The new accounting of GDP including drug trafficking and prostitution rises 26,200 million (figure of 2013)

National wealth as measured by the Gross Domestic Product (GDP) nominal (year 2013) increased by 26,193 million euros following the rebasing of National Accounts by the National Statistics Institute (INE), consulted by xero bookkeeper brisbane. This raises the nominal GDP 2.6%, from 1,022,988 to 1,049,181 million.

This change consists of basic methodological and statistical changes. The first arise from considering investment in R & D and military weaponry and the latter to take into account the contribution to the national wealth of illegal activities ( prostitution, drugs, smuggling and illegal gambling snuff ) and other things.

To perform these operations, the statistical agency has taken as its starting point the nominal GDP of 2010 (1.045.620 million euros). After applying the changes, this amount rises to 1,080,913 million euros, ie 35,293 million euros .

This increase in nominal GDP in 2010, methodological changes represent 1.55%, while illegal activities represent 0.87%. Specifically, prostitution is a drug 0.35% and 0.5%, equivalent to 9,187,000 (3,783,000 5,404,000 prostitution and drugs). Thus, a quarter of which increases the nominal GDP of 2010 as a result of rebasing is due to prostitution and drugs.

The INE said that to make their estimates of what they represent illegal activities for the Spanish economy has followed the methodology and procedures established by Eurostat , all in order that the figures of different countries are homogeneous and comparable.

“In all the illegal activities they have consulted scientific academic studies and both private and public, domestic and international , ” says the statistical agency, who recalled that the publication of these data compliance gives the order of the Commission European of all States to incorporate this month an estimate of what they represent illegal activities in their Gross National Income.

The recession, deeper

Taking the year 2010, the base change increases the weight of investment in nominal GDP and reduces consumption of households and government, the exports and imports. These first results based on 2010 correspond to the complete series from 1995 to 2013 annual national accounts. From that moment, all of the information distributed by the National Accounts will be in this new base. The changes introduced are derived from the adaptation of National and Regional Accounts of Spain to the rules of the new European System of Accounts (SEC 2010) approved in May 2013. Following these changes, the percentage of GDP of debt and the public deficit will be reduced in proportion to the increase in nominal GDP.

The new GDP base incorporates information from the census of population and housing 2011 and changes derivatives thereof in household surveys, and the revision of the Balance of Payments statistics. Once it made ​​the change basic GDP data published on its day suffer significant variations. Thus, although the fall in GDP in 2013 remains at 1.2%, that of 2012 (-1.6%) is extended five tenths, to -2.1%, and the figure for 2011 changes to sign : a growth of 0.1% is passed to a contraction of the economy of 0.6%.

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