Regional Gross domestic product and Gross value added in regions
Regional Gross domestic product (GDP) is used to estimate the total value of end products or services produced within the territory of a region during a year.
Estimation of Regional gross value added by type of activity is based on the estimation of Gross value added (GVA) in the country. Regionalisation is performed on the basis of the local operation units indicated in the enterprise/ institution or organisation reports. If economic activity of a production unit takes place in several regions, its GVA is divided between the respective territories of regions, taking into account the number of employees involved in this activity in the respective territory.
Important notes:
- Starting with 2009 as the reference year, calculation of regional indicators is based on the source data, collected in line with NACE Rev. 2 classification. Regional GVA valuations are calculated in breakdown by 19 economic activities.
- In compliance with Commission Regulation No 715/2010 of 10 August 2010, along with the transition to the new version of Statistical Classification of Economic Activities in the European Community (NACE Rev. 2) and on the basis of the revised methodology of the European System of Accounts (ESA-2010) (Regulation No 549/2013) and other revisions, in 2014 regional data for 2000 - 2011 were recalculated, and regional indicators for 2012 calculated accordingly.
- According to Population and Housing census 2011 results the indicator GDP per capita in region for reference years 2000–2011 was recalculated in line with the data of the average number of residents in the region during the year revised in December 2012.
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Concepts and definitions
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Concepts and definitions
Gross domestic product by regions
Gross domestic product (GDP) represents the total amount of end products and services produced within the territory of a country during a year. It is calculated on the basis of data on domestic production (at current and constant prices), expenditure (at current and constant prices) and income (at current prices only).
Gross domestic product in Latvia from the production approach is used as the basis for calculations by region. It is the sum of Gross value added (at basic prices) of all types of economic activity or institutional sectors and net value of taxes on production. Net value of taxes on production is the difference between taxes on production and product subsidies.
Regional gross value added
Regional GVA is a measure of the economic activity of producer units resident in a region. In monetary terms GVA is expressed as a difference in value between the output of goods and services and intermediate consumption at current prices of the respective year.
Intermediate consumption represents the value of purchased goods and services that are used up in production (economic activity).
Economic activity (according to NACE Rev.2)
Economic activity characterises the process, which combines resources like capital goods, labour force, production technology or intermediate products needed to produce the specific goods or services. Thus the economic activity is characterised by investment of resources, manufacturing process and production (goods or services) output.
Statistical region
In compliance with the Order of the Cabinet of Ministers of 28 April 2004 "On statistical regions of Republic of Latvia and administrative units included in them" (Amendments: Order No 381 of Cabinet of Ministers (03.06.2009); Order No 759 of Cabinet of Ministers (28.12.2010).) and the Nomenclature of Territorial Units for Statistics (NUTS3) of the European Union, the data are calculated on 6 statistical regions:
- Riga region (Riga city);
- Pierīga region (Aloja county, Ādaži county, Babīte county, Baldone county, Carnikava county, Engure county, Garkalne county, Ikšķile county, Inčukalns county, Jaunpils county, Jūrmala city, Kandava county, Krimulda county, Ķegums county, Ķekava county, Lielvārde county, Limbaži county, Mālpils county, Mārupe county, Ogre county, Olaine county, Ropaži county, Salacgrīva county, Salaspils county, Saulkrasti county, Sēja county, Sigulda county, Stopiņi county, Tukums county);
- Vidzeme region (Alūksne county, Amata county, Ape county, Beverīna county, Burtnieki county, Cesvaine county, Cēsis county, Ērgļi county, Gulbene county, Jaunpiebalgas county, Kocēnu county, Līgatne county, Lubāna county, Madona county, Mazsalaca county, Naukšēni county, Pārgauja county, Priekuļi county, Rauna county, Rūjiena county, Smiltene county, Strenči county, Valka county, Valmiera city, Varakļāni county, Vecpiebalga county);
- Kurzeme region (Aizpute county, Alsunga county, Brocēni county, Dundaga county, Durbe county, Grobiņa county, Kuldīga county, Liepāja city, Mērsraga county, Nīca county, Pāvilosta county, Priekule county, Roja county, Rucava county, Saldus county, Skrunda county, Talsi county, Vaiņode county, Ventspils city, Ventspils county);
- Zemgale region (Aizkraukle county, Aknīste county, Auce county, Bauska county, Dobele county, Iecava county, Jaunjelgava county, Jelgava city, Jelgava county, Jēkabpils city, Jēkabpils county, Koknese county, Krustpils county, Nereta county, Ozolnieki county, Pļaviņas county, Rundāle county, Sala county, Skrīveri county, Tērvete county, Vecumnieki county, Viesīte county);
- Latgale region (Aglona county, Baltinava county, Balvi county, Cibla county, Dagda county, Daugavpils city, Daugavpils county, Ilūkste county, Kārsava county, Krāslava county, Līvani county, Ludza county, Preiļi county, Rēzekne city, Rēzekne county, Riebiņi county, Rugāji county, Vārkava county, Viļaka county, Viļāni county, Zilupe county).
Local unit
The local unit is an enterprise or part thereof (e.g. a workshop, factory, warehouse, office, mine or depot) situated in a geographically identified place.
At or from this place economic activity is carried out for which – save for certain exceptions – one or more persons work (even if only part-time) for one and the same enterprise.
Data collection and statistical processing
Survey method and source data
Data are obtained from the following data sources:
- CSB statistical report form 1-annual "Complex survey of activities" – corresponding data from the largest and from the others economically active units of production taking into account the number of employees and turnover.
- CSB annual statistical report form 1-KAU "Survey of the local KAUs activity" – local kind-of-activities (KAUs) survey from units, which provide 1-annual or 2-annual statistical report forms and have local KAU units; KAU economic activity’s codes (NACE Rev. 2) and corresponding number of employees at this unit.
- CSB statistical report form 2-annual "Complex survey of activities" – data from the budget-financed institutions.
- State Revenue Service data; from annual reports of companies – balance sheet, profit or loss indicators; revenue-expenditure account data on the activities of societies, foundations and trade unions, religious organisations and political organisations (parties) and their unions.
- Treasury data from annual statement on state budget execution: expenditure of public authorities by programme/subprogramme, related to persons employed outside the territory of Latvia.
- Statistical Enterprise Register.
- Indicators of the System of National Accounts of Latvia: key macroeconomic indicators.
Statistical population
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Enterprise coverage: economically active enterprises in the statistical regions of the Republic of Latvia in the reference year.
Calculation methods
Calculations are made in accordance with the guidelines provided for in Eurostat documents "Manual on Regional Accounts Methods-2013 edition" and "Manual on the Changes between ESA95 and ESA2010-2014 edition". The basis of these publications is Paragraph 13 "Regional accounts" (European System of Accounts. ESA 2010).
Regional gross value added (GVA) and GDP calculations are based on production estimation by type of activity, considering the indicators received from economically active units in the region.
- Regional GDP is calculated as the sum of value added of all types of economic activity or institutional sectors and taxes on production in the region less subsidies.
- In monetary terms Regional GVA is expressed as a difference in value between the output of goods and services and intermediate consumption at current prices of the respective year.
- Output is valuated as the result of production process and is calculated as the sum of market producer output, extra-market producer output and producer output for own end use. Output of institutional unit is calculated as its’ local KAU aggregate amount.
- Intermediate consumption represents the value of purchased goods and services that are used up for the needs of economic activity.
Data revision
In line with the Revision policy of the Macroeconomic statistics department data can be revised.
Comparability over time
1. Comparable data are available from 2000.
2. It should be noted that data recalculation for 2000 – 2008 in accordance with ESA 2010 methodology was carried out on the basis of the results of the previous recalculation made due to the introduction of NACE Rev.2, where depending on the availability of source data two methods were applied:
2.1. As a result, regional GVA for 2005–2008 was obtained in breakdown by 10 partially agregated groups of economic activities, dividing the respective result in Latvia by region, on the basis of the transcoded NACE Rev. 2 source data in line with the code correlation table:
- (A) Agriculture, Forestry and Fishing;
- (B, C, D, E) Mining and quarrying. Manufacturing. Electricity, gas, steam and air conditioning supply. Water supply, sewerage, waste management and remediation activities;
- (F) Construction;
- (G, H, I) Wholesale and retail trade; repair of motor vehicles and motorcycles. Transportation and storage. Accommodation and food service activities;
- (J) Information and communication;
- (K) Financial and insurance activities.
- (L) Real estate activities.
- (M,N) Professional, scientific and technical activities. Administrative and support service activities;
- (O, P, Q) Public administration and defence; compulsory social security. Education. Human health and social work activities;
- (R, S) Arts, entertainment and recreation. Other service activities.
2.2. As a result regional GVA for 2000–2004 was obtained in breakdown by 6 partially combined groups of economic activity, dividing the respective result in Latvia by region, on the basis of the results of 2005 recalculation to NACE Rev. 2 result:
- (A) Agriculture, Forestry and Fishing;
- (B, C, D, E) Mining and quarrying. Manufacturing. Electricity, gas, steam and air conditioning supply. Water supply, sewerage, waste management and remediation activities;
- (F) Construction;
- (G, H, I) Wholesale and retail trade; repair of motor vehicles and motorcycles. Transportation and storage. Accommodation and food service activities, Information and communication;
- (K, L, M, N) Financial and insurance activities. Real estate activities. Professional, scientific and technical activities. Administrative and support service activities;
- (O, P, Q) Public administration and defence; compulsory social security. Education. Human health and social work activities. Arts, entertainment and recreation. Other service activities.
Classifications
Data are available by the following classifications:
- Statistical Classification of Economic Activities in the European Community (NACE Rev. 2);
- Classification of Administrative Territories and Territorial Units of the Republic of Latvia (Cabinet Regulations No 271 of 28.04.2004);
- Classification of the Administrative territories and Territorial Units of the Republic of Latvia (CATTU, Rev. 28.12.2010);
- Statistical Regions of the European Union – 3rd level (NUTS 3);
- Institutional Sector Classification.