Explanatory Notes on Main Statistical Indicators
Gross Domestic Product
refers to the final products at market prices produced by
all resident units in a country (or a region) during a certain period of time.
From the aspect of value added form, GDP 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 inputs of non-fixed-assets products and services or
the summation of the value added of all resident units; the form of products
refers to all final goods and services minus imports of goods and services. In
the practice of national accounting, it is calculated by three approaches, i.e.
product approach, income approach and expenditure approach, respectively, to
reflect Gross Product and its composition of different aspects. According to
the national regulations of GDP, Tianjin Gross
Product Value is called Tianjin GDP for short.
Compensation of Employees
refers to the whole payment of various forms earned by the labourers from the productive activities they are engaged
in. It includes wages, bonuses and allowances the labourers
earned in monetary form and in kind. It also includes the free medical services
provided to the labourers and the medicine expenses,
traffic subsidies, social insurance fee and housing provident fund paid by the labourer’s working units for them.
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. 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
Net Taxes on Production
refer 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 sectors of production, such as fixed
assets, land and labour 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 are therefore regarded as
negative taxes on production. They include subsidies on the loss due to
implementation of government policies, price subsidies, etc.
Operating Surplus
refers to the balance of the value added created by the
resident units deducting the labourer’s 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.
Final Consumption
Expenditures
refer 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 consumption expenditure of non-resident units
on consumption in the economic territory of the country. The final consumption
is classified into households’ consumption and government consumption.
Households Consumption
Expenditures
refer to the total expenditure of resident households on
the final consumption of goods and services. In addition to the consumption of
goods and services bought by the households directly with money, the households
consumption also includes expenditure on goods and services obtained by the
households on other ways, i.e. the goods and services provided to the
households by the units in the form of payment in kind and transfer in kind;
the goods and services produced and consumed by the households themselves, in
which the services refer only to the owner-occupied housing and domestic
services provided by the paid household workers; financial intermediate
services provided by financial institutions; insurance services provided by
insurance companies.
Government Consumption
Expenditures
refer to the expenditure on the consumption of the public
services provided by the government to the whole society and the net
expenditure on the goods and services provided by the government to the
households at free charge or lower prices. The former equals to the output
value of the government services minus the value of operating income obtained
by the government departments, the output value of the government services
equals to its current operating expenditure plus depreciation of fixed assets.
The latter equals to the market value of the goods and services provided by the
government free of charge or at low prices to the households minus the value
received by the government from the households.
Gross Capital Formation
refers to the fixed assets acquired minus those disposed and
the net value of inventory, including the total fixed assets formation and the
increase in inventory.
Gross Fixed Capital
Formation
refers to the value of fixed assets acquired minus those
disposed of during a given period. Fixed assets are the assets produced through
production activities with specified unit value which could be used for over
one year, excluding natural assets. Total fixed capital formation can be
categorized into total tangible assets formation and total intangible assets
formation. The total tangible assets formation include the value of the
construction projects, installation projects completed and the equipment,
apparatus and instruments purchased as well as the value of land improved, the
value of draught animals, breeding stock, animal for milk, wool and for
recreational animals purpose and the newly increased forest with economic value
during a given period. The total intangible assets formation includes the
prospecting of minerals, the acquisition of computer software minus the
disposal of them.
Change in Inventory
refers to the market value of the change in inventory of
resident units during a given period, i.e. the difference of value between the
beginning and the end of the period minus the current gains due to the change
in prices. The increase in inventory can be positive or negative. A positive
value indicates the increase in inventory while a negative value indicates the
decrease in stock. The inventory includes the raw materials, fuel and reserve
materials purchased by the production units as well as the inventory of
finished products, semi-finished products, etc.
Net Exports of Goods and
Services
refer to the balance of the exports of goods and services
minus the imports of goods and services. The imports include the value of
various goods and services sold or gratuitously transferred by the resident
units to the non-resident units. The imports include the value of various goods
and services purchased or gratuitously acquired by the resident units from the
non-resident units. Because the provision of services and the use of them
happen simultaneously, the import and export of services do not appear to have
the phenomena of crossing the border of the country. The acquisition of
services by the resident units from abroad is usually treated as import while
the acquisition of services by non-resident units in this country is usually
treated as export. The export and import of goods are calculated at FOB. The
formula for calculating is as followed:
Net Export of Goods and
Services = Value of Export of Goods and Service - Value of Import of Goods and
Services