Brief Introduction

Statistics on national accounts include mainly four parts, namely, gross domestic product, input-output table, flow of funds table and balance of payments table.

I. Gross Domestic Product

Data on GDP are computed by the Department of National Accounts of the National Bureau of Statistics (NBS) based on different approaches in the light of the different features of various sectors, various expenditure structures and different data sources. Gross National Income (GNI) can be calculated on the basis of GDP on top of which is added the net factor income from the rest of the world.

Data on GDP and related indicators of the most recent year published in the Yearbook are not final and are subject to changes when more information from financial data and administrative records become available. Where a census has been conducted, historical data of GDP of the previous years may also undergo change. The Second Economic Census was conducted in 2008, according to the GDP Accounting Methodology in the Year of Economic Census , GDP in the Census year should be recalculated , and historical GDP data from 2005 to 2007 have been revised by using trend deviation method. Data in the Yearbook are revised ones.

Gross Domestic Product (GDP) is a measurement of value which changes depending on changes of price and production. GDP at constant prices converts the gross domestic product based on the current price into a value based on the price of the base period. When adjusted for price changes, the values of two different periods can be compared to reflect changes of both products and production activities. GDP index is derived from the constant-price GDPs of the two periods. As economy grows, changes will take place in the price structures of various industries, and the base period for the measurement of constant-price GDP thus needs to be adjusted every few years in order to better reflect the impact of price change on the economy. Since China started GDP calculation, seven constant-price base periods have been used, i.e., 1952, 1957, 1970, 1980, 1990, 2000 and 2005, and the current base period is 2005. That is to say, the 2006 GDP is calculated on the basis of the 2005 prices. As the calculation of constant-price GDP is based on different base periods, the constant-price GDP data in this yearbook shall also be announced in accordance with various periods.

Regional data in this Yearbook are prepared from the national accounts data provided by the statistical bureaus of the provinces, autonomous regions and municipalities. The sum of the regional data is not equal to the national total due to the decentralized accounting approach.

II. Input-output Table

The Input-output table may be viewed as a table showing sector relationships and balances or one showing sector output relationships. Reflecting the sources of the input into, and the utilization of the output from, the production by various industries of the national economy, the input-output table takes the form of a chess-board shaped matrix format , and is used to reveal, in quantitative terms, the interrelated and mutually dependent economic and technological relationships among industries. The input-output table of China is compiled by the Department of National Accounts of the National Bureau of Statistics.

III. Flow of Funds Table

Similar to internationally accepted format, the Flow of Funds table of China constitutes a matrix of institutional sectors by transaction items. Items of transactions are expressed as row headings representing forms of distribution and methods of financing. Institutional sectors are shown as column headings, grouped by the characteristics of the transactors. There are 5 groups of institutional sectors in the flow of funds table, namely, non-financial corporations, financial institutions, general governments, households, and the rest of the world. Under each sector there are 2 headings: sources of funds and uses of funds. The current flow of funds table is composed of two parts: the first part, comprising the physical (real) transactions, is compiled by the Department of National Accounts of the National Bureau of Statistics; and the second part, comprising financial transactions, is compiled by the Research and Statistics Department of the People’s Bank of China.

IV. Balance of Payments Table

The Balance of Payments Table is compiled by the Balance of Payments Department of the State Administration of Foreign Exchanges in accordance with the 5^th edition of the Manual on Balance of Payments prepared by the International Monetary Fund.