Design of Economic Accounts and the 1993 System of National Accounts

Historical overview of the System of National Accounts

“…With that, the importance of the systematic framework for national accounts came to the attention of many pioneering economists and policy makers. As Carson (1996) states SNA 1953 provided a methodical framework for recording and presenting the main flows involved in production, consumption, accumulation and external economic relations. Further transactions of those accounts were categorizing under three basic sectors which are enterprises, households and private non-profit institutions, and general government.…”

“…On the word of Carson (1996)"Information relating to economic actions and the effects of events take place within a given period of time recorded as a flow and information relating to a position in, or holding of , assets and liabilities at point of time recorded as a stock". Though the measuring of economic activity is started from these basic concepts, by way of grouping, classifying and categorizing stocks and flows provides an more accurate and comprehensive measurement of the economic activities within the economy.…”

“…SNA 1993 describes that as a key aggregate it measures production, and it is widely used by analysts, politicians, the press, business community and the public at large as an indicator of the economy. According to Carson (1996) it can be derived according to three approaches -the demand approach, which is the sum of the expenditure by final users, the production approach, which is some of the value added and the income approach, which is the sum of the primary income of residents.…”

“…National savings relates to disposable income not used for final consumption. National Expenditure (NE) is final consumption plus gross capital formation by resident units (Carson, 1996).…”