§ Mr. SillarsTo ask the Chancellor of the Exchequer if he will list the elements of economic activity by which he measures gross domestic product; and whether there are any significant differences in measurement between the United Kingdom and other members of G 7.
§ Mr. Norman LamontEconomic activity, as measured by the gross domestic product (GDP), includes all those activities which result in the production of goods and services exchanged for money. These include the production of physical commodities, that is, the products 849W of the agriculture, extractive, manufacturing and construction industries. It also covers service-producing activities: transport and communication, wholesale and retail distribution, hotels and catering, financial services, hospitals and education, as well as public administration and defence.
Additionally, some activities not exchanged for money are included. Three main examples are: the provision of owner-occupied housing; the non-trading use of fixed assets owned by the Government and by private non-profit-making bodies; and the cost of employees' income in kind.
Further information on measurement of GDP may be found in the introductory section of the 1988 edition of "United Kingdom National Accounts", otherwise known as the "CSO Blue Book", and "United Kingdom National Accounts: Sources and Methods", both of which are available from the House of Commons Library.
GDP and other national accounts estimates supplied to international organisations are based on the United Nations system of national accounts (SNA). These estimates are similar to the Central Statistical Office's estimates appearing in the CSO Blue Book and other CSO publications, with small variations mainly reflecting presentation rather than differences of substance.