Explanatory Notes on Major Statistical Indicators
【Gross Domestic Product (GDP)】 refers to the final products of all resident units in a country (or a region) during a certain period of time. Gross domestic product is expressed in three different forms, i.e. value, income, and products respectively. The form of value refers to the total value of all products and services produced by all resident units during a certain period of time ,minus total value of intimidate input of materials and services of the nature of non-fixed assets or the summation of the value-added of all resident units; the form of income includes all the income created by all resident units and distributed primarily to all resident and non-resident units; the form of products refers to the value of all final goods and services for final use by all resident units plus the value of net exports of goods and services during a given period of time. In the practice of national accounting, gross domestic product is calculated with three approaches, i.e. production approach, income approach, and expenditure approach, which reflect gross domestic product and its composition from different aspects.
【Three Industries Industry】structure has been classified according to the historical sequence
of development. Primary industry refers to extraction of natural resources;
secondary industry involves processing of primary products; and tertiary
industry provides services of various kinds for production and consumption. The
above classification is universal although it various to some extent from
country to country. Industry in
Primary Industry: agriculture (including farming, forestry, animal husbandry, sideline production and fishery).
Secondary Industry: industry (including mining and quarrying, manufacturing, water supply, electricity generation and supply, steam, hot water, gas) and construction.
Tertiary Industry: all other industries not included in primary or secondary industries.
【Laborers’ Remuneration】refers to the whole payment of various forms earned by the laborers from the productive activities they are engaged in. It includes wages, bonuses and allowances the laborers earned in monetary form and in kind. It also includes the free medical services provided to the laborers and the medicine expenses, traffic subsidies and social insurance fee paid by the laborers’ working units for them.
【Net Taxes on Production】 refers to the residual of the taxes on production minus the subsidies on production. The taxes on production refers to the various taxes, extra charges and fees levied on the production units on their production, sale and business activities as well as on some factors of production, such as fixed assets, land and labor force, used in the production activities they are engaged in. In contrast to the taxes on production, the subsidies on production refer to the unilateral transfer of part of the government’s revenue to the production units and is therefore regarded as negative taxes on production. They include subsidies on the loss due to implementation of government policies, price subsidies to the grain institutions, foreign trade corporations receipts from drawback, etc.
【Depreciation of Fixed Assets】refers to the depreciation of fixed assets of a given period, drawn
in accordance with the stipulated depreciation rate for the purpose of
compensating the wear loss of the fixed assets or the depreciation of fixed
assets calculated in a fictitious way in accordance with the stipulated unified
depreciation rate in the national economic accounting system. It reflects the
value of transfer of the fixed assets in the production of the current period. The depreciation of fixed assets in
various enterprises and institutions managed as enterprises refers to the
depreciation expenses actually drawn and calculated as part of the cost. In
government agencies and institutions not managed as enterprises which do not
draw the depreciation expenses, as well as for the houses of residents, the
depreciation of fixed assets is the imputed depreciation, which is calculated
in accordance with the stipulated unified depreciation rate. In principle, the
depreciation of fixed assets should be calculated on the basis of the
re-purchased value of the fixed assets. However, there is no actual condition
to re-evaluate all the fixed assets in
【Operating Surplus】refers to the balance of the value added created by the resident units deducting the laborers’ remuneration, net taxes on production and the depreciation of fixed assets. It is equivalent to the business profit of the enterprises plus subsidies on production, but the wages and welfare expenses paid from the profits should be deducted.
【GDP Calculated with Expenditure Approach】refers to total expenditure on final consumption, total capital formation and net export of goods and services by resident units of a country in a certain period of time. It reflects the composition of GDP by its use.
【Final Consumption】refers to the total expenditure of resident units on final consumption of goods and services in a certain period, namely the expenditure of the resident units for purchases of goods and services from domestic economic territory and abroad to meet the requirements of material, cultural and spiritual life. It excludes the expenditure of non-resident units on consumption in the economic territory of the country. The final consumption is classified into household consumption and government consumption.
【Total Capital Formation】refers to the fixed assets acquired minus those disposed and the change in inventory, including the total fixed assets formation and the increase in inventory.