Antigua and Barbuda: Discrepancy in expenditure estimate of GDP (current LCU) -13,690,000 April 14, 2021
Statistics: Discrepancy in expenditure estimate of GDP (current LCU)
|Date||1993 - 2018|
|Previous value||-160,000 (2017)|
Definition: Discrepancy in expenditure estimate of GDP (current LCU)
Discrepancy in expenditure estimate of GDP is the discrepancy included in final consumption expenditure, etc. (total consumption, etc.). This discrepancy is included to ensure that GDP from the expenditure side equals GDP measured by the income or output approach. Data are in current local currency.
Chart - Antigua and Barbuda: Discrepancy in expenditure estimate of GDP (current LCU) (1993 - 2018)
Development relevance: Discrepancy in expenditure estimate of GDP (current LCU)
Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.
Limitations and Exceptions: Discrepancy in expenditure estimate of GDP (current LCU)
Gross domestic product (GDP), though widely tracked, may not always be the most relevant summary of aggregated economic performance for all economies, especially when production occurs at the expense of consuming capital stock. While GDP estimates based on the production approach are generally more reliable than estimates compiled from the income or expenditure side, different countries use different definitions, methods, and reporting standards. World Bank staff review the quality of national accounts data and sometimes make adjustments to improve consistency with international guidelines. Nevertheless, significant discrepancies remain between international standards and actual practice. Many statistical offices, especially those in developing countries, face severe limitations in the resources, time, training, and budgets required to produce reliable and comprehensive series of national accounts statistics. Among the difficulties faced by compilers of national accounts is the extent of unreported economic activity in the informal or secondary economy. In developing countries a large share of agricultural output is either not exchanged (because it is consumed within the household) or not exchanged for money.
Statistical concept and methodology: Discrepancy in expenditure estimate of GDP (current LCU)
For more information, see the metadata for constant U.S. dollar GDP (NY.GDP.MKTP.KD) and total population (SP.POP.TOTL).