Key figures for the national accounts (GDP)
What is the Danish Gross Domestic Product (GDP) and what has the real growth been in recent years? Key figures for the national accounts show the main results for the Danish economy such as GDP, economic growth, balance of demand and supply, imports and exports, etc.
Explainer on…
Gross domestic product, GDP, indicates the size of a country's economy. GDP can be calculated in three ways:
- Gross domestic product (GDP) in market prices is calculated from the production side by subtracting from production at market prices the total value of intermediate consumption at buyer prices.
- It can also be calculated from the income side as compensation of employees plus the surplus of production and mixed income plus taxes on production, net.
- Finally it can be calculated from the application side as the sum of all final uses in buyer prices minus the import of goods and services.
Capital formation includes both gross fixed capital formation and changes in inventories.
Gross fixed capital formation are expenditure for durable goods that are used in production processes for more than one year. E.g. it can be expenditure as regards to acquisition of machinery and equipment and for the construction of buildings as well as research and development.
Changes in inventories are the value of changes in the industries' inventories, e.g. increases in stocks of raw materials and manufactured goods in the manufacturing industry and stocks within wholesale and retail trade.
Household expenditure on goods and services for final consumption as well as final consumption expenditure of NPISH (non-profit institutions serving households, e.g. sports associations, trade unions and private schools).
Government consumption expenditure is divided into individual and collective consumption expenditures.
The government expenditure on individual consumption is expenditure on services that are consumed by individuals, e.g. a wide range of services within education and health sectors.
Collective consumption expenditure is expenditure on services that are consumed collectively, e.g. defense and the judiciary.
Time series assessed on a monthly or quarterly basis are often affected by phenomena that appear at the same time every year. The time series are said to be subject to seasonal effects. When making a seasonal adjustment, you try to remove seasonal effects from the time series.
Selected statistics on Key figures for the national accounts (GDP)
Quarterly real growth in GDP
The source basis for the quarterly national accounts consists of statistics on economic activity, business structure, and prices. The different versions of the quarterly accounts and the different approaches to compiling GDP are based on different sources. The first edition of the quarterly national accounts for a given quarter is calculated relatively shortly after the end of the quarter. Consequently, fewer sources are available for these estimates, and in many cases, the sources are preliminary. An important source for the calculations is therefore also the final and preliminary annual national accounts, which form the structural starting point for projections using available indicators.
The primary sources for the first two estimates of a given quarter are:
First estimate (published approx. 50 days after the end of a quarter): Production and turnover in manufacturing industries, Purchases and sales by enterprises (partly), Stocks of manufacturers and wholesalers, Retail turnover index, Balance of payments and International trade statistics, Producer and import price indices for commodities, Producer price index for services, Consumer price index, Net price index, Financial Intermediation Services Indirectly Measured (FISIM), as well as a preliminary internal estimate of government consumption.
Revised estimate (published approx. 90 days after the end of a quarter): Same as the first estimate, plus statistics on financial corporations, the working time accounts, and statistics on general government.
For both the first and revised estimates, GDP is compiled using the production approach and expenditure approach. The production approach relies on extrapolation using production indicators due to limited intermediate consumptions sources. Extrapolation is also applied on the expenditure approach, as well as direct source data from the primary statistics such as the governmental expenditure, balance of payments, and FISIM.
For the production approach, production and turnover in manufacturing industries, together with purchases and sales by enterprises are used as sources to compile GDP. No detailed data are available for intermediate consumption thus, intermediate consumption, for given quarter, is based on calculation rules where the share of intermediate consumption relative to production in the same quarter the previous year is used for the quarter being compiled. Moreover, agriculture uses specific statistics on output quantities and prices, while manufacturing and services rely on general indicators. Source data on taxes and subsidies on goods and services, as well as FISIM come from internal deliveries to the quarterly national accounts. Deflation of the production side is based on the producer and import price indices for commodities and intermediate consumption through a price model utilised by the quarterly national accounts.
For the expenditure approach, private consumption is based on Purchases and sales by enterprises, Retail turnover index, grocery scanner data, and spending monitor data from Danske Bank. Source data on government expenditure come from internal deliveries. Gross fixed capital formation is based on sales of goods by manufacturing industries and the balance of payments. Inventories are computed using production and turnover in manufacturing industries together with stocks of manufacturers and wholesalers. Imports and exports are based on the balance of payments and international trade statistics, with adjustments for economic ownership and specific classifications. Deflation of the expenditure side is based on the consumer price index and net price index.
For the income approach, compensation of employees comes from the Working time account, while source data on taxes and subsidies on goods and services, as well as on other production taxes and subsidies come from internal deliveries. Gross operating surplus and mixed income is computed as a residual once the gross value added, compensation of employees, and taxes on other production are known.
In addition, supplementary information is collected to a lesser extent, primarily to ensure that the national accounts achieve full coverage. The supplementary information mainly consists of publicly available data on enterprises’ activities, products, and developments, obtained from company websites, newspapers, and similar sources. It may also come from direct contact with enterprises and public authorities.
Annual GDP and imports by purpose
Data sources include:
Administrative data, accounting statements, tax data, statistical surveys of businesses and households, trade statistics on goods and services, balance of payments information and energy accounts.
For an overview of sources on industry level see Branchefordelt kildeoversigt (In Danish).
Revisions in the compilation of GDP
Data sources include:
Administrative data, accounting statements, tax data, statistical surveys of businesses and households, trade statistics on goods and services, balance of payments information and energy accounts.
For an overview of sources on industry level see Branchefordelt kildeoversigt (In Danish).
On the statistics – documentation, sources and method
See the documentation of statistics to learn more:
The national accounts are a description of a country's economy and its development. It consists of a description of the economy as whole and the economic transactions between individuals, companies and institutions. The national accounts also include transactions between Denmark and abroad. The first Danish national accounts date back to the 1930's. Consistent time series of annual national accounts goes back to 1966, while quarterly national accounts are available as of first quarter 1990.
The statistics National Accounts by sectors, are part of the national accounts system and consist of coherent definitions and classifications that show how the income of the sectors is created, distributed and redistributed. They provide both a description of the economy in general and of the transactions between persons, enterprises and institutions. The national accounts also include transactions between Denmark and the rest of the world. This set of statistics was first published in 1982. Coherent annual time series are available back to 1995, while quarterly figures are available from the first quarter of 1999 onwards.
The quarterly national accounts provide a comprehensive and up-to-date description of the economy and its development. The main focus is on short-term economic fluctuations, making it particularly useful for business cycle analysis, assessing economic conditions, and as a basis for economic models and forecasts. The statistics describe the economy as a whole, including transactions between households, businesses, and institutions, as well as transactions between Denmark and abroad. It has been compiled since 1988 and is fully comparable from first quarter 1990.