Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698840696383.pdf (Saint Vincent and the Grenadines)
ST VINCENT AND THE GRENADINES ANNUAL GROSS DOMESTIC PRODUCT BY EXPENDITURE SOURCES AND METHODS Contents Page Abbreviations .................................................................................................................3 Introduction……………………………………………………………………………4 Data sources…………………………………………………………………………...5 Compilation Procedures .................................................................................................6 Table 1:Data sources and methodology HFCE by product in Current Prices…….…..9 Table 2:Data sources and methodology GFCE, NPISHFCE, GCF, Imports and Exports in Current Prices .............................................................................................14 Table 3:Data sources and methodology Imports and Exports of Goods and Services in Constant Price…………….…………………………………………..………….…15 Table 4:Data sources and methodology FCE, GFCF in Constant Prices………….…16 2 ABBREVIATIONS System of National Accounts 1993 Classification by Broad Economic Categories Caribbean Regional Technical Assistance Centre Cost Insurance and Freight Classification of Functions of Government Classification of Individual Consumption according to Purpose Consumer Price Index Eastern Caribbean Central Bank GDP by Expenditure Approach External Trade Section Free On Board Gross Domestic Product Government Final consumption Expenditure Gross Fixed Capital Formation Gross Value Added Household Budget Survey Household Final Consumption Expenditure Harmonized System Commodity Classification
 Intermediate Consumption International Standard Industrial Classification Ministry of Finance Non Profit Institution Non-Profit Institutions Serving Households 1993 SNA BEC CARTAC CIF COFOG COICOP CPI ECCB EGDP ETS FOB GDP GFCE GFCF GVA HBS HFCE HS IC ISIC MoF NPI NPISH NPISHFCE Non-Profit Institutions Serving Households Final Consumption Expenditure PSIP SITC SO Public Sector Investment Programme Standard International Trade Classification Statistical Office 3 Introduction This document serves as a guide on how the expenditure – based Gross Domestic Product (GDP) is compiled by the Statistical Office (SO) - St. Vincent and the Grenadines.
The sources and methods described herein apply to the period 2008 to date.

Previous estimates of GDP (E) were compiled by the SO using different methods.

In 2011, the SO in collaboration with Caribbean Regional Technical Assistance Centre (CARTAC) and Eastern Caribbean Central Bank (ECCB) embarked on a pilot project to revise the estimates of Expenditure on Gross Domestic Product (EGDP).
The main purpose of the exercise was to revise the EGDP estimates in current and constant prices through the autonomous calculation of Household Final Consumption Expenditure (HFCE).

Although the expenditure on gross domestic product described in this document is an official statistic, the official estimate of GDP is derived from the production approach.

These two estimates are not exactly the same, and the difference is known as the statistical discrepancy (SD) in the GDP.
This applies to GDP in both nominal terms (current prices) and real terms (constant prices).

Detailed information on how the published estimates are put together, are recorded in the tables at the end of the document.

4 Data Sources National accounting estimates are very seldom the result of direct measurement.

Some data are derived from statistical inquiries, while other basic information is derived from administrative data sources.
The data sources by expenditure component are as follows:  Household Final Consumption Expenditure (HFCE) at current prices: external trade statistics, production data from establishments, and the 2007/8 Household Budget Survey (HBS).

 Non Profit Institutions Serving Households Final Consumption Expenditure (NPISHFCE): the national accounts survey.
 General Government Final Consumption Expenditure (GFCE): government budget from the Ministry of Finance (MoF), Public Sector Investment Program (PSIP), the financial statements of NIS, financial statements from the statutory bodies.

 Capital Formation: external trade statistics adjusted for import duties, VAT and trade and transport margins and local sales of construction materials  Exports and Imports of Goods: the external trade statistics.
 The Exports and Imports of Services: Balance of Payments  Changes in Inventories: national accounts survey data of the manufacturing and wholesale and retail trade industry 5 Compilation Procedures Household Final Consumption Expenditure – Goods HFCE for 2008 is mainly derived from the HBS.

The HFCE of goods is calculated by extrapolation of the base year (2008) HFCE data by the change in the supply of consumption goods.
The supply consists of import of consumption goods (using BEC, SITC, and COICOP classification) plus the supply of consumption goods from domestic sales (if applicable).

Where applicable the domestic sales data is adjusted for intermediate consumption and exports.

In cases where the HBS data is lacking or not plausible, the level of the direct estimates and import of consumption goods combined with domestic supply is used.
HFCE at constant prices is calculated as the current price HFCE by commodity (5 digit COICOP) deflated by the commodity specific CPI.

Household Final Consumption Expenditure – Services The HFCE of services is calculated by extrapolation of the base year (2008) HFCE with the service specific output as derived from the supply side.

The output is adjusted for other uses such as intermediate consumption and export where applicable and/or feasible, to make an estimate of HFCE.
For those commodities without an estimate in the HBS e.g.

life insurance, the output of life insurance, the HFCE of this service is used to make estimation.

In this particular case the output is equal to the HFCE.

For those commodities without an estimate in the HBS, the output is equal to the HFCE.

Also, in some cases, the level of the direct estimates is applied and equal to HFCE.

The commodity specific CPI is used as a deflator for the service related products to derive HFCE in constant prices.
Nonprofit institutions serving Households Final Consumption Expenditure (NPISHFCE) The final consumption expenditure of the NPISH is equal to their output minus any revenue from sales of goods and services.

Since there are no sales of goods and services the output is equal to the NPISH final consumption expenditure.

The output is calculated as the sum of costs’ (compensation of employees, intermediate consumption, and consumption of fixed capital).
NPISHFCE in constant prices is derived by deflating the intermediate consumption in current prices by the product specific CPI of the major expenditure categories and to deflate compensation of employees by the wage index.

Government Final Consumption Expenditure (GFCE) The GFCE is calculated for General Government consisting of final consumption expenditure by the central government, the statutory bodies (government NPIs) and the National Insurance Service (NIS).
GFCE is calculated according to the System of National Accounts 1993 (1993 SNA) definitions as the value of output of general government less the value of output of own account capital formation, less the value of sales of goods and services, plus social transfers in kind to households.

The value of output of General Government is 6 estimated as the sum of costs involved in production.
This is equal to compensation of employees, intermediate consumption, consumption of fixed capital and other taxes less subsidies on production.

GFCE in constant prices is derived by deflating the intermediate consumption in current prices by the product specific CPI of the major expenditure categories and to deflate compensation of employees by the wage index.

Gross Capital Formation (GCF) Machinery and Equipment and Transport Equipment Estimates are derived using the commodity flow approach.
Imports of machinery and equipment and transport equipment from external trade are adjusted for capital formation as end use using BEC.

Imports (c.i.f) are adjusted for re-exports, taxes and trade and transport margins to derive total available.

GFCF at constant prices is derived by deflating the current price value of transport and other machinery and equipment by the product specific UVI of imports.

Construction Estimates are derived using the commodity flow approach.
Imports ( c.i.f) are adjusted for re-exports, taxes and trade and transport margins.

Domestic sales of locally produced construction materials are added to derive total available.

The total available is adjusted to determine total cost of construction.

The constant price value of the construction component of GFCF is derived by deflating the current price value of building and other structures by the composite buildings and materials price index.
Changes in Inventories This is estimated as the changes in inventories of the Wholesale and Retail Trade industry and Manufacturing sector with an adjustment for under-coverage.

The constant price value for changes in inventory is derived by deflating the current prices by the all items CPI.

Imports and Exports of Goods External trade statistics on merchandise goods are used to compile the imports and exports of goods.
This is also the main source for the imports and exports of merchandise goods in the BOP.

The imports and exports of goods in constant prices are calculated by deflating the imports in current prices by the product specific import unit value index (UVI) for a selected group of (as much as possible homogeneous) products.

Imports and Exports of Services Service specific surveys are used for the collection of data regarding the imports and exports of services as included in the BOP.
Two approaches are used to derive imports and exports of services in constant prices, namely, deflation of the current price values by a corresponding price index, or extrapolation of the base year value by an output related volume index.
7 Table 1: Data sources and methodology Household Final Consumption Expenditure by product – in Current Prices Product Description 2008 Base year 2009 - Rice HBS Other cereals, flour and other products HBS Bread Other bakery products Pasta products and couscous Beef and veal Pork Lamb, mutton and goat Poultry Other meats and meat preparations HBS HFCE from import HBS HBS HBS HBS HBS HBS HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HFCE from import HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC and domestic exports HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import Fresh, chilled or frozen fish and seafood HBS HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC and domestic exports Preserved or processed fish and seafood Fresh milk Preserved milk and other milk products Cheese and curd Eggs and egg-based products Butter and margarine Other edible oils and fats Fresh or chilled fruit
 Frozen, preserved or processed fruit and fruit-based products Fresh or chilled vegetables other than potatoes Fresh or chilled potatoes and other tuber vegetables Frozen, preserved or processed vegetables and vegetable-based products Sugar Jams, marmalades and honey Confectionery, chocolate and ice cream HBS HFCE from import HBS HBS HFCE from import HBS HFCE from import HFCE from import HBS HFCE from import HFCE from import HBS HBS HBS HFCE from import HBS extrapolated by the change in HFCE from import HHFCE from import HBS extrapolated by change in HFCE from import HBS extrapolated by change in HFCE from import HFCE from import plus domestic production adjusted for IC HBS extrapolated by change in HFCE from import HFCE from import HFCE from import plus domestic production adjusted for IC and domestic exports HBS extrapolated by change in HFCE from import HFCE from import plus domestic production adjusted for IC and domestic exports HFCE from import plus domestic production adjusted for IC and domestic exports HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HFCE from import plus domestic sales adjusted for IC 8 Product Description Food products n.e.c.
Coffee, tea and cocoa Mineral waters, soft drinks, fruit and vegetable juices Spirits Wine Beer Tobacco Narcotics Clothing materials, other articles of clothing and clothing accessories Garments Cleaning, repair and hire of clothing 2008 year HBS HBS HBS HBS HBS Base 2009 - HBS extrapolated by change in HFCE from import HBS extrapolated by change in HFCE from import HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC and domestic exports HBS extrapolated by the change in HFCE from import HBS HFCE imports from HBS extrapolated by the change in HFCE from import HFCE from imports plus domestic production adjusted for IC and domestic exports Not available Not available HBS HBS extrapolated by change in HFCE from import HBS extrapolated by the change in HFCE from import plus domestic less exports HBS Output from the supply side adjusted for IC Output from the supply side adjusted for IC Shoes and other footwear HBS Repair and hire of footwear Actual and imputed rentals for housing Maintenance and repair of the dwelling Water supply Miscellaneous services relating to the dwelling Electricity Gas Other fuels SO estimate Supply estimates side NA Direct estimate from company Supply side estimates Direct estimates from company the HBS HHFCE from import Furniture and furnishings HBS Carpets and other floor coverings Repair of furniture, furnishings and floor coverings HBS Supply estimates side Household textiles Major household appliances whether electric or not Small electric household appliances HBS HBS HBS HBS extrapolated by the change in HFCE from import plus domestic Estimate based on the population between 16 and 60 years for males and females and 40 percent was assumed and an average spending of $30 for ladies and $20 for men Supply side estimates Not applicable Base year HFCE extrapolated by the change in output at current prices Supply side estimates Direct estimates from the company HBS
 extrapolated by change in HFCE from import HFCE from import HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC and domestic exports HBS extrapolated by change in HFCE from imports 10 percent of manufacturing output HBS extrapolated by change in HFCE from imports HBS extrapolated by change in HFCE from imports HBS extrapolated by change in HFCE from imports 9 Product Description Repair of household appliances Glassware, utensils tableware and household Major tools and equipment Base 2008 year Supply estimates 2009 - ISIC 5260 - Repairs of personal and household goods side HBS HFCE import from HBS extrapolated by change in HFCE from imports HFCE from import Small tools and miscellaneous accessories HBS HBS extrapolated by change in HFCE from imports Non-durable household goods Domestic services Household services Pharmaceutical products Other medical products Therapeutic appliances and equipment Medical services Dental services Paramedical services Hospital services Motor cars Motor cycles Bicycles Animal drawn vehicles Fuels and lubricants for personal transport equipment Maintenance and transport equipment Other services in respect of personal transport equipment repair of personal Passenger transport by railway from from from HFCE import HBS HBS HBS HFCE import HFCE import HBS HFCE from import HBS extrapolated by the output of domestic services HBS extrapolated by the output of other household services HBS extrapolated by change in HFCE from imports HFCE from import HFCE from import HBS extrapolated by the output in medical services HBS HBS plus govt.
services HBS plus govt.
services HFCE from import HFCE import HFCE import Not applicable from from HBS extrapolated by the output in medical services HBS extrapolated by government services HBS extrapolated by government services the output the output in medical services plus in medical services plus HFCE from import – commodity flow approach HFCE from import HFCE from import Not applicable HBS HBS extrapolated by change in HFCE from imports HBS Not applicable Not applicable HBS extrapolated by the output Not applicable Not applicable 10 Product Description Passenger transport by road Passenger transport by air Passenger transport by sea and inland waterway Combined passenger transport Other purchased transport services Postal services Telephone and telefax equipment Telephone and telefax services Audio-visual, photographic processing equipment and information Recording media Repair of audio-visual, photographic and information processing equipment Major durables for outdoor and indoor recreation Maintenance and repair of other major durables for recreation and culture from Base 2008 year Output supply side Direct estimate from companies Output supply side from Not applicable HBS plus direct estimates from govt.
account HBS HBS Direct estimates from the company HBS HFCE import HBS HFCE import from from 2009 - Output from the supply side Base year ratio multiplied by output current Output from the supply side plus transport margin Not applicable HBS plus direct estimates from government account HBS extrapolated by the change in output of postal services – supply side estimates HBS extrapolated by change in HFCE from imports Base year consumption share multiplied by output current HBS extrapolated by change in HFCE from imports HFCE from import Base year HBS value extrapolated by product specific CPI and volume index of annual population change HFCE from import Not applicable Not applicable Other recreational items and equipment HBS Garden and pets Veterinary and other services for pets HBS Output supply side from Recreational and sporting services HBS Cultural services Games of chance HBS Output supply side from Newspapers, books and stationery HBS HBS extrapolated by change in HFCE from imports HBS extrapolated by the change in HFCE from import plus domestic sales adjusted for IC Output from supply side adjusted for IC Base year HBS value extrapolated by product specific CPI and volume index of annual population change HBS data extrapolated by the change in output in cultural services Output from supply side HBS extrapolated by the change in HFCE from import plus domestic sales Package holidays Education Catering services Not applicable Not applicable HBS Output supply side from HBS extrapolated by the change in output of education services – supply side estimates Output from supply side adjusted for IC Accommodation services Output supply side from Output from production approach - 5 percent of output for use by residents 11 Product Description Hairdressing establishments salons and personal grooming Appliances, articles and products for personal care Jewellery, clocks and watches Other personal effects Social protection Insurance Financial Measured (FISIM) Intermediation Other financial services n.e.c.
Other services n.e.c.

Net Purchases Abroad Services Indirectly Base 2009 - HBS data extrapolated by the change in output of hairdressers etc.
HBS extrapolated by change in HHFCE from imports HBS extrapolated by change in HHFCE from imports HBS extrapolated by change in HHFCE from imports plus domestic sales adjusted for IC HBS data extrapolated by product specific output Output from supply side Output from the supply side Output from production approach adjusted to estimate HFCE HBS data extrapolated by the movement of the output in the various ISIC categories bop, travel, debit 2008 year HBS HBS HBS HBS HBS Output supply side Output supply side Output supply side from from from HBS External sector accounts 12 Table 2: Data sources and methodology GFCE, NPISHFCE, GCF, Imports and Exports – in Current Prices Expenditure component Data source Methodology General GFCE NPISHFCE GFCF Transport equipment Other machinery and equipment Construction Government budget, data from Statutory bodies, data from Insurance Service National (NIS), Sector Public Investment Program (PSIP) Survey data trade unions, religious organizations, other membership organizations, sporting activities and other member organizations -Value of output less the value of output of own account capital formation, less the value of sales of goods and services, plus social transfers in kind to households plus PSIP consumption component - Output: sum of costs = compensation of employees, intermediate consumption, consumption of fixed capital and other taxes less subsidies on production - Consumption of fixed capital imputed as 5 percent of GFCF Gross output minus any revenue from sales of goods and services External statistics/Customs External statistics/Customs Import of transport equipment from external trade statistics (Customs) adjusted for capital formation as end use using the BEC trade Import of other machinery and equipment adjusted for capital formation end use using the BEC trade External trade statistics/Customs plus national accounts survey data related to domestic suppliers -0.95 of total cost of construction, assuming that about 5 percent of the total cost of construction is
 related to repair and maintenance -Total cost of construction proxied by the value of imported construction materials plus domestic supply adjusted for services and repair and maintenance GFCF government PSIP Capital formation component of the PSIP Changes in inventories National accounts survey data Changes in inventories of manufacturing and wholesale and retail trade adjusted for under coverage Imports and exports of goods External merchandise/Customs trade statistics on External trade statistics on merchandise/Customs Imports and exports of services Service specific surveys for Balance of Payments (BOP) compilation BOP data 13 Table 3: Data sources and methodology Imports and Exports of Goods and Services – in Constant Prices Variable Indicator Imports of goods Main imports Other imports Exports of goods Main exports Other exports Imports of services Sea Transport Air Transport Travel Freight Insurance Life Insurance Non-life insurance Product specific UVI of imports of goods Composite UVI of imports of goods Product specific UVI of exports of goods Composite UVI of exports of goods Volume index of cargo landed Volume index of passenger departures Volume index of visitor departures Volume index of cargo landed Price index of life insurance rates Price index of non-life insurance rates Other Business Services USA product specific PPI Resident Government Foreign Government USA CPI Re-indexed All items CPI Other (Technical assistance received) Volume index of OECD Output Exports of services Sea Transport Air Transport Travel Freight Insurance Life Insurance Non-life insurance Volume index of cargo loaded Volume index of passenger arrivals Volume index of visitor arrivals Volume index of cargo loaded Price index of life insurance rates Price index of non-life insurance rates Insurance Agents Commissions Price index of insurance rates Financial Services Other Business Services Wage rate index CPI for services 14 Table 4: Data sources and methodology Final Consumption
 Expenditure and GFCF – in Constant Prices Variable Indicator Household final consumption expenditure by product Product specific CPI NPISH final consumption expenditure Compensation of employees Wage rate index Intermediate consumption All items CPI Government Final Consumption Compensation of employees Wage rate index Intermediate consumption All items CPI Gross Capital Formation Transport and other machinery and equipment Product specific UVI of imports of goods Construction Buildings materials price index Changes in Inventories All items CPI 15