Gross national product is calculated as. Nominal gross national product

How can the market value of the entire volume of production, as well as the unit of production, be measured? There are several ways. They can be represented in the form of a diagram:

Calculation of GNP by expenses

When calculating GNP based on expenses, the following elements are summed up:

1. Expenditures of the population on personal consumption. They represent the population's expenditure on the purchase of consumer goods and services. They include the costs of the population for the purchase of:
- · non-durable goods;
- durable goods;
- · consumer services.

This part of GNP accounts for the overwhelming share of it, but this does not include expenses for the purchase of used goods, i.e. their resale between end consumers. When reselling, there is a repeated counting of the same consumer goods, for example:

· if you bought from someone in a given year a car that was produced in previous years and was used, then the value created earlier will be added to the GNP of the current year;
· when in a given year a car manufactured in the same year, but already used, was rebought, then its value in the specified year will be counted twice; if it is resold several times, then its value (at resale prices) will be counted the corresponding number of times. Therefore, consumer spending takes into account only purchases without resales.
2. Gross private domestic investment. They do not include the costs of acquiring securities, since the latter are fictitious capital: debt obligations of issuers (for example, bonds) or co-ownership rights (for example, in the form of shares). These include real gross private domestic investment.

What components do the latter consist of?

· final business purchases of machinery, equipment and tools (without resale). Acquisition costs directly form the active part of production capacity, ensure the purchase and installation of active means of labor;
· costs of construction and installation work to create the passive part of production facilities (excluding their subsequent resales). These investments are expressed in the construction and overhaul of passive means of labor (buildings, structures, including the construction of residential buildings), since they can be used by their owners not as a consumer good for personal use, but as an asset used for renting out housing to tenants;
· change in stocks of unsold products for industrial and consumer purposes (the difference between their stocks at the beginning and end of the period). Although no one has bought it yet, it must be taken into account, since during the corresponding period (year) certain resources were spent on its production, underestimation of the costs of which will lead to an underestimation of GNP.

Inventory changes can be:

· with a plus sign, when inventories increase at the end of the period compared to its beginning, i.e. there is an increase in overstocking in the economy;
· or with a minus sign if overstocking is decreasing, accompanying an acceleration of economic turnover.

Why is this component of GNP calculated by expenditure called gross private domestic investment?

Firstly, internal because they take into account only domestic investments.

Secondly, private, since we are talking about investments only within the non-state sector.

Thirdly, gross, since they include the costs of purchasing all investment goods (except for resales of previously created capacities), i.e. costs for the purchase of all active and passive means of labor, regardless of what they are used for: the creation of new capacities or the replacement of worn-out elements of old capacities.

Gross investment consists of depreciation to replace worn-out components of fixed assets; from net capital investments that go not to replace old ones, but to create new elements of fixed capital.

A comparison of depreciation with gross private domestic investment is very indicative of characterizing the state of social reproduction:

· when gross investment is greater than depreciation, then net investment takes place, ensuring the growth of economic capital and fixing the rise of the national economy;
· if gross investment is equal to depreciation, then there is a preservation of economic potential, although with possible structural changes, because depreciation is enough to replace and renew fixed capital on the same scale;
· if gross investment is less than depreciation, then the economic potential is not fully restored, since depreciation is then insufficient to compensate for a certain part of the consumed fixed capital, which has lost its technical and economic capabilities in the process of application.
3. Government spending on the purchase of resources and products. In developed countries, about 20% of all purchases are made by government agencies at various levels. Their purchases of resources and products are included in these expenses. At the same time, this value does not include government transfers in the form of payments of pensions, benefits, etc. Taking them into account would lead to the repeated counting of the same amounts when determining GNP based on expenses. State social transfers are generated as a result of taxation and are used, as a rule, for consumer expenses by their recipients, i.e. are already contained in taxes on sellers of consumer and investment goods, and in consumer expenditures of the population, which includes transfer recipients.
4. Net exports, or trade balance. Since, on the one hand, part of domestic products is exported, and on the other hand, national buyers direct part of their consumer and investment expenses to purchase imported products, exports and imports should be taken into account when calculating GNP by expenses: you need to add exports and subtract imports for a certain period . But usually, the difference between exports and imports, which is called net exports, is immediately added to the other components of GNP. This is the difference between GDP and GNP.

The data can be presented as a formula:

GNP = Y = C + I + G + NX, Where

C- personal consumer expenses, which include household expenses on durable goods and current consumption, on services (except for expenses on the purchase of housing).

I- gross private domestic investment. Includes industrial capital investments (investments in fixed production assets), investments in housing construction and investment in inventories (inventory).

Investment is understood as an addition to the physical stock of capital. The purchase of financial securities (stocks, bonds) is not an investment. The term “domestic investment” means that it is investment made by residents of a given country (including spending on imported goods). The term private investment means that it does not include public investment. The term "gross" means that no depreciation is subtracted from the investment: Gross Investment = Net Investment + Depreciation. An increase in inventories is taken into account with a “+” sign, and a decrease with a minus sign.

G- public procurement of goods and services (construction and maintenance of schools, roads, army, national defense expenditures, salaries of civil servants, etc.). This does not include transfer payments. Government transfers are payments not related to the movement of goods and services. They redistribute state income through benefits, pensions, and social insurance payments.

NX- net exports. It is equal to the difference between the value volumes of exports and imports. If a country exports more than it imports, then it acts as a “net exporter” on the world market, and GNP exceeds domestic spending. If it imports more, then it is a “net importer”; the value of net exports is negative. The amount of expenses exceeds the volume of production.

This GNP equation is called the basic macroeconomic identity or national accounts identity.

There are three ways to measure GNP (GDP):

a) by value added (production method);

b) by cost (end-use method);

c) by income (distribution method).

Therefore, the cost of consumed raw materials and materials that were purchased from suppliers and in the creation of which the enterprise did not participate is not included in the added value of the product produced by this enterprise.

In other words, value added is the difference between the cost of products produced by a firm and the amount paid to other firms for purchased raw materials, materials, etc. (that is, for intermediate products).

By adding up the added value created by all five firms in our example, we can accurately calculate the cost of the suit.

Thus, the value of GNP when calculated using the production method is the sum of the added value of all manufacturing firms in the country. For the economy as a whole, the sum of all value added must be equal to the value of final goods and services.

When calculating GNP based on expenses the expenses of all economic entities (households, firms, states) and foreigners (export expenses) for the acquisition (consumption) of the final product are summed up. In fact, we are talking about the aggregate demand of economic agents for produced GNP.

Total costs can be broken down into four components:

GNP = C + J g + G + X n ,

Where WITH- personal consumer expenses, including household expenses on durable consumer goods (cars, refrigerators, furniture, etc.), on current consumption goods (bread, milk, cigarettes, shirts, etc.), as well as consumer expenses for services (lawyers, doctors, mechanics, hairdressers, etc.); J g- gross private domestic investment, which includes three components:

1) all final purchases of machinery, equipment and machine tools by entrepreneurs;

2) all construction (industrial and residential);

3) change in inventories (inventories of semi-finished products and raw materials not yet consumed in the production process of goods), while an increase in inventories is taken into account with a “+” sign, a decrease with a “-” sign; G- government purchases of goods and services - all government expenditures, (including federal and local authorities) on the final products of enterprises and on all direct purchases of resources, especially labor (government apparatus). This excludes all government transfer payments because they do not reflect a real increase in current output. These are payments from government bodies that are not related to the movement of goods and services.

Transfers are the transfer of government revenues received from taxpayers to certain families and individuals in the form of pensions, benefits, scholarships, etc.); Xn- net export of goods and services abroad, calculated as the difference between exports and imports. When calculating GNP, it is necessary to take into account all expenses associated with purchases of final goods and services produced in a given country, including expenses of foreigners, i.e. the value of a given country's exports. At the same time, it is necessary to exclude from the purchases of economic agents of a given country those goods and services that were produced abroad, i.e. import cost. The indicator can have either a “+” or a “-” sign.

Among the components of GNP, consumer spending is usually the largest (WITH), and the most volatile are investment expenses ( J g).

When calculating GNP based on income everything is summed up types of factor income, as well as two non-income components: depreciation expense and net indirect business taxes (taxes minus subsidies).

The following types of factor income are usually distinguished as part of GNP (the criterion is the method of generating income):

Remuneration for the work of hired workers (wages, bonuses, etc.);

Rent payments, which represent income received by property owners;

Interest representing payments of monetary income to suppliers of monetary capital;

Property income or income from the unincorporated business sector (income from sole proprietorships, partnerships and cooperatives);

- corporate profits that can be used in three ways:

1) in the form of taxes on corporate profits - the state receives income;

2) in the form of dividends - corporate profits are paid to shareholders;

3) in the form of retained corporate profits (what remains from paying taxes and dividends), which are invested either immediately or in the future to create new factories and purchase equipment.

Depreciation in the form of an accounting entry there are annual allocations that show the amount of capital consumed in the course of production during certain years. Depreciation charges are called charges for capital consumption, i.e. for the purchase of investment goods consumed in the process of producing GNP for a given year. Depreciation is not an addition to someone's income; it says that a portion of a given year's GNP must be set aside to replace in the future the machinery and equipment consumed in the production of final goods and services.

Indirect business taxes include general sales tax, excise taxes, property taxes, license fees and customs duties. This influx of indirect business taxes is unearned revenue since the government does not contribute anything in exchange for tax revenue.

As when calculating GNP based on expenses, in this method it is also necessary to take into account factor income from abroad.

In this case, the calculation of GNP will take the form:

GNP = GDP + net factor income from abroad

Net factor income from abroad is equal to the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of a given country.

Of the above methods for calculating GNP (GDP), the production method (based on value added) and the final use method of GNP (based on expenses) are most often used.

And GNP are necessary for analyzing and assessing the economic situation of the state. A little about what it is.

Basic economic measures

Gross National Product (GNP) and Gross Domestic Product (GDP) are the main economic measures. They are necessary for understanding and analyzing the economic course of the state. One of the tasks of their accounting is to prevent crisis phenomena.

Gross national product is the sum of the final prices of goods produced both domestically and internationally. Methods for calculating GNP are different, but they will be discussed below. To determine GDP, domestic production is taken into account.

For example, a plant producing brake discs for automobiles supplies its products to an automobile plant. They are installed on cars and sold, including the price of components in the cost of goods. The basic economic indicators are based on the amount from car sales. If our plant produces the same disks as spare parts for the market, then in this case the amount from sales goes into accounting for both GDP and GNP. This is done for the objectivity of economic indicators.

We hope that the concept of GDP, GNP has now become clearer. We will discuss methods for calculating these economic indicators below.

Added value

In Soviet publications of economic theory, this concept was called conditionally pure production. Methods for calculating GNP and GDP are based on this indicator.

Value added is the value created by a particular enterprise. This indicator is inextricably linked with the determination of cost. It is formed from wages, profits, depreciation and does not depend directly on external factors. Raw materials, delivery and other expenses that leave the enterprise are included in the cost of the goods. The amount that is formed in excess of it is the added value.

Example of added value

A milk processing plant purchases raw materials from third-party suppliers and makes cheese from them. 1 kg of finished product requires 5 liters. The price is 30 rubles per liter of milk. Thus, the cost of 1 kg of cheese is 150 rubles. Taking into account electricity and transportation, this amount increased by 15 percent. Ultimately, the company pays about 180 rubles for the production of one kilogram of the finished product. This is the cost. Further, the price that comes on top of this amount is added value. This is not profit; it would be a mistake to identify them. Value added includes price increases for depreciation, labor, advertising, etc. Profit is the amount of income minus expenses.

GNP: concept, calculation methods

Gross national product is not limited on a territorial basis, unlike GDP. Production can be located in any country in the world. The main thing is that the owners are tax residents of the state in which we want to find out the GNP. It is considered the main indicator of the well-being of society, although GDP speaks more about the healthy economic situation within the state.

Methods for calculating GNP should exclude so-called non-productive transactions. These are transfer transactions (benefits, pensions, expenses, etc.), transactions with securities. The purchase and sale of used items is also not taken into account. This is understandable, because it is impossible to objectively calculate the state of the economy if people sell the same product to each other.

Cost calculation

There are various methods for calculating GNP. Cost accounting is one of them.

To objectively assess the economic indicator, all costs of producing a product are summed up. These include:

Personal consumption expenditures. They are divided into durable goods (electrical appliances, transport, etc.), current consumption goods (food, small industrial goods), as well as the purchase of services (medicine, education).

Internal investments of enterprises. Purchase of equipment, all types of construction work, as well as changes in inventories (an increase in inventories is taken into account by this method, a decrease, on the contrary, is taken away).

State procurements. This does not include government transfers.

Net export. It is calculated using the formula export minus imports.

Method of calculating GNP by income stream

It is calculated as the previous method, only, on the contrary, it is not the amount of expenses that is taken into account, but the amount of income from the creation of final products and services.

Based on taking into account the following elements:

Deductions to cover depreciation. This is the purchase of equipment and other investment goods that have broken down or worn out during the production process.

Indirect taxes. These include sales taxes, excise taxes, licensing fees, customs duties, and property taxes.

Wage. It also includes contributions from entrepreneurs for social insurance, to the pension fund, etc.

Rent.

Interest.

Dividends.

Income taxes.

Income from individual investments.

Retained earnings of corporations.

Nominal and real economic indicators

GNP (the concept, methods for calculating real economic indicators and their difference from nominal ones) is especially relevant today in our country with a strong devaluation of the national currency. Real economic indicators are more objective and truthful. They are the ones who talk about the current state of affairs in the economy. Ratings simply give a numerical value. The most effective method is to pay in hard currency. For example, in dollars. GDP and GNP in our country are calculated in rubles. This is natural, since this particular currency is national. But with the devaluation of the ruble, economic indicators can greatly increase, while the real state of affairs may not change or, on the contrary, worsen. For example, the volume of all finished products was sold in a year worth a billion rubles. Growth in national currency amounted to 30 percent. The nominal volume has increased. But if you translate into foreign currency and compare, then there was a drop. Now the real level of development of the country is becoming more transparent.

GNP = GDP + Balance of primary income received from abroad or transferred abroad (such first income usually includes wages, income from property in the form of dividends)

There are 3 measurement methods:

1. By cost (end-use method).

2. By value added (production method).

3. By income (distribution method).

When calculating GNP based on expenses the expenses of all economic agents using GNP (households, firms, government and foreigners) are summed up. In fact, we are talking about the aggregate demand for produced GNP.

Total expenses can be broken down into several components:

GNP = Y = C + I + G + NX,

where C is personal consumer expenditures, which include household expenditures on durable goods and current consumption, on services (except for expenditures on the purchase of housing).

I – gross private domestic investment. Includes industrial capital investments (investments in fixed production assets), investments in housing construction and investments in inventories (materials and materials).

Gross Investment = Net Investment + Depreciation.

An increase in inventories is taken into account with a “+” sign, and a decrease with a minus sign.

G – government purchases of goods and services (construction and maintenance of schools, roads, army, national defense expenditures, salaries of civil servants, etc.). This does not include transfer payments. Government transfers are payments not related to the movement of goods and services. They redistribute state income through benefits, pensions, and social insurance payments.

NX is a pure export. It is equal to the difference between the value volumes of exports and imports. If a country exports more than it imports, then it acts as a “net exporter” on the world market, and GNP exceeds domestic spending. If it imports more, then it is a “net importer”; the value of net exports is negative. The amount of expenses exceeds the volume of production.

This GNP equation is called the basic macroeconomic identity or national accounts identity.

When calculating GNP using the production method the value added at each stage of production of the final product is summed up.

Value added (VA) is the difference between the cost of products produced by the firm and the cost of intermediate products purchased by the firm.

The value of GNP in this case is the sum of the added value of all producing firms. This method allows us to take into account the contribution of various firms and industries to the creation of GNP.

GNP = Σ Value added + Indirect taxes – Government subsidies.

For the economy as a whole, the sum of the entire VA must be equal to the cost of final goods and services.

When calculating GNP based on income All types of factor income (salary, rent, %) are summed up, as well as 2 components that are not income: depreciation charges and net indirect taxes on business (taxes minus subsidies).

There is a relationship between GNP and GDP indicators:

GNP = GDP + net factor income from abroad.

Net factor income from abroad is the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of a given country.

If GNP exceeds GDP, it means that residents of a given country earn more abroad than foreigners earn in that country.

According to the method of receiving income, the following types of factor income are distinguished as part of GNP:

§ compensation for labor of employees (salary, bonuses);

§ income of owners;

§ rental income;

§ corporate profits (remaining after wages and interest on loans; it includes shareholder dividends, retained earnings and income tax);

§ net% (the difference between interest payments by firms to other sectors of the economy and interest payments received by firms from other sectors - households and the state).

Of the three methods, the production method and the end-use method are the most commonly used.

National income

Net national product a more advanced indicator compared to GNP, since it does not take into account depreciation charges. Using the net national product (NNP) indicator, you can measure the annual output that an economy (enterprises, organizations, states or foreign citizens) is able to consume without reducing the production possibilities of future periods. Hence NNP = GNP - depreciation.

National income - the most important macroeconomic indicator of the total income of the entire population of a given country for a certain period of time (usually a year); newly created value. National income is determined by the formula:

ND= ChNP-net indirect taxes on business

The main components of income tax are: - income of employees and non-corporate owners; - profit of companies; -rent income; -interest income;

To determine the indicator of the total volume of wages, interest, profit and rent, i.e. payments received in the production of GNP in a given year must be deducted from the NNP indirect taxes on entrepreneurs. The meaning of this calculation is that the state, by collecting indirect taxes from enterprises, does not invest anything in production and therefore cannot be considered as a supplier of economic resources. Thus, we can obtain the national income (NI) indicator. From the point of view of resource owners, ND is a measure of their income from participation in production for the current period. An enterprise considers NI as an indicator reflecting the price level for factors of production or resources.

In economic theory and practice there is a distinction "nominal" And "real" GNP. Nominal GNP is GNP calculated in current year prices. Real GNP is GNP calculated in constant prices, i.e. adjusted nominal GNP:

If the price index is greater than 1, deflation is carried out (measured in lower prices, adjusting GNP downward). If the price index of the measured year is less than 1, inflation is carried out (measured in higher prices, GNP is adjusted upward).

Gross domestic product (GDP) is equal to the sum of the value of all goods produced in a given country by domestic and foreign producers.

The main macroeconomic indicators and statistics of countries, as well as international organizations, such as the UN, OECD, IMF, IBRD, is ⚡ GDP ⚡. It expresses the result of the functioning of the economy over a certain period of development, characterizes the finished products and services provided. Unlike the SOP GDP indicator previously used in our statistics, it does not include the cost of consumed items of labor and, therefore, excludes re-counting. On the other hand, GDP, unlike SOP, in addition to the results of material production, includes the cost of services produced.

Thus, GDP represents the gross value of all goods and services created on the territory of a given state during a certain period minus intermediate consumption. In other words, GDP- this is the sum of added value of all divisions of the national economy. It measures the results of the activities of business entities in the economic territory of a given state, but is not intended to assess production outside the country. GDP characterizes the value created by both residents and non-residents of a given state but does not take into account the value generated by residents outside the country.

To eliminate double counting, when calculating the value of a national product, care should be taken to include only the added value created by individual production. Value added is understood as the market price of the volume of products produced minus the cost of consumed raw materials and materials purchased from suppliers. In addition, GDP also excludes non-productive transactions, which are divided into financial transactions (they include three components: first, government transfer payments; second, private transfer payments; third, securities transactions) and sales of used goods.

In the national statistics of some countries, the main macroeconomic indicator can be considered GNP (used in the American and Japanese systems). In quantitative terms, the difference between GNP and GDP is small and, as a rule, amounts to no more than 1%. Unlike GDP, GNP characterizes the value of final products created by residents in the territory of a given state and abroad, but does not include the activities of non-residents in the economic territory of this country. In short, the definition of GDP uses the territorial principle, according to which goods and services are created by internal factors of a given state, regardless of who actually owns them. The calculation of GNP is based on the national principle, when the cost of products produced by residents is taken into account, regardless of their location. The difference between GNP and GDP is called net factor income from abroad. GNP is equal to GDP plus payments from abroad by residents producing products or providing services and located outside the country, minus payments by foreign residents for the services of factors of production owned by them located within the country.

GNP and GDP are calculated at current prices for comparison with other indicators and at comparable prices to study the dynamics of the physical volume of production.

Nominal GDP(GNP) is an indicator in current prices, i.e. existing at the time of calculation.

Real GDP is GDP at constant prices, i.e. adjusted for inflation.

The ratio of the nominal indicator to the real indicator shows how much GDP has increased solely due to rising prices, and therefore characterizes the change in the general price index. Categories also apply "potential GDP" "GDP lag". Potential GDP characterizes the volume of production that can be achieved with the available factors of production: the gap between this indicator and real GDP is the GDP lag.

Methods for calculating GDP

GDP can be calculated in three ways:

production
distributive
end use

The basis for calculating GDP production method lies such a microeconomic indicator as gross output. The latter represents the value of goods and services produced by economic units - residents - for a certain period. This includes the production of industrial and agricultural products in value terms, transportation of goods, the cost of construction and installation work, and the production of other industries. The cost of services includes services of wholesale and retail trade, logistics and procurement, communication services, healthcare, culture, science, public organizations, services of government bodies, defense, financial institutions, pensions, services of various organizations serving enterprises and institutions . The volume of gross output also includes some categories of goods produced but sold. These include:

products produced by enterprises for intra-industrial consumption
products used for the construction of buildings and the production of other fixed assets
products and services exchanged by barter
products and services used to pay labor in kind
agricultural and food products produced by households for their own consumption
other products produced by households
imputed income from living in your own home
imputed payment for financial intermediary services

As for ground rent, it is considered as income from property and is not included in gross output. Thus, gross output includes the entire amount of goods and services produced in the national economy.

Calculating GDP using the production method consists of taking into account the gross output of the reporting period of production units of all industries at production prices minus their value of intermediate consumption at consumption prices. Thus, GDP is the sum of the added value of all producers of goods and services of a given state. Intermediate consumption includes:

products and material services used in the production process (purchased and own production)
payment for intangible services
additional expenses (travel allowance, special clothing, special food, personal protective equipment, professional training costs)
purchase of food and drinks by hotels, cafes, restaurants, medical and educational institutions
expenses for current repairs
food and service for military personnel
expenses for the purchase of military equipment
payment for financial intermediary services

In accordance with distribution method GDP is the total amount of income of all economic units and the population from all types of economic activity, as well as depreciation charges. More precisely, GDP as a stream of income is represented by:

firstly, the income of the owners (i.e. the amount of wages, interest, rental payments and other property income on the property before taxes)
secondly, state revenues in the form of various indirect taxes
thirdly, in the income of the business sector it is necessary to take into account depreciation deductions, which go towards the purchase of investment goods

You can consider GDP as the sum of primary income (wages, profits and other income), redistributed income (interest on deposits, income from bonds, dividends, social security receipts) and depreciation charges.

In more detail, GNP as an income stream includes the following components:

workers - this is, first of all, wages, which are paid by the state and entrepreneurs to those who offer labor, plus many additions to it (employers' contributions to social insurance and to various private pension funds, medical care and assistance in case of unemployment).
Profits of firms and corporations are the income that remains after deducting producer expenses for wages, rent and interest. They are used to pay taxes, dividends, and retained earnings of corporations.
Income from unincorporated, individually or family-owned businesses and income from self-employed workers (lawyers, writers).
Income of property owners (real estate and natural resources), i.e. rent payments.
Interest on loan capital used in the production of GNP. Loan interest is the payment of private business income to the owners of monetary capital.
Depreciation is an annual deduction that shows the amount of capital consumed in the production process. In addition, GNP by income includes indirect taxes, i.e. taxes on value added, on the sale of goods, excise taxes, customs duties, etc. The state receives these unearned incomes for its maintenance by increasing prices. Government subsidies are deducted from GNP.

When applying the final use method, GDP will appear as the final consumption of material goods and services, capital investments, the increase in material working capital and the balance of foreign trade operations. Thus, GDP will include four streams of expenditure:

Firstly, Consumer Expenditures These are household expenditures on non-durable and durable consumer goods, as well as expenditures on services. The letter C is used to designate the totality of these expenses.

Secondly, the state, represented by its authorities, acts as a consumer, purchasing goods and services, for example, military equipment. Government consumption expenditure is denoted by G. It is important to note the fact that government procurement excludes all government transfer payments, since this category of expenditure does not reflect an increase in current production and is simply a transfer of part of government revenue to certain categories of persons.

The sum of consumer and government purchases represents final consumption. Household final consumption expenditure includes:

purchases of goods in the public and cooperative sectors, on the market, from private individuals and self-employed persons
purchases of market consumer services
rent and utility bills
payment for household services
purchasing vouchers to sanatoriums, holiday homes and boarding houses
payments for services of paid medical institutions
expenses for purchasing tickets for entertainment and entertainment events
payment for transport and communication services, legal and financial services
trade markup on goods purchased through consignment stores
value of products produced by households for own consumption

Thirdly, gross private domestic investment (I). They represent the expenses of the private business sector of a given state for the increase in investment in a given year (net investment), as well as investment goods intended to reimburse consumed machinery, equipment, instruments, etc., i.e. depreciation

fourthly, Some of the goods and services produced in the state are exported outside the state (export) and consumed in other countries, so they should be added. On the other hand, imported goods and services are worth subtracting because they are produced in other systems and do not reflect national production. Thus, the fourth component is net exports, i.e. difference between exports and imports (X).

Based on the above, GDP by end use is equal to:

Calculating GDP based on different components inevitably leads to discrepancies in its quantitative estimates. Most often, the discrepancies that arise are caused by the fact that the collected statistical data do not provide an absolutely reliable reflection of the quantitative content of economic transactions. In countries with a developed statistical service, such deviations are insignificant and at the GDP level, as a rule, do not exceed 1-2%. In statistical reference books, discrepancies between the values of GDP calculated in various ways, as well as some other macroeconomic indicators, are reflected in a special column "statistical discrepancies".