GDP By Income and Expenditure Approach – Basic Price GDP Declines by 2.3% in Q3’16 – NBS

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GDP By Expenditure

The Gross Domestic Product (GDP) can be derived as the value of all goods and services available for final uses and export. GDP at market prices includes net taxes on products; this is subtracted to obtain basic price GDP.

The expenditure approach measures the final uses of the produced output as the sum of Final consumption, Gross Capital Formation and Exports less Imports, which are considered in turn in this chapter. Consumption of fixed capital—a measure of depreciation of assets—comprises the difference between Gross Domestic Product (GDP) and Net Domestic Product (NDP) and is also considered in this chapter.

Basic price GDP declined by 2.3% in real terms in the third quarter of 2016,, considerably lower than the declines of 0.7% and 1.5% in the first and second quarter respectively.  Market price GDP declined even more, by 2.4%, as a result of slower growth in net taxes on products of 5.0%.

Household Final Consumption Expenditure

This consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services.

General Government Final Consumption Expenditure

This consists of expenditure, including imputed expenditure, incurred by government at all levels on both individual and collective consumption goods and services. Individual consumption items are those that are provided to individual households, such as education and health services. Collective consumption items relate to goods and services utilised by society as a whole, such as security and infrastructure.

Not for Profit Institutions Serving Households Final Consumption Expenditure

This consists of expenditure, including imputed expenditure, incurred by government at all levels on both individual and collective consumption goods and services. Individual consumption items are those that are provided to individual households, such as education and health services.

Gross Fixed Capital Formation

This is measured as the total value of producer’s acquisitions, less disposals, of fixed assets during the accounting period, plus certain additions to the value of non-produced assets (such as improvements to natural assets) realised by the productive activity of institutional units.

Change in Inventories

is the consist of changes in; stocks of outputs that are still held by units that produced them prior to their being further processed , sold, delivered to other units or used in other ways, measure by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.

Exports of Goods and Services

Consists of sales of goods and services to residents abroad, to residents within Nigeria.

Imports of Goods and Services

Consists of sales of goods and services from residents abroad, to residents within Nigeria.

Consumption of Fixed Capital

This represents the reduction in value of the fixed assets used in production during the period, that results from physical deterioration, normal obsolescence or normal accidental damage.

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(ProshareNg)