GDP by production approach:
Gross domestic product at basic prices (GDP) is also known as total value added, which is the sum of primary and secondary production less the sum of total production inputs.
To obtain such production we should use production inputs such as raw materials, energy, etc., and by subtracting them from total production we obtain total value added at basic prices.
GDP by expenditure approach:
GDP at current market prices by expenditure approach is calculated as an end-use sum less total imports.
GDP by income approach:
It is the gross income of the factors of production used in the production process, namely labor costs (wages, monetary and in-kind benefits), total operating surplus and mixed income (usually operating surplus is expressed as profit), and taxes on production (e.g. vehicle licenses, work permit fees, minus subsidies on production.
Estimates of the Gross Domestic Product (GDP) are used to measure the economic performance and plan the financial and monetary policies as they are considered to be one of the most important economic indicators in this field. These estimates become more useful when available at the level of economic activity within a period close to the current period so that they can be used to identify short-term economic plans and policies that can be followed by governmental institutions responsible for the monetary and fiscal policies.
Gross Domestic Product (GDP) is estimated based on the production method to prepare the quarterly GDP accounts, according to the most recent internationally agreed methodologies at different levels of details for the economic activities using the same methodology for preparing the annual estimates. This methodology requires preparing quarterly estimates of production and intermediate consumption of all economic activities in order to know the value added of each sector according to the International Standard Industrial Classification of All Economic Activities (ISIC), which – in total – constitutes the GDP.
The mechanism of extracting the quarterly estimates relies mainly on software approved by a group of international organizations called: “Benchmark”. This software uses the method of Denton’s Minor Squares (Fourth Formula) to derive the quarterly indicators, which were developed to harmonize the quarterly estimates with those of the annual estimates so that the total value of the estimates for the quarters are equal to annual estimates.
- Gross Domestic Product (GDP) at current prices
- Gross Domestic Product (GDP) at constant prices
- Gross Domestic Product (GDP) growth rate at current prices
- Gross Domestic Product (GDP) growth rate at constant prices
Quarterly estimates of the Gross Domestic Product (GDP) at current and constant prices and the growth rates by economic activity are published approximately 90 days after end of the quarter and in accordance with the Special Data Dissemination Standard (SDDS) standard. Thereafter, a press release is issued.