Statistical Yearbook of the Czech Republic

Notes on tables

Tables 5-1 and 5-2. Goods and services account shows real flows of goods and services in the economy. It records total resources (output and imports) of goods and services and their uses broken down into intermediate consumption, final consumption, gross capital formation (of fixed capital, including valuables and changes in inventories) and exports. It also records taxes and subsidies on products, as the output is valued at basic prices and the uses at purchaser ones.

       There is no balancing item in the account - the account is balanced. It is part of the national accounts for the national economy as a whole.

       The time series of the indicators is governed by the methodology of the European System of Accounts (ESA) 1995 in general. However, all of the requirements resulting from complete harmonisation with principles applied within the European Union have not yet been incorporated into the methodology. The data for 2001 and 2002 are taken over from aggregates of quarterly estimates.

Characteristic of indicators and the methodological approaches used

       Each indicator (transactions and other flows) is coded in national accounts; in accordance with the international standard of the European System of National Accounts of 1995 (ESA95), as follows: transactions in goods and services are designated with code P, distributive transactions with D, balancing items with B, transactions in financial instruments with F, and other items of accumulation with K. Stocks of non-financial assets presented in opening and closing balance sheets are designated with code AN and stocks of financial assets including other accounts receivable/payable with AF.

      Output (gross turnover) of goods and services (P.1) is the value of market and non-market goods and services produced by resident units on the territory of the Czech Republic in a given period. It is composed of:

• market output (P.11), which includes, above all, sales of goods and services of own production, margin and changes in inventories of work in progress and goods;
• bank services, which is the difference between received and paid interest of banks (or financial intermediation services indirectly measured) - FISIM (P.119);
• output for own final use (P.12) - i.e., especially the capitalization of goods and services, agricultural output of households for own consumption, and estimated rental of households living in own houses and dwellings;
• other non-market output (P.13), which is the difference between operating expenses spent by government and non-profit institutions serving households on the one hand and their sales of goods and services and output for own final use on the other hand.

      Domestic product - gross (B1.g) or net (B1.n) - at purchaser prices: total output at purchaser prices of resident producers minus their intermediate consumption plus import taxes; in other words, it is the sum of value added added (gross or net) of individual sectors and import taxes (which are not allocated by sector), or it is also the sum of final consumption, gross capital formation and external trade balance. Net domestic product is the difference between gross domestic product and fixed capital consumption (B1.g minus K.1).

      Imports (P.7) and exports (P.6) of goods and services: are derived from trade balance. They include the consumption of Czech citizens abroad and of foreign citizens in the Czech Republic (the latter being is estimated from sales/purchases of foreign currency) and the so-called direct trade costs abroad.

      Taxes on production and imports (D.2): are indirect taxes, which include taxes on products and other taxes on production:

• taxes on products (D.21): include VAT, customs duties, import taxes (consumer tax on imports, import surcharges and compensation related to imports), consumer taxes, payments for permanent exclusion of agricultural land out of agricultural land resources, various fees (spa fees, recreational stay fees, from advertising facilities, administrative fees).
• other taxes on production (D.29): include, e.g., real estate tax, road tax, payments for the purpose of regulation, payments for temporary exclusion of agricultural land from agricultural land resources, air and water pollution charges, penalties for delayed withdrawals and taxes, etc.

• subsidies on products (D.31) - mostly compensation for losses in production and providing of services; They include, e.g., subsidies on passenger transport, on heat or contributions to subsidized organisations.
• other subsidies on production (D.39) - especially subsidies to cover losses, subsidies on intentional reduction of mining and quarrying activities and subsidies to enterprises which employ persons with reduced capacity to work.

• individual consumption expenditure (P.31): expenditure of general government determined within the scope of non-market services in education, health, housing, refuse disposal, culture, sports, etc. Final consumption expenditure of non-profit institutions serving households is derived as non-market output of these institutions and the whole of it is considered to be individual consumption expenditure. Individual consumption expenditure of households includes, above all, purchases of goods and market services, calculated rentals for households living in own residential houses, goods produced by households for own consumption (fruits and vegetables), goods and services provided free of charge or at a discount, and purchases of Czech tourists abroad (estimated from the balance of payments figures).
• collective consumption expenditure (P.32) of general government is the difference between total non-market output of all organizational components of the state, territorial self-governing units, universities, and, to some extent, semi-budgetary organizations incorporated into the general government sector and non-market output of services for individual consumption.

       Collective consumption expenditure of general government is actual final consumption of general government (P.42). Actual final consumption (P.4) is then equal to the sum of all expenditures on final consumption.

      Gross fixed capital formation (P.51)): includes acquisitions and disposals of tangible (P.511) and intangible (P.512) assets of durable nature, whose price exceeds CZK 20 thousand, i.e., new fixed assets; costs of big repairs; upgrading of fixed assets; changes in livestock for breeding, draught, dairy, etc.; acquisitions and disposals of existing fixed assets; and costs incidental to changes in ownership of fixed assets. They do not include, e.g. goods worth less than CZK 10 thousand, durables purchased by households, goods designed only for military purposes bought by government (not usable in the civilian sector), expenditure on R&D and market survey, etc.

      Changes in inventories (P.52)): include, first of all, materials and supplies (assets of gradual consumption), work in progress, semifinished products of own production, finished products and livestock for slaughter, goods for resale, strategic reserves held by government, and constructions reported by producers. Acquisitions less disposals of valuables (P.53) refers to the difference between acquisitions and disposals of precious stones and metals, antiques and other works of art.

      Valuation

       Because of transport costs, trade margins and taxes less subsidies on products, the producer and the user of a given product usually perceive its value differently. In order to be as close to the views of the transactors as possible, the system records all uses at purchaser prices, which include transport costs, trade margins and taxes less subsidies on products, while output is recorded at basic prices, which exclude these components. Total imports and exports are valued at the exporter's customs frontier, or free on board (FOB). Foreign transport and insurance services between the importer and exporter's frontiers are not included in the value of goods but are recorded under services.

      Basic price price is the price receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable on that unit as a consequence of its production or sale (i.e., taxes on products), but plus any subsidy obtained on this unit due to its production or sale (i.e. subsidies on products). It excludes all transport charges invoiced separately by the producer. It includes all transport margins charged by the producer on the same invoice, even if they are included as a separate item on the invoice.

      Purchaser price price is the price the purchaser actually pays for a product at the time of purchase. It is composed of the basic price plus and minus the following items:

      This valuation is in compliance with the methodology of the European system of accounts 1995 (see Chapter 1, points 1.54 and 1.55 and Chapter 3, points 3.06 and 3.48) of the ESA95 for details.

Other tables in the chapter National Accounts

      By the closing date of the Statistical Yearbook 2003, the time series of the system of national accounts of the CR for the years 1990 to 2002, into which new methodological approaches of computing certain indicators are gradually implemented for the indicators to fully comply with standards of the EU, had not yet been fully revised. The revision should be completed before May 2004. For this reason no other tables concerning national accounts are given in this Yearbook. Annual national accounts of the CR for the years 2000 to 2002 will be released in a standard publication in late 2003, and the time series starting from 1990 will be presented in a separate publication to be brought out in July 2004.