The imputed bank services produced by banks are not distrib-
uted over use categories. On the level of the total economy the
use of these services is deducted from GDP (and the operating
surplus / mixed income).

Gross domestic product, market prices

GDP is the total amount of domestic generated goods and services
(expenditure approach). It is also the sum of value added in all branches
of economic activities (production approach) and the total generated
income in the Netherlands (income approach).

Income approach to GDP

The income approach of gross domestic product is provided in this chapter
of the publication.
Scheme:
Compensation of employees (+)
Operating surplus (net) (+)
Tax on productions and imports (+)
Subsidies (-)
= Gross domestic product (net)
Consumption of fixed capital (+)
= Gross domestic product (gross)
Data available from 1995 q1.

Compensation of employees

Compensation of employees is the total remuneration paid by
employers to their employees in return for work done. Employ-
ees are all residents and non-residents working in a paid job.
Managing directors of limited companies are considered to be
employees; therefore their salaries are also included in the com-
pensation of employees. The same holds for people working in
sheltered workshops.
Compensation of employees is distinguished between wages
and salaries and employers' social contributions.

Operating surplus (net)

Operating surplus / mixed income
Gross operating surplus by industry is the balance that remains
after deducting from the value added (basic prices) the compen-
sation of employees and the balance of other taxes and subsi-
dies on production. The operating surplus of family enterprises is
called mixed income, because it also contains compensation for
work by the owners and their family members.
On the level of the total economy operating surplus is computed
by adding to the total of the industries the difference imputed
and paid VAT and by deducting the consumption of imputed
bank services.
Net operating surplus / mixed income remains after deducting
consumption of fixed capital from gross operating surplus /
mixed income.

Taxes less subsidies

Taxes on production and imports less subsidies.
Taxes on production and imports
Taxes on production and imports are compulsory payments to
the government and the European Union (EU), which are related
to production, imports and to the use of production factors.
Taxes on production and imports are classified into taxes on
products and other taxes on production.
Subsidies
Subsidies are current payments from the government or the EU
to producers with the objective to influence output prices, em-
ployment or the remuneration of production factors. Subsidies
are distinguished between subsidies on products and other sub-
sidies on production.

Net domestic product market prices

Net domestic product at market prices is the sum of the compensation of
employees, the net operating surplus and the difference between taxes on
production and imports and the subsidies.

Consumption of fixed capital

Consumption of fixed capital represents the depreciation of the
stock of produced fixed assets, as a result of normal technical
and economical ageing and insurable accidental damage.
Losses due to catastrophes and unforeseen ageing are seen as
a capital loss.
Consumption of fixed capital is calculated on the basis of the
perpetual inventory method (PIM). This method starts with cal-
culating the replacement value of the stock of produced fixed
assets at the beginning of a year. This is done by correcting the
value of this stock for price changes that occur in that year for
comparable fixed assets. Subsequently, fixed capital formation is
added and the value of discarded fixed assets is deducted from
the stock. This leads to an estimation of the value of the stock of
produced fixed assets at the end of the year. For each type of
asset, consumption of fixed capital is calculated by dividing its
average annual value by its expected life span.
This method may differ considerably from the method used to
calculate depreciation in business accounts, which is based on
historical costs or fiscal life span.

Gross domestic product (market prices)

GDP is the total amount of domestic generated goods and services
(expenditure approach). It is also the sum of value added in all branches
of economic activities (production approach) and the total generated
income in the Netherlands (income approach).