Annual Accounts

ِAnnual Accounts

The Annual Accounts Department Which is a representative of the National Accounts Directorate. It provides of high important economic indicators that assist decision-makers and policy makers in planning and making appropriate decisions. These indicators also serve researchers and economic analysts. These indicators are also used in the program study of international comparisons (ICP).

The division relies to estimate these indicators on international publications issued by United Nations, the International Monetary Fund and other international bodies.

Surveys carried out by the Department are the main source for these estimations as well as many other administrative sources.

Within the General Department of Statistics endeavors in keeping up and implementing new standards and methodologies internationally agreed upon, in order to issue various statistics the Department issued new series of Gross domestic product estimations (base year 2016).

It is worth to mention that several improvements have been Inserted on Applicable methodologies and data sources which Contributed in improving both coverage and estimations quality, furthermore taking into consideration many of updates provided by the System of national accounts policy 2008.

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Methodology of economic activities estimations

Agriculture, hunting, forestry and fishing activities

Estimation’s for field crops, saplings, vegetables and fruits Production are prepared according to agricultural surveys data carried out by the Department of Statistics annually.

 Production is valued at basic prices; meanwhile intermediate consumption is estimated at purchasers’ prices.

The value added generated from the activities of the crops production is estimated from deducting the value of intermediate consumption from the value of production.

For the production and the intermediate consumption of forestry and deforest, data are provided by the Directorate of Forestry under the Ministry of Agriculture, such as quantities of firewood, coal and reeds.

Animal production consists of the increase in the number of animals and poultry due to new births, as well as production of milk, table eggs, hatching eggs, wool production, manure, fishing, fish farming and honey production in addition to secondary activities carried out by animal production divisions.

Livestock surveys carried out annually by the Department of Statistics are the primary source of estimates, as well as estimations of intermediate consumption.

Quarrying and manufacturing industries.

The Department of Statistics provides the required data to prepare accounts for such activities (e.g. production and intermediate consumption) through the implementation of an annual survey of industrial establishments.

Estimates are made of some industrial activities such as olive oil production, slaughterhouse production and clothing production in qualified industrial zones according to other administrative sources.

Production is estimated at basic prices but intermediate consumption at purchasers’ prices its detailed data obtained from the results of the industrial survey feedback. The value added can be obtained by deducting the intermediate consumption value from the value of production.

 

Electricity, gas, steam and air conditioning supplies.

Operating establishments involving in producing and distribution of electricity are covered by the annual survey of the industrial establishments where the necessary data such as production and intermediate consumption are obtained. The value added generated by deducting the value of intermediate consumption d from the value of production.

Water supply, drainage activities, waste management and treatment.

Data of the establishments which are managing the production and distribution of water are to be covered by the annual survey of industrial establishments where the value of production and intermediate consumption are calculated, the value added generated from deducting the intermediate consumption from the value of production can be obtained.

Construction.

The Department of Statistics provides necessary data to prepare the accounts of these activities (such as production and intermediate consumption) through the implementation of an annual survey for registered contractors’ activities and the complementary  survey to collect data on construction cost and license issued by the operating municipal councils at the Kingdom. Also the generated value added can be obtained from deducting intermediate consumption value from production value.

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Wholesale and retail trade and repairing of motor vehicles and motorcycles.

The Department of Statistics provides necessary data for preparing accounts of these activities (production and intermediate consumption) through implementing annual survey of wholesale and retail trade covering registered business Establishments.

The value of production at current prices is to be measured by the Total value of trade margins achieved on goods purchased for resale, secondary production and commissions. The value added can be obtained by deducting the value of intermediate consumption from the value of production.

Activities of accommodation and food services.

Data of services survey carried out by the Department of Statistics annually and periodically are to be considered the main source for the preparation of the accounts related to these activities to provide detailed data on production, intermediate consumption, etc. and the value added generated by deducting the intermediate consumption value from the production value.

Information and communications.

Data of services survey carried out by the Department of Statistics  annually and periodically are to be considered the main source for the preparation of the accounts related to these activities to provide detailed data on production, intermediate consumption, etc. and the value added generated by deducting the intermediate consumption value from the production value.

Transport and storage.

The Department of Statistics provides necessary data needed to prepare accounts for such activities (as production and intermediate consumption) through the results of annual surveys of establishments operating in transport sector.

The value of production for this sector is estimated by amounts received for the carriage of goods or persons via roads, air and sea, mail services, other services and assistance related in transport and storage activities.

Financial and insurance activities

The Department of Statistics collects comprehensive annual statistical data for all entities working in Financial Brokerage through unified forms in order to provide necessary data for estimating production, intermediate consumption, the value added components and capital formation, etc., which are estimated as follows:

  1. The different depository institutions production Is Estimated at basic prices as an aggregate of Financial Brokerage services which it’s measured in the indirect way (FISIM), beside commissions, profits of currency exchange and other secondary activities.
  2. As for The Insurance activities their production is the value of calculated services of insurance.

Real Estate Activities

Data on these activities are obtained from surveys conducted by the General Department of Statistics (Services, Household Expenditure and Income Surveys). These surveys provide detailed data on production, intermediate consumption, etc. The value added Estimated from deducting intermediate consumption Value from the value of production.

Professional, scientific and technical activities

Data of services survey implemented by the General Department of Statistics annually and periodically are considered to be the source of the basic data for preparing these accounts related to these activities to provide detailed data on production, intermediate consumption, etc., and the value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Administrative and Support Services

Data of services survey implemented by the General Department of Statistics annually and periodically are considered to be the source of the basic data for preparing these accounts related to these activities to provide detailed data on production, intermediate consumption, etc., and the value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Public administration, defense and social security

This activity includes Governmental organizations usually conducted by the public administration. Data for these activities are obtained from the Ministry of Finance, the Public Budget Department and the Ministry of Municipal and Rural Affairs, in addition to other institutions such as Greater Amman Municipality, Tourism Board and others.

Government institutions and units participate in non-market production processes. Since goods are provided free of charge or at nominal prices, the output produced by government units is evaluated by the total cost of its production,

It’s the total of employee compensation, intermediate consumption, net of other taxes on production and imports on these units, in addition to the consumption of the fixed capital.

Educational activities

It includes activities of public and private education at all levels and for all professions, and It’s includes education that is mainly concerned with sports, recreational and supporting education activities.

Private Education: Service Survey, carried out by the Department of Statistics, provides the required data for preparing  accounts related to such activities Such as production, intermediate consumption and others. The value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Government education: Data on educational activities are obtained from the Ministry of Finance and the Public Budget Department.

Production of these activities is estimated by total production costs, which Is the total compensation of employees, intermediate consumption, and other net taxes on production in addition to the consumption of the fixed capital.

Human health and social service activities

This activity includes providing health and social services For short or long periods in Public or Private care including a wide range of of activities, starting from health care provided by trained doctors in hospitals and other facilities, to house care that includes a wide range of health care activities, and the social work activities without any interference from technicians in the field of health care.

Human health and social service activities (Private)

The survey of services carried out by the Department of Statistics provides the required data to prepare accounts related to these activities such as production, intermediate consumption and others; the value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Human health and social service activities (Public)

Health activity data are obtained from Ministry of Finance and General Budget Department. The production of these activities are estimated by the total value of production which means the total of employees compensations, intermediate consumption and other taxes on production in addition to fixed capital consumption.

Arts, Entertainment & amusement:

Data of the services survey implemented by the Department of Statistics annually and periodically are considered to be the source of the basic data for preparing the accounts related to these activities to provide detailed data on production, intermediate consumption, etc., and the value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Other service activities:

Data of services survey implemented by the General Department of Statistics annually and periodically are the Main source of the basic data for preparing the accounts related to these activities to provide detailed data on production, intermediate consumption, etc., and the value added is obtained from generating the value of intermediate consumption deducted from the value of production.

Activities of households hiring individuals and household activities in producing non-distinctive goods and services for their own use.

They are Payable Domestic services provided by servants, chefs, nannies, gardeners, gatekeepers, drivers and babysitters, etc. Production Of this activity is estimated for this on the basis that it is equal to the value of compensation received by the servants, which consists of salaries and other benefits such as clothing and meals.

Activities of organizations and Commission not subject to national jurisdiction

It Includes activities of international organizations such as the United Nations, specialized agencies of the United Nations regulation, regional Commission and so on.

The service survey data implemented by the Department of Statistics annually and periodically is the source of the basic data for the preparation of accounts related to these activities.

As these activities are engaged in non-market production, production is estimated by cost method (total employee compensation, intermediate consumption, and net of other taxes on production and imports of these units plus fixed capital consumption).

Estimation of GDP at constant prices

Gross domestic product is estimated at constant prices by selecting a base year in which the prices are economically appropriate, So that it can support indexes number constructed to compare with the base year. Prices division Are responsible for providing all needed indicator to be used in the process of suppressive and correction so it can measured production and intermediate consumption of all economic activities using these figures:

  • Consumer Price Index (CPI)
  • Industrial producer price index (PPI)
  • Industrial Production Index (IPI)
  • Whole Sale Price Index (WPI)

In addition to other indices that are constructing for some economic activities that doesn’t have any data in the price division.

The Annual Accounts Division collects and receives data from the above mentioned sources, copy them on special tables to extract and publish the results. The division publishes the following various indicators and estimates:

  • Gross Domestic Product (GDP) by economic activity at current and constant prices by production method.
  • Gross Domestic Product (GDP) at current prices by income method.
  • Gross Domestic Product (GDP) at current prices by expenditure method.
  • Gross National Product (GNP).
  • Fixed Capital Formation by economic activity and by assets.
  • Use, Analysis and Construction of the Balance Of Payments tables received from the Central Bank.
  • Implementation of the System of National Accounts (SNA) – 1993 by institutional sectors and amendments to the 2008 system.
  • Preparing the Satellite Accounts tables of the sectors, including the tourism sector.

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