The economy increases the dependence on construction, the weight of agriculture decreases, we have less fun

2024-10-02 08:27:00, Ekonomi CNA

The economy increases the dependence on construction, the weight of agriculture

INSTAT has corrected the contribution of economic activities to the Gross Domestic Product (GDP) when revising the GDP measurement methodology.

The biggest correction has been made for the agriculture sector, which already has a lower contribution to the economy than before, also construction will have a higher contribution according to new data from INSTAT.

Before the revision, the contribution of agriculture to GDP was about 18.2% in 2023, while after the revision it was 16.2% in 2023. The decrease in the share of agriculture in the economy reduces the negative effect that the decline of the sector has on the total GDP.

Despite the downward revision, agriculture remains the sector with the largest contribution to GDP, with around 16.2% of the total.

On the other hand, construction has the largest increase in weight in the calculation of GDP with 1.84% points. The contribution of construction was 10.2% of the total GDP in 2023, but after the revision its weight went to 12.1% (see the chart below). With this review, the construction sector further increases its weight in the economy and in the result of the following GDP calculation.

The weight of sectors related to tourism was also revised with an increase. Activity "Trade; transportation; accommodation and food service activities" after correction contributed to 18.5% of GDP, from 17.1% under the old method in 2023.

With growth, the activity of professional services was also revised, which will contribute 7.2% of GDP from 5.9%, which was the weight of this group with the old method.

Real estate activity is revised down. After the correction, this group will contribute 4.8% of the GDP by 2023 from 5.9 that was before the correction.

The contribution of the group "Arts, entertainment and relaxation; Other service activities" which after correction will contribute 1.9% of GDP from 2.3% that was before.

The contribution of the information and communication group was revised down. From the 3.2% that was calculated, the contribution of this group to the GDP in 2023 after the revision will be 2.4%.

Also, the weight of financial and insurance activities was revised down to 1.6% of the total GDP from the previous 2.1%.

A few days ago INSTAT announced that it made a major revision of the way GDP is measured. Major revisions are regular processes of the National Accounts system, which are carried out at least once every 5 years, in a coordinated manner and in cooperation with Eurostat.

They aim to include new sources of information, improve existing sources, and implement international statistical methodological changes.

The previous review of the National Accounts was carried out in 2014, when INSTAT for the first time became part of the review cycle according to EU standards. The 2024 revision is the second revision of the National Accounts and includes the revision of data since 2018./ Monitor Magazine