Central Statistics Office

Gaeilge

 Skip navigation

Extra information
Methodology Previous Releases
International comparison:
See also:
YouTube Video
For more information on this release:
E-mail: nat_acc@cso.ie Michael Brennan (+353) 1 498 4322 Pat Fanning (+353) 1 498 4367
For general information on CSO statistics:
information@cso.ie (+353) 21 453 5000 Visit StatCentral.ie, the portal to Ireland's official statistics On-line ISSN 2009-096X
CSO statistical release, 20 November 2014, 11am

National Accounts Output and Value Added by Activity

2011

Output, intermediate consumption and value added, 2011€ million
  
P.1Output331,594
P.2Intermediate consumption175,091
B.1gValue added  156,503
Note: output and value added are given at basic prices.

Value of Output €332 billion in 2011

Components of Output at basic prices 2011

This release presents Gross Domestic Product (GDP) for 2011 as estimated using the Output Method (also known as the Production Approach). The estimates conform to the new ESA2010 framework and hence are  comparable to those outlined in the National Income and Expenditure (NIE) and Quarterly National Accounts publications which are produced using the Income and Expenditure Methods.  The sectoral classification used is NACE Rev. 2 in terms of 64 industry groups.

In line with EU recommendations, it is planned to integrate this approach into the Income and Expenditure compilation process. Pending this integration however, the estimates of GDP using the Output Method should be considered as transitional.

For 2011, output (the value of all goods and services) at basic prices for the total economy was €331.6 billion. Intermediate consumption totalled €175.1 billion which, when deducted from output, resulted in value added at basic prices (GDP) of €156.5 billion. 

The main constituents of output at basic prices in 2011 were service industries at €210.0 billion (63.3% of the total), production industries at €104.6 billion (31.5%), construction at €9.6 billion (2.9%) and agriculture, forestry & fishing at €7.5 billion (2.2%). Within the services and production industries, information and communications (€44.8 billion) and pharmaceuticals (€38.7 billion) respectively were the chief contributors.

ESA 2010, which became operational this year, is the European version of the current UN mandated international standards for national accounts statistics, the System of National Accounts (SNA) 2008.  For Ireland, the ESA 2010 change with the greatest impact on gross domestic product (GDP) is the new treatment of research and development (R&D) expenditure which is no longer treated as an ancillary cost to the main production of an enterprise, but instead is recognised as capital investment. This is reflected in the Output Method estimates through lower intermediate consumption and increased gross value added relative to output, as calculated under ESA95. Care is required therefore in comparing the present results for 2011 with the estimates previously published for past years.

 

 
Table 1 Output and value added by activity, 2011
 € million
ESA A64 codeNACE Rev.2 (division)ActivityP.11P.12P.13P.1P.2B.1gD.29 - D.39B.1g-D.29+D.39
Market outputOutput for own final useOther non-market outputTotal output at basic pricesIntermediate consumptionValue added at basic pricesNon product taxes less subsidiesValue added at factor cost
            
01-0301-03Agriculture, forestry and fishing
0101 Crop and animal production, hunting and related service activities5,6381,03506,6734,8281,845-1,5153,359
0202 Forestry and logging38700387232156-25181
0303 Fishing and aquaculture3930039321018351132
01-0301-03Total agriculture, forestry and fishing6,4181,03507,4535,2702,183-1,4893,671
            
04-2605-39Production industries        
            
0405-09Mining and quarrying1,236001,23675548114467
            
05-2310-33Manufacturing industries        
0510-12 Manufacture of food products, beverages and tobacco products22,4060022,40615,3667,041776,964
0613-15 Manufacture of textiles, wearing apparel and leather products369003692051648156
0716 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials600006004341660166
0817 Manufacture of paper and paper products496004963131832181
0918 Printing and reproduction of recorded media915009155803365331
10-1119-20 Manufacture of coke and refined petroleum products; Chemical industry5,743005,7432,9332,81152,805
1221 Manufacture of pharmaceutical products38,7440038,74423,36815,3765415,321
1322 Manufacture of rubber and plastic products1,163001,16377139118373
1423 Manufacture of other non-metallic mineral products1,231001,2318443876382
1524 Manufacture of basic metals584005844531314127
1625 Manufacture of fabricated metal products, except machinery and equipment1,266001,26674152410514
1726 Manufacture of computer, electronic and optical products9,231009,2316,3102,921372,884
1827 Manufacture of electrical equipment746007465212242222
1928 Manufacture of machinery and equipment n.e.c.2,240002,2401,29494611936
2029 Manufacture of motor vehicles, trailers and semi-trailers610006104461645159
2130 Manufacture of other transport equipment2330023314093093
2231-32 Manufacture of furniture; Other manufacturing8,697008,6974,1234,574144,560
2333 Repair and installation of machinery and equipment588005883252630263
05-2310-33Total manufacturing industries95,8620095,86259,16736,69525936,436
            
2435Electricity, gas, steam and air-conditioning supply5,581005,5812,4353,1462032,943
            
25-2636-39Water supply; sewerage, waste management and remediation activities        
2536 Water collection, treatment and supply1503383531731802178
2637-39 Sewerage, waste management and remediation activities89806541,551786765240525
25-2636-39Total water supply; sewerage, waste management and remediation activities91309921,905959946243703
            
04-2605-39Total production industries103,5910992104,58363,31641,26771940,549
            
 
 € million
ESA A64 codeNACE Rev.2 (division)ActivityP.11P.12P.13P.1P.2B.1gD.29 - D.39B.1g-D.29+D.39
Market outputOutput for own final useOther non-market outputTotal output at basic pricesIntermediate consumptionValue added at basic pricesNon product taxes less subsidiesValue added at factor cost
            
2741-43Construction8,71978609,5877,1742,413252,388
          
28-6445-99Service industries        
          
28-3045-47Wholesale and retail trade; repair of motor vehicles and motorcycles        
2845 Wholesale and retail trade and repair of motor vehicles and motorcycles1,643001,6434601,18331,181
2946 Wholesale trade, except of motor vehicles and motorcycles17,6340017,63410,2917,3431017,242
3047 Retail trade, except of motor vehicles and motorcycles10,5750010,5754,1626,41356,408
28-3045-47Total wholesale and retail trade; repair of motor vehicles and motorcycles29,8520029,85214,91314,93910914,830
          
31-3549-53Transportation and storage        
3149 Land transport and transport via pipelines3,00002403,2401,7401,500421,458
3250 Water transport507005073541523149
3351 Air transport6,109006,1094,0792,0291761,853
3452 Warehousing and support activities for transportation2,206002,2068211,386711,315
3553 Postal and courier activities1,258001,2584198393836
31-3549-53Total transportation and storage13,080024013,3207,4135,9072955,612
          
3655-56Accommodation; food and beverage service activities5,311005,3112,1503,161583,103
          
37-4058-63Information and communication        
37-3858-60 Publishing, audiovisual and broadcasting activities14,91803314,9516,4678,484478,437
3961 Telecommunications3,740003,7401,0222,718302,688
4062-63 Computer programming, consultancy and related activities; information service activities26,1080026,10821,0465,062615,000
37-4058-63Total information and communication44,76603344,80028,53616,26413816,125
          
41-4364-66Financial and insurance activities        
4164 Financial service activities, except insurance and pension funding19,1880019,1888,55910,6296810,560
4265 Insurance, reinsurance and pension funding, except compulsory social security12,2160012,21610,4101,806101,796
4366 Activities auxiliary to financial services and insurance activities4,962004,9622,6762,286162,270
41-4364-66Total financial and insurance activities36,3660036,36621,64514,7219414,627
          
4468Real estate activities5,29910,172015,4714,99810,47315510,319
            
 
 € million
ESA A64 codeNACE Rev.2 (division)ActivityP.11P.12P.13P.1P.2B.1gD.29 - D.39B.1g-D.29+D.39
Market outputOutput for own final useOther non-market outputTotal output at basic pricesIntermediate consumptionValue added at basic pricesNon product taxes less subsidiesValue added at factor cost
            
28-6445-99Service industries (contd.)        
            
45-5369-82Professional, scientific and technical activities; administrative and support service activities        
4569-70 Legal and accounting activities; activities of head offices; management consultancy activities6,268006,2681,7284,54094,531
4671 Architectural and engineering services; technical testing and analysis1,555001,5556888670867
4772 Scientific research and development 3950834781003799369
4873 Advertising and market research663006631185453542
4974-75 Other professional, scientific and technical activities; veterinary activities648006482434057398
5077 Rental and leasing activities6,324006,3241,4934,832304,801
5178 Employment activities985009851598261825
5279 Travel agency, tour operator and other reservation services and related activities33400334652691268
5380-82 Security and investigation activities; services to buildings and landscape activities; office administrative, office support and other business support activities2,3570322,3897061,68321,680
45-5369-82Total professional, scientific and technical activities; administrative and support service activities19,529011519,6445,29914,3456414,282
            
5484Public administration and defence; compulsory social security0012,24612,2465,8846,36356,357
            
5585Education1,636010,06811,7032,6379,067-319,097
            
56-5786-88Human health activities; Social work activities2,824012,62415,4483,45511,992111,991
            
58-6490-99Arts, entertainment and recreation activities and other services        
5890-92 Creative, arts and entertainment activities; libraries, archives, museums and other cultural activities; gambling and betting activities1,57402901,8642231,641211,620
5993 Sports activities and amusement and recreation activities8880289162236936687
6094 Activities of membership organisations95209301,8821,596287-68355
6195 Repair of computers and personal and household goods101001014259-160
6296 Other personal service activities85700857310547-98645
6397-98 Activities of households as employers of domestic personnel; undifferentiated goods- and services-producing activities of households for own use1790017901790179
6499 Activities of extraterritorial organisations and bodies1000108202
58-6490-99Total arts, entertainment and recreation activities and other services4,56101,2495,8102,4023,408-1403,548
28-6445-99  163,22510,17236,575209,97299,332110,640749109,891
           
01-6401-99All NACE economic sectors281,95311,21438,427331,594175,091156,5034156,499
            

Background Notes

Introduction

This release presents the results of the calculation of Gross Domestic Product (GDP) by the CSO using the Output Method for the year 2011.

The Output Method (also known as the Production Approach) is an alternative approach to the estimation of GDP and over time these new estimates will be integrated into the National Income and Expenditure (NIE) publications. At present, the NIE includes estimates of GDP using the Income and Expenditure Methods. All estimates of GDP are now compiled in line with the European System of Accounts 2010 (ESA2010) standards, which came into effect from mid-2014. This calculation of GDP using the Output Method is transitional work to enable the CSO to meet future reporting requirements.

Methodology

As the Output Method measures GDP as the difference between the value of output less the value of goods and services used in producing these outputs, the basic elements are therefore output, intermediate consumption and value added (output less intermediate consumption).

Output includes production of goods and services supplied or intended for supply to units other than their producers, including those used up in the production process. Also included are own-account production of goods retained by their producers for their own final consumption or gross fixed capital formation and own-account production of housing services produced by owner-occupiers.

Excluded from the production boundary are domestic and personal services produced and consumed within the same household.

CSO data sources

The underlying definitions used are those of the ESA2010. The methodology used is described in the ESA2010 manual.

The following published sources are used in the compilation of the Output and Value Added tables.  

 Annual Services Inquiry

 Balance of International Payments

 Census of Building and Construction

 Census of Industrial Production

 Household Budget Survey

 National Income and Expenditure

 Output, Input and Income in Agriculture

 Quarterly National Household Survey

 

Other data sources

Considerable use is made of published reports of government departments, semi-state bodies and financial institutions. Company accounts and administrative records are also used.

Part of the compilation process is an examination of the consistency between this data and the Income Method data, which is based mainly on administrative sources.

Although the GDP figures are broadly consistent with the figures published in the NIE 2013 publication, some inconsistencies remain. The following are some of the causes of these inconsistencies: 

Non-response and data errors. Survey data and administrative records are both subject to non-response and data errors. The approach for correcting these may give different results. 

Definitions/concepts. There are differences between the definitions/concepts used for the data collected in the surveys and the definitions/concepts applying to the data collected from administrative sources. The data from administrative sources are converted as far as possible to National Accounts definitions/concepts. 

Activity coverage. The coverage of some activities in the SBS differs from the coverage of data collected from administrative sources. A variety of methods are used to estimate the aggregate total for each sector.

Company/enterprise. The SBS collect data from companies, some of which have complicated organisation structures. Data from administrative sources do not always map to the same structure, i.e. for a particular enterprise, there might be a single survey response covering the whole group of companies, whereas several separate responses for companies within the same group might be contained in the administrative records. As a result, components of such groups may be classified to different activities in the Output and Income methods, respectively.

 

Classifications

The activity classification used is NACE Rev. 2. For National Accounts purposes, the economy is classified by 64 activities using this Eurostat ESA2010 A64 coding scheme. Some activities have to be combined due to confidentiality. The corresponding NACE Rev. 2 division codes are also shown.

Definitions

Output at basic prices covers the value of all goods produced for sale, including unsold goods, and all receipts for services rendered. Output furthermore covers the market equivalent of goods and services produced for own use, such as own account capital formation, services of owner-occupied dwellings and agricultural products produced by farmers for own consumption. The output of such goods is estimated by valuing the quantities produced against the price that the producer would have received if these goods had been sold.

Output is valued at basic prices, defined as the price received by the producer excluding trade and transport margins and the balance of taxes and subsidies on products. This is the price the producer is ultimately left with.

 Some special cases:

  • Distributive trade, i.e. retail / wholesale trade in goods where no physical transformation occurs. The value of these services is the difference between the sales value and the purchase value of traded goods.
  • Real estate activities not only include services of non-residential buildings and rented dwellings, but also of owner-occupied dwellings. The latter are valued on the basis of rents of comparable rented dwellings.
  • Banking mainly deals with financial intermediation, i.e. the acquisition, transformation and issuing of financial assets. The compensation for these services is implicitly included in the interest paid to and received from banks. The value of these imputed bank services is calculated as the margin received by banks on loans and paid by banks on deposits.
  • Insurance and pension funding mainly transforms individual risk into collective risk. The value of these services is set as the difference between contributions and benefits. In the case of pension funds and life insurance companies, corrections are made for changes in actuarial reserves.
  • Government mainly produces collective services. Since there are no market prices available, government output is determined from production costs and is estimated as the total of intermediate consumption, compensation of employees, consumption of fixed capital and taxes on production paid by the government itself.

Market output is the output of goods and services sold at economically significant prices.

Non-market output is the output of own account production of goods and services provided free or at prices that are not economically significant. Non-market output is produced mainly by the general government and non-profit institutions serving households (NPISH) sectors.

Output for own final use is the production of output for final consumption or gross fixed capital formation by the producer. This is also known as own-account production.

Intermediate consumption at market prices includes all goods and services used up in the production process in the accounting period, regardless of the date of purchase. This includes for example fuel, raw materials, semi-manufactured goods, communication services, cleansing services and audits by accountants. Intermediate consumption is valued at purchasers' prices, excluding deductible Value Added Tax (VAT). For companies, which do not need to charge VAT on their sales, the VAT paid on their purchases is non-deductible. It is therefore recorded as a component of intermediate consumption.

Not included in intermediate consumption are:

  • Purchases of goods by retail / wholesale enterprises which are resold without undergoing any processing.
     
  • Purchases of goods used in the production process with a life span of more than one year. These purchases are recorded as fixed capital formation. The use of these goods is spread over their economic life span  and recorded as consumption of fixed capital.

Gross Value Added (GVA) is conceptually the same aggregate as Gross Domestic Product (GDP). They both measure the added value generated in an economy by the production of goods and services. The difference between the two concepts is that GDP is measured after including product taxes (e.g. excise duties, non deductible VAT, etc.) and deducting product subsidies while GVA is measured prior to adding product taxes but includes product subsidies. GVA can be computed for industrial groups and can be looked upon as the sum of wages and profits (compensation of employees and operating surplus in national accounts terminology) in each industry group.

Gross Domestic Product at market prices is the final result of the production activity of resident producer units. It is the sum of the gross value added of the various industries plus taxes and less subsidies on products. It is presented in the accounts at market (or purchasers’) prices.

Net Domestic Product equals Gross Domestic Product minus consumption of fixed capital.

Value added at basic prices is the value generated by any unit engaged in production and the contributions of individual sectors or industries to gross domestic product. It is measured at basic prices, excluding taxes less subsidies on products. Value added at basic prices by industry is equal to the difference between output (basic prices) and intermediate consumption (purchasers' prices).

Value added at factor cost is calculated as follows:

Value added at basic prices

minus     Non product taxes

plus        Non product subsidies

=             Value added at factor cost

Consumption of fixed capital represents the depreciation of the stock of produced fixed assets as a result of normal technical and economic ageing and insurable accidental damage. The consumption of fixed capital is the depreciation of the net stock of produced fixed assets during the year not caused by revaluations because of price changes, new fixed capital formation or discarding of fixed assets.

Taxes on production and imports are compulsory payments to the government and the European Union (EU), which are related to production, imports and to the use of production factors. Taxes on production and imports are classified into taxes on products and other taxes on production.

Taxes on products are related to the value or the volume of products. They are levied on domestically produced or transacted products and on imported products. Taxes on products include taxes on domestic products, taxes on imports and VAT.

Other taxes on production include all taxes on production paid by producers, not related to the value or volume of products produced or transacted. Examples are rates and licences.

Subsidies are current payments from the government or the EU to producers with the objective to influence output prices, employment or the remuneration of production factors. Subsidies include subsidies on products and other subsidies on production.

Subsidies on products are related to the value or the volume of products. They can be separated into subsidies on domestic products and subsidies on imports.

Other subsidies on production include all subsidies on production paid to producers, not related to the value or volume of products domestically produced or transacted. These consist mainly of certain payments to farmers, e.g. Rural Environment Protection Scheme (REPS).

Compensation of employees is the total remuneration paid by employers to their employees in return for work done. Employees are all residents and non-residents working in a paid job. Managing directors of limited companies are considered to be employees; therefore, their salaries are also included in the compensation of employees. The same holds for people working in sheltered workshops. Compensation of employees includes both wages and salaries and employers' social contributions.

Gross operating surplus by industry is the balance that remains after deducting from the value added (basic prices) the compensation of employees and the balance of other taxes and subsidies on production. The operating surplus of the self-employed is called mixed income, because it includes compensation for work done by the owners and their family members. Net operating surplus / mixed income remains after deducting consumption of fixed capital from gross operating surplus / mixed income.

upArrowHide Background Notes