Patan Campus, T.U.

Ishwori Prasad Bhandari

Director
Central Bureau of Statistics
 What is National Accounts
 System of National Accounts (SNA)
 GDP and Other major macro economic
Indicator
 GDP compilation practices in Nepal
 Some economic performance indicators
 National accounts Statistics
 Government Finance Statistics
 Balance of Payments Statistics (ROW)
 External Debt
 International Trade
 International Investment Position
 Money and Banking Statistics
 Price Statistics
Statistical description of
 Economic activities
(Production Income Consumption Saving Investment
Imports/Exports )

 within defined economic territory

(State Region Country Union)

 performed in designated time frame

(Annual Infra annual)
An accounting framework
 To create a macroeconomic data base

 To analyze, evaluate the performance of

 the economy

 Monitoring the behavior of the economy

 Macroeconomic analysis

 International comparisons
System of National Accounts(SNA)

 a comprehensive guide for the

compilation of GDP with flexibility.
1st in 1953
with 3 consecutive revisions: 1968, 1993 & 2008
SNA 2008 in recent use in Nepal
 regional and international comparability
 Concepts and definition
 Methodology
 Classifications(HS,ISIC,CPC,
COFOG,GFS,..)
 Internationally agreed standard set of
 recommendations on how to measures
the economic activities
 In accordance with strict accounting
conventions
 Based on economic principles
A comprehensive, consistent and integrated set of
macroeconomic accounts, balance sheet and tables
based on a set of internationally agreed concepts,
definitions, classifications and accounting rules
 comprehensive: all activities, all agents covered

 consistent: identical values are used to establish

the consequence of a single action on all actors

 integrated: all consequence of a single action by

one agent are reflected in the accounts, including

wealth and balance sheets.
 The total economy is defined as the
entire set of resident institutional
units.
Institutional unit:
 An institutional unit is an economic
entity that is capable, in its own
right, of owning assets, incurring
liabilities and engaging in economic
activities and in transactions with
other entities.
 There are two main types of units in the
real world that may qualify as institutional
units, namely persons or groups of persons
in the form of households, and legal or
social entities.
 Households
 Legal or social units
 Government
 Corporations
 Non profit institutions
 Sectors are groups of institutional
units and the whole of each
institutional unit must be classified to
one or other sector.
 Institutional sector

Rest of the world

Government

Total
Households NPISH
Economy

Financial Non Financial

Corporation Corporation
Q1: Who are the players ? Ans1: Institutional Units or sectors

Ans2: Do economic activities eg

Q2: What do they do? Production, Consumption and
Accumulation.
Ans3: By transaction and other
Q3: How is this measured? flows applying to stocks of
assets using SNA (2008)
guidelines.

Q4: How is this information Ans4: In accounts.

presented?
Q5: When & where? Ans4: In Period of time
within economic territory.
International Standards Industrial Classification(ISIC)
2010/11 bae year (ISIC rev. 3.1) 2010/11 bae year (ISIC rev. 4)
Secti Secti
Descriptions on on Descriptions
Agriculture and forestry A A Agriculture, forestry and fishing
Fishing B B Mining and quarrying
Mining and quarrying C C Manufacturing
Electricity, gas, steam and air conditioning
D D
Manufacturing supply
Water supply; sewerage, waste
E E
Electricity gas and water management and remediation Activities
Construction F F Construction
Wholesale and retail trade; repair of
G G
Wholesale and retail trade motor vehicles and motorcycles
Hotels and restaurants H H Transportation and storage
Transport, storage and communications I I Accommodation and food service activities
Financial intermediation J J Information and communication

Real estate, renting and business activities K K Financial and insurance activities
Public administration and defence L L Real estate activities
Professional, scientific and technical
M M
Education activities
Administrative and support service
N N
Health and social work activities
Public administration and defence;
O compulsory social security
Other community, social and personal P Education
service activities ;Section P Activities of Q Human health and social work activities
private households as employers and R Arts, entertainment and recreation
undifferentiated production and activities O S Other service activities
of private households and Section Q Extra- Activities of households as employers;
territorial organizations and bodies are undifferentiated goods- and services-
T
morged producing activities of households for
own use
Activities of extraterritorial organizations
U and bodies
GDP is the total value of all final goods
and services (without duplication)newly
produced within a Eco-Teritory in a
given period of time that generates net
incomes to the economy & are available
for domestic uses and exports.
 Production Approach

 Expenditure Approach

 Income Approach
 Gross Domestic Product (GDP) at market
prices represents the final result of the
production activity of resident producer
units of an economy
 Production is what is in Production
Boundary
 Gross value added =
 Output – Intermediate consumption
Production approach :
GDP = Σ GVA
Where GVA= Gross output- intermediation consumption

PRODUCTION AND PRICE STATISTICS FOR 2014

QUANTITY PRICE PER Intermediate

PRODUCT VALUE (Rs.)
(Kg.) UNIT (Rs.) consumption (Rs.)
Paddy 1000 20 20000 5000
Maze 200 10 2000 800
Millet 50 10 500 300
Wheat 150 10 1500 600
Output = 24000 IC = 6700
GVA 24000 - 6700 = 17300
 Data Source for Production Approach:
 1. Surveys: NLSS, AHS, NLFS and other
benchmark surveys
 2. Census: Population Census, Agriculture
Census, Census of Manufacturing
Establishment, Economic Census etc.
 3. Administrative records: Administrative
records of Government and other private
enterprise.
 4. Studies: some small studies like studies on
tuition center.
 6,489,261
6,012,751
6,011,711
7,000,000

6,000,000

4,266,321
5,000,000

3,914,701
3,858,930
3,733,274
3,454,140
3,342,481
4,000,000

2,755,987
2,669,231

2,558,611
3,000,000

2,000,000

1,000,000

0
Output at basic price Intermedaite GDP at basic price GDP at purchaser
consumption at price
purchaser price
2018/19 2019/20 2020/21
 GDP = Final consumption + Gross CF +
 Exports – Imports
 Final Consumption :
Goods & services used by households or community.
 FCE (final con exp) of households
 FCE of general government
 FCE of NPIs serving households

For households all durables are part of final

consumption (except purchases , own construction or
improvements of residential buildings, which are
part of GCF)
 Service of owner occupied dwellings are FC
 Payment for licenses, passports, permits ..
 Investment in Capital goods
 Measures the additions to the capital stock of
buildings, equipment and inventories. ie the addition
to the capacity to produce more in the future
 Land, natural resources etc are not, because the
change of ownership will not increase the non produced
assets (cost of transfer only included)
Components:
 Gross fixed capital formation

 Changes in inventories

 Acquisition less disposals of valuables

 (jewelry..)
GDP = C + I + (X-M)
Where Expenditure category 2020/21
Final Consumption Expenditure 3,983,970
C = Final consumption Government consumption 364,308
Collective Consumption 223,715
I = Investment (GCF) Individual Consumption 140,594
Private consumption 3,545,272
X =Export Food 1745975
M =Import Non-food 667990
Services 1131307
Nonprofit institutions serving households 74,390
Gross Capital Formation 1,312,713
Gross Fixed Capital Formation(GFCF) 1,163,057
General Government 210,195
State Owned Enterprises 88957
Private 863904
Change in Stock 149,656
Net Exports of Goods and Services -1,183,896
Imports 1,400,618
Exports 216,722
GDP 4,112,787
Income approach :
GDP= CE + Gross operating surplus and Mixed
income + Taxes – Subsidies
Where CE = Compensation or Employee

Category 2020/21
Gross Domestic Product (GDP) 4266321
Compensation of Employees 1616197
Taxes less subsidies on production and
imports 537079
Taxes less subsidies on production 2145
Taxes less subsidies on products 534934
Operating Surplus/Mixed Income, Gross 2113046
Net Domestic Product (NDP) = GDP – CFC

Where CFC : Consumption of fixed Capital at

production process
Grass national Income (GNI) measures production or
income that is earned using country's resources.
(Formally called Grass national product GNP):
GNI = GDP + Compensation of employees and property income
from the rest of the world – Compensation of employees and
property income to the rest of the world
Gross National Disposable Income (GNDI)
GNDI = GNI + Current transfers from the ROW– Current
transfers to ROW
Gross National Saving (S)
S = GNDI - Consumption
 Gross Domestic Product Net Factor
(GDP) Income From
Abroad

Gross National Income Net Transfers

(GNI) From Abroad

Gross National Disposable Consumption

Income (GNDI)

Gross Saving
 Inflation can distort economic variables like
GDP, so we have two versions of GDP:
One is corrected for inflation, the other is not.
 Nominal GDP values output using current
prices. It is not corrected for inflation.
 Real GDP values output using the prices of
a base year. Real GDP is corrected for inflation.
 The GDP deflator is a measure of the overall
level of prices.
 Definition:

nominal GDP
GDP deflator = 100 x
real GDP

 One way to measure the economy’s inflation

rate is to compute the percentage increase in the
GDP deflator from one year to the next.
10.00
8.98

8.00 7.62
6.66
6.01
6.00
4.67
3.98 4.01
4.00 3.53

2.00
0.43
0.00

-2.09
-2.00

-4.00
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1964/65 1974/75

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Rebasing Rebasing Rebasing Rebasing Rebasing Rebasing
Of Of Of Of Of Of
National National National National National National
Accounts Accounts Accounts Accounts Accounts Accounts
 3 year revision policy.

YEAR I YEAR II YEAR III

P R F
 Economic Performance indicators
Indicators Interpretations

Percapita GDP or Level of economic development in

Percapita GNDI comparison to other countries

GDP growth rate Performance of the economy

Compensation of Income share of employees in GDP

employees/GDP
Operating surplus/GDP Income share of capital to GDP

GFCF/GDP Share of investment in capital goods

in GDP
Change in GFCF/Change Incremental Capital Output Ratio
in GDP
Saving/GDP Saving rate of nation
Saving/GFCF Domestic funding of investment
Government Government deficit rate
deficit/GDP
Taxes/GDP Government effort or tax burden
Import/GDP Import reliance
Export/GDP Export effort
(Export+Import)/ Degree of openness of the economy
GDP
(Export- Export Import gap
Import)/GDP
Current Price Size of the economy
GDP