Statistics: Final consumption expenditure (constant LCU)
Definition: Final consumption expenditure (constant LCU)
Final consumption expenditure (formerly total consumption) is the sum of household final consumption expenditure (formerly private consumption) and general government final consumption expenditure (formerly general government consumption). Data are in constant local currency.
Development relevance: Final consumption expenditure (constant LCU)
Limitations and Exceptions: Final consumption expenditure (constant LCU)
Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total.
Statistical concept and methodology: Final consumption expenditure (constant LCU)
Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.