Ch15 National Income Statistics and GDP

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What do national income statistics measure?

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National income statistics measure the total output, income, and expenditure in an economy.

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What is GDP?

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GDP is the total output produced in an economy.

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What is net property income from abroad?

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Net property income from abroad are receipts earned on the ownership of foreign assets minus payments on such receipts to non-residents. Typical receipts are rent, interest, profits, and dividends.

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What additional items does net income from abroad cover?

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Net income from abroad covers additional items such as workers’ earnings and non-financial property income from things such as patents and copyrights.

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How are indirect taxes and subsidies treated in national income statistics?

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NI at factor cost = NI at market price - indirect tax + subsidy

NI is national income.

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How is depreciation treated in national income statistics?

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The value of depreciation or capital consumption is deducted from gross values to give net values.

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How is Net Property Income from Abroad (NPIA) calculated?

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Net Property Income from Abroad (NPIA) = GNP – GDP. For example, with GNP estimated at $301,779m, NPIA is $17,569m.

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How is Net Income from Abroad calculated?

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Net Income from Abroad = GNI - GDP. For example, it is $47,154m.

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What is the sectoral composition of Pakistan's GDP?

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Pakistan’s GDP is heavily weighted towards the service sector (57%), with agriculture still important (18%), and a relatively low manufacturing sector. Other sectors are relatively insignificant.

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What are some difficulties in collecting national income data?

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Difficulties include estimating output, income, or expenditure of the subsistence agricultural sector, non-monetarised activities, logistical problems, and corruption reducing the size of estimates.