Glossary

Chain volume measures

An approach that uses the annually re-weighted chain linking to compile the volume measures of GDP.

Changes in inventories

The difference between the value of the closing and the opening inventories of an accounting period. Inventory includes all goods designated for intermediate consumption or commercial purposes such as materials and supplies, work-in-progress, finished goods and goods for resale.

Deflating

A process through which the current price estimate of different components of GDP is compiled to volume terms using the relevant price index to remove the effect of price changes.

Expenditure-based GDP

The sum of private consumption expenditure, government final consumption expenditure, gross fixed capital formation, changes in inventories and exports, less imports, which are valued at purchasers' prices in an accounting period.

Exports of goods

Commodities transported out of Macao, excluding transit and temporary export of goods.

Exports of services

Services sold or provided by residents of Macao to non-residents.

Financial Intermediation Services Indirectly Measured

Refers to the additional auxiliary services accompanied when banks are engaging in borrowing

and lending activities, namely setting up branches, automatic teller machines, network

such services are not collected directly from the depositors and borrowers, yet recovered indirectly through paying lower interest rate to the depositors and charging higher interest rate to the borrowers, which is known as Financial Intermediation Services Indirectly Measured (FISIM).

Total value of FISIM equals gross amount of the interest receivable less interest payable of banks; however, value of FISIM payable by various depositors or borrowers ought to be estimated indirectly, in which the 2008 SNA recommends to use the reference interest rate to compile and allocate FISIM among different depositors and borrowers.

Government final consumption expenditure

Government final consumption expenditure equals the value of the provision of goods and services by the institution. As the services produced and consumed are not for sale, they are valued at the cost of production that covers intermediate consumption, compensation of employees, consumption of fixed capital, less sales of goods and services. Government final consumption expenditure is subdivided into individual and collective consumption expenditure.

Individual consumption expenditure relates to personal goods and services acquired by households to satisfy the needs of household members, for instance, education, health, social security, recreation, cultural services, etc.

Collective consumption expenditure relates to collective services provided to the community as a whole, namely public order and security, maintenance of law, legislation and regulation, maintenance of public health, environmental protection, services of public facilities, research and development, etc.

Gross fixed capital formation

Total value of the producers’ acquisitions, less disposals, of fixed assets in an accounting period,

plus improvements to land and costs associated with the transfer of ownership of non-produced

and equipment;

- Cultivated assets: livestock or trees that grow continuously for more than one year for the production of other goods or services;

- Intellectual property products.

Gross fixed capital formation also includes buildings and other constructions work-in-progress, fixed assets produced for own use, major refurbishment, renovations and extensions made to the existing fixed assets, as well as real estate developers’ margin. Total value of acquisition of fixed assets includes transport costs, installation charges and costs of ownership transfer incurred by the purchaser, whereas value of disposal of fixed assets has to deduct any costs of ownership transfer incurred by the seller.

Gross output

Sum of the market value of goods or services sold by enterprises, the non-market value of goods or services produced for own use or provided by the government and non-profit institutions serving households (NPISHs), value of financial intermediation services indirectly measured (FISIM), as well as value of changes in the inventories. Gross output can be calculated at basic prices or producers’ prices. Basic price is the amount receivable by a producer for a unit of good or service provided, which excludes any taxes on the products concerned, while producers’

price is the amount receivable by a producer for a unit of good or service provided, which excludes any taxes on imports of the products concerned.

Gross value added

Gross output minus intermediate consumption.

Imports of goods

Commodities entered from abroad to Macao, excluding transit goods and re-imports.

Imports of services

Services acquired or purchased by residents of Macao from non-residents.

Intermediate consumption

Actual value of goods and services consumed as input during the production process, including any taxes on products but excluding fixed assets and valuables.

Other taxes on production

All types of taxes, except taxes on products, which an enterprise incurs as a result of engaging in production. They are levied on land, fixed assets or labour force employed in the production process or on certain activities or transactions. Such taxes do not include taxes on profits or other income received by the enterprise. In Macao, other taxes on production mainly include the followings that are paid by producers: industrial taxes, stamp duties, administrative licenses, fees collected by the Land, Public Works and Transport Bureau for issuing licenses, fees collected by the Macau Government Tourist Office for issuing licenses, taxes of justice, fees charged by the Registration and Notary Services, etc.

Private consumption expenditure

Sum of the value of expenses on goods and services consumed by resident households and non-profit institutions serving households.

Production-based GDP

Sum of gross value added of resident producers of all economic activities (industries) in an accounting period, plus relevant taxes.

Reference interest rate

Interest rate as recommended by the System of National Accounts, adopted to calculate the

amount of FISIM paid by depositors and borrowers. Reference interest rate excludes service

Reference year

A year to which the time series of the volume measures is referenced, with the objective to provide a reference time point for linking up the annual volume indices to obtain the time series of the volume measure.

Taxes on production and on imports

Taxes on products plus other taxes on production.

Taxes on products

Taxes that are payable per unit of goods or service at the moment when it is produced, sold,

imported, exported, leased, transferred, delivered or used for own consumption or own capital

formation. In Macao, taxes on products mainly include: excise duties, stamp duties on

transaction of properties, income from exclusive concessions of telecommunications, electricity

and water supply services, income from games of chance or other forms of gaming (i.e. gaming

tax), of which gaming tax predominates.