National accounts present data on economic activities taking place in a given geographic area over a period of time. The best known component of national accounts is gross domestic product (GDP), which is widely considered to be a key indicator of the health of an economy. National accounts also provide valuable information about the structure of an economy, and can include a range of other economic indicators.
The System of National Accounts 2008 (SNA 2008), published by the United Nations, sets standards for the compilation of national accounts. Falkland Islands national accounts have, as far as possible, been prepared in line with these standards. However, due to limitations on data availability and statistical resource, the Policy Unit does not compile a full set of national accounts as defined in SNA 2008. Work has focussed on compiling a production account and a generation of income account.
Gross Domestic Product measures the amount of economic activity occurring within a defined territory and time-frame. The gross domestic product of an economy is equal to the sum of the gross value added by each institutional unit (i.e. each company, household etc.) within that economy.
GDP estimates can be presented at both current (nominal) and constant (real) prices. Current price estimates of GDP are compiled using prices prevailing in the year of measurement. For example, current price GDP for 2010 is compiled using 2010 prices to value the goods and services produced in that year, and current price GDP for 2011 values that year’s output using 2011 prices. Changes in GDP at current prices are thus composed of changes in the volume of goods and services provided and changes in the prices of those goods and services. This makes current price GDP a poor measure of changes in the size of an economy (although for economies like the Falkland Islands that engage in large scale trade with the rest of the world, the prices received for export goods are clearly important for economic well being).
For more information, please contact:
Davide Ranghetti, Chief Economist & Economic Policy Adviser
Phone: +500 28429