Quarterly national accounts; values 1988-Q1 2014

Table explanation

Description topics

Production approach to GDP

The composition of GDP from the value added of all economic activities is
provided in this part.
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.

Difference imputed and paid VAT

Imputed VAT differs from VAT actually paid to the government.
This is due to acquittals, bad debts, fines, the Regulation for small
entrepreneurs and VAT evasion.
The difference imputed and paid VAT is not distributed over industries. On
the level of the total economy it is added to GDP (and the operating
surplus / mixed income).

Gross domestic product

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).
The volume changes of gross domestic products is the measure for
economic growth.

Income approach to GDP

The income approach of gross domestic product is provided in this part of
the table.
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)

Compensation of employees

Compensation of employees is the total remuneration paid by employers to
their employees in return for work done. Employees 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 compensation 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
Net operating surplus / mixed income remains after deducting consumption
of fixed capital from gross operating surplus /mixed income.
Gross operating surplus by industry is the balance that remains after
deducting from the value added (basic prices) the compensation of
employees and the balance of other taxes and subsidies 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 domestic product

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 calculating 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

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).
The volume changes of gross domestic products is the measure for
economic growth.