Gross domestic product per capita
HERMREG database: cooperation project between the Federal Planning Bureau, Statistics Flanders, the Institut Wallon de l’Evaluation, de la Prospective et de la Statistique (IWEPS), the Brussels Institute for Statistics and Analysis (BISA), Statbel and the Institute of National Accounts (INR), processed by Statistics Flanders
Gross domestic product (GDP): the monetary value of the final goods and services produced in a given country or region in one year. These are consumer goods and capital goods (investments) from the private and public sectors for domestic use and export, after deduction of imported consumer and capital goods.
Terminology of the European System of Accounts (ESA) 2010:
(1) Production sold (at the price excluding transport costs if invoiced separately and including any possible transport margin).
(2) Intermediate consumption at purchase prices (without deductible VAT, including any non-deductible VAT).
(3) = (1) - (2) Gross value added at factor cost.
(4) Non-product-linked taxes (taxes on land use, buildings, environmental taxes etc.).
(5) Non-product-linked subsidies (for labour, for environmental protection etc.).
(6) = (3) + (4) - (5) Gross value added at basic prices.
(7) Product-linked taxes (VAT, import duties and taxes, excise duties).
(8) Product-linked subsidies (import subsidies, other subsidies).
(9) = (6) + (7) - (8) Gross domestic product at market prices.
The denominator is the average population. When reference is made to GDP in year X, the average population = (population on 1 Jan X + population on 1 Jan X+1)/2.
For the Belgian regions, data which have been corrected for commuter movements are also calculated. This is done on the basis of the home-workplace commuter matrices derived from the European Labour Force Survey (EU-LFS). Commuter matrices are charts with an overview showing in which region commuters live and in which region they work.
The use of the Purchasing Power Standard (PPS) neutralises differences in purchasing power between countries. The data for the Belgian regions were estimated by the application of Belgian purchasing power parities.
The euro PPS is an artificial currency in which the variables of the national accounts of various countries can be expressed taking price differences into account (as the same goods or services do not cost the same in every country).
The series underwent a revision of the national accounts and a change of the distribution keys in the regional accounts.
The main methodological changes in the national accounts related to corporate directors, housing services, insurance services, hospital services, research and development, the reclassification of non-profit organisations (test market/non-market), household electricity production, the indirectly measured services of financial intermediaries and the taxes and subsidies on production and imports. As a result, the figures to be distributed for Belgium changed, for all branches of industry.
The main changes of the national aggregates to be distributed to the regions are as follows:
- Distribution key for companies with locations in several districts: in the past, macroeconomic variables were divided according to the number of jobs. Now there are several distribution keys according to the variable. For gross value added, investments and exports and imports, this is now based on the wages. There is a better correlation between the variables involved and wages than the number of jobs. This improves the quality of regional distribution.
- From now on, the gross added value of credit and insurance institutions is no longer only distributed over the districts of a multi-regional institution according to the remuneration of employees, but also partly according to the sum of interests and commissions received and paid and premiums received. This also improves the quality.
Remarks on quality
Gross domestic product for Belgium and the regions is compiled by the Institute of National Accounts (INR) on the basis of a wide range of sources. The national accounts and VAT and NSSO (National Social Security Office) data are an important source for companies. For public bodies, these are the public accounts. The calculations are carried out in accordance with the ESA 2010 methodology and are internationally accepted by the national statistical institutes. These data are transmitted to Eurostat, which uses them to compile the series in purchasing power standard.
The output of the Institute of National Accounts forms the source of the medium-term projections of the HERMREG model. These projections are calculated by means of econometric estimates by the Federal Planning Bureau in collaboration with statistical experts from the regions. The figures for the Regions are converted into euro purchasing power standard (euro PPS) by Statistics Flanders. The HERMREG output is always submitted to a Steering Committee in which the Federal Planning Bureau and the regions are represented.
FPB, Statistics Flanders, IWEPS, BISA: Regional economic outlook
Institute of National Accounts (INR):Regional accounts
European Commission: Ameco