MAIN ENTRIES OF THE NATIONAL ACCOUNTS
The Gross Domestic Product (henceforth referred to as the GDP) is a measure of the value of the production in a society. It covers the value of all the production, from the primary sector with trades such as fishing and mining, to the manufacturing and construction business to service businesses such as health care, education, hairdressers, and passenger transport. The subsistence economy, including fishing for own use, is also included in the national accounts. GDP is calculated as the difference between the total production and the use of raw materials and semi-manufacture and is thus an expression of the added value of the production process in the different lines of business. The GDP is calculated in the prices which consumers and businesses actually pay for goods and services (market prices). These include production and import taxes such as taxes on spirits and cigarettes. Subsidies are subtracted, e.g. subsidies to energy supply and transport. The GDP amounted to DKK 11.063 million in 2007, equivalent to almost DKK 190.000 per capita.
The Gross Factor Income (henceforth referred to as the GFI) is a measure of the income available to employees and owners of businesses etc. It is calculated as the GDP minus production and import taxes, plus subsidies as these amounts are due to and paid by the government. Production and import taxes amounted to DKK 692 million in 2007, while the subsidies amounted to DKK 553 million. The GFI was slightly less than the GDP, at DKK 10.924 million, corresponding to approximately DKK 188.000 per capita. It is not only production, however, which creates income for society. A number of transfers between Greenland and foreign countries take place, the most important example being the block grant from Denmark, but also agreements with the EU ensure Greenland revenue. The gross national income and the available gross national income are thus an expression of the amount which is actually available for consumption and investments without having to take up loans abroad.
The Gross National Income (henceforth referred to as GNI) is calculated by adjusting the GDP for salaries to employees (net) who are Greenlandic residents abroad as well as investment income (net) received from Greenlandic residents abroad. According to an estimate, these items amount to DKK 242 million per year. This amount covers salaries to people who take work in Greenland for shorter periods (less than one year), e.g. health professionals, who after having paid taxes and living expenses take their salary home. This estimate also includes interest for debt incurred by households and companies abroad.
GNI amounted to DKK 10.821 million in 2007. This was equivalent to approximately DKK 184.000 per capita.
The Available Gross National Income (available GNI) is calculated by adding unilateral transfers to Greenland (net) to the GNI. These transfers include the block grant from the Danish state, the expenses incurred in Greenland by the Danish state and the transfer from the EU in connection with fishing licences.
In 2007, the transfers amounted to DKK 3.866 million, bringing the available GNI up to DKK 14.687 million or approximately DKK 250.000 per capita. The transfers from abroad mean an increase in national income of around DKK 60.000 compared to the income generated through production.
These figures for the years 2002-2007 are shown in Overview 1. A more detailed description can be found in the tables section.
Overview 1
Main Entries of the National Accounts
|
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
|
|
DKK million |
|
|
|
|
|
|
GDP |
9.223 |
9.397 |
9.855 |
10.112 |
10.636 |
11.063 |
|
Production and import taxes |
655 |
595 |
628 |
665 |
658 |
692 |
|
Subsidies |
654 |
593 |
570 |
624 |
564 |
553 |
|
GFI (1-2+3) |
9.222 |
9.395 |
9.797 |
10.071 |
10.542 |
10.942 |
|
Salaries to employees and investment income from foreign countries, net |
242 |
242 |
242 |
242 |
242 |
242 |
|
GNI (1+5) |
8.981 |
9.155 |
9.613 |
9.870 |
10.394 |
10.821 |
|
Unilateral transfers from foreign countries, net |
3.474 |
3.638 |
3.608 |
3.662 |
3.766 |
3.866 |
|
Available GNI (6+7) |
12.455 |
12.793 |
13.222 |
13.531 |
14.160 |
14.687 |
Source: Statistics Greenland