FBoS Release No: 51, 2015
31st August 2015
The Fiji Bureau of Statistics has completed its rebasing of the Gross Domestic Product (GDP) series to the year 2011. Data gathered from various sources was used to quantify the contribution of the various productive economic activities to GDP. GDP is the total market value of all final goods and services produced in a country in a given year and a rebase needs to be carried out at reasonable intervals of time to factor in structural changes taking place in the economy. The GDP will now be based on the structure of the economy in 2011.
The compilation procedures were in accordance with the United Nations System of National Accounts 2008 (SNA 2008). The economic activities are classified according to the Fiji Standard Industrial Classification (FSIC) 2010 which is based on the International Standard Industrial Classification Revision 4. Data for the compilation work was sourced from administrative records, surveys and special studies conducted by the Fiji Bureau of Statistics.
Industries have been assigned weights based on their contribution to the total net output of the economy in the base year. The total weight of the industries equals 100.0. Table 1 provides a comparison of the two base period weights for the various industries and their absolute change between 2008 and 2011. From Table 1 it can be noted that the Manufacturing Industry had the highest weight of 14.1 in 2011, which means it contributed 14.1 percent to the total net output of the economy in the 2011 base year.
Table 1: Comparison of 2008 and 2011 Weights
Note: Any discrepancy in totals and sum of components are due to rounding.
The Manufacturing industry has the highest weight in the 2011 base with 14.1 compared to 14.4 in 2008. The Wholesale and Retail Trade ranks second with 11.7 compared to 13.2 in 2008. The Financial & Insurance industry’s weight of 9.2 ranks it third followed by Agriculture’s (excluding forestry and fishing industries) 8.2 and Public Administration & Defence’s 7.6. The other industries followed with lower weights.
Lower production of taro and sugarcane contributed to a drop in the primary sector's weight in 2011.
Between 2008 and 2011;
- The combined weight of Industries increased by 1.5points.
- The Mining & Quarrying, Electricity and Water Supply & Sewerage industry’s weight increased by 1.2, 1.0 and 0.1 points respectively. The contribution of Mining & Quarrying improved due to the high volume of production by the industry in 2011 when compared to 2008. The Electricity industry also recorded an increase as a result of a decline in the fuel expenditure.
- The weights of the Manufacturing and Construction industries decreased by 0.3 and 0.5 points respectively.
A significant increase was noted for Education and Public Administration & Defence industries however these were to some extent offset by the combined negative change of other service industries for 2011 resulting in a small increase of 0.4 points in the weight of the Service sector compared to 2008.
Changes in Growth Rates
The GDP estimates and growth rates for 2012 and 2013 released earlier by the Fiji Bureau of Statistics used the 2008 base. Those estimates have been revised using the 2011 base due to the following:
- The change in the Base year from 2008 to 2011 i.e. revaluing the current price GDP time series of goods and services using 2011 prices.
- Implementation of the 2008 SNA – which recommends the compilation of GDP using the Supply and Use Table.
- Availability of more recent and detailed annual business surveys.
- Improved compilation methodologies.
- Availability of new and suitable indicators.
- Newly rebased indicators for the estimation of Value Added by industries:
-The Consumer Price Index [CPI] with 2011=100.0 as its base.
-The Building Material Price Index [BMPI] with 2011 =100.0 as its base.
-Producer Price Index - Goods [PPI] with 2011=100.0 as its base.
-Export and Import Price Index [XMPI] with 2011=100.0 as its base.
-The Industrial Production Index [IPI] with 2011=100.0 as its base.
New Base Growth Rates
Graph 1: GDP at Constant Basic Price Growth Rate
Graph 2: Level of GDP at Constant Basic Prices
Table 2: Industry Contribution to GDP at Constant Basic Prices from 2012-2013
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