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National Economic Accounts T HE C AYMAN I SLANDS’ S YSTEM OF N ATIONAL A CCOUNTS 2006-2007 JUNE 2009 THE ECONOMICS AND STATISTICS OFFICE PORTFOLIO OF FINANCE AND ECONOMICS SYSTEM OF NATIONAL ACCOUNTS REPORT 2007 Table of Contents Page ACKNOWLEDGEMENT................................................................................................. i ABBREVIATIONS AND ACRONYMS......................................................................... ii 1. EXECUTIVE SUMMARY .......................................................................................... 1 1.1 Importance of the SNA ............................................................................................ 1 1.2 Objectives................................................................................................................. 2 1.3 Key Data Sources..................................................................................................... 2 1.4 Overview of Results................................................................................................. 3 1.5 Organization of the Report....................................................................................... 5 2. INTRODUCTION TO THE SYSTEM OF NATIONAL ACCOUNTS .................. 6 2.1 Overview of the System........................................................................................... 6 2.2 Implementation of SNA ........................................................................................... 7 3. THE CAYMAN ISLANDS’ SYSTEM OF NATIONAL ACCOUNTS ................... 9 3.1 Overview of the Project ........................................................................................... 9 3.2 Business Register (BR) ............................................................................................ 9 3.3 Design and Testing of Survey Instrument.............................................................. 10 3.4 Survey Methodology.............................................................................................. 10 3.5 Data Extraction....................................................................................................... 11 3.6 Reference Period.................................................................................................... 11 3.7 Challenges.............................................................................................................. 11 3.8 Recommendations.................................................................................................. 12 4. KEY CONCEPTS AND DEFINITIONS.................................................................. 13 4.1 Classifications in the National Accounts ............................................................... 13 4.2 Institutional Unit and Sectors................................................................................. 13 4.3 Industries and Establishments................................................................................ 14 4.4 Measuring Gross Domestic Product (GDP)........................................................... 15 4.4.1 Measurement of total production ..................................................................... 15 4.4.2 Approaches to measuring GDP........................................................................ 17 4.5 The Production Approach ...................................................................................... 18 4.5.1 Gross output..................................................................................................... 19 4.5.2 Output of particular industries ......................................................................... 19 4.5.3 Intermediate consumption................................................................................ 22 4.5.4 Valuation of output, intermediate consumption and value added.................... 23 4.5.5 Taxes on production and imports..................................................................... 23 4.5.6. Subsidies on production and imports.............................................................. 24 Cayman Islands System of National Accounts SYSTEM OF NATIONAL ACCOUNTS REPORT 2007 4.6 Measuring Gross Domestic Product at Constant Prices......................................... 24 5. IMPLEMENTATION OF THE CAYMAN ISLANDS’ SNA ................................ 27 5.1 Introduction............................................................................................................ 27 5.2 Coverage of Industries ........................................................................................... 27 5.3 Data Sources .......................................................................................................... 27 5.4 Current Price Estimation........................................................................................ 28 5.5 Constant Price Estimation...................................................................................... 29 5.6 Revision Policy ...................................................................................................... 29 6. GDP BY INDUSTRY AT CURRENT PRICES: ESTIMATION METHOD ....... 30 6.1 Agriculture ............................................................................................................. 30 6.2 Fishing.................................................................................................................... 31 6.3 Mining and Quarrying............................................................................................ 32 6.4 Manufacturing........................................................................................................ 33 6.5 Electricity and Water Supply ................................................................................. 33 6.6 Construction ........................................................................................................... 34 6.7 Wholesale and Retail Trade and Repair Services .................................................. 35 6.8 Hotels and Restaurants........................................................................................... 35 6.9 Transport, Storage and Communications............................................................... 35 6.10 Financial Intermediation ...................................................................................... 36 6.11 Real Estate, Renting and Business Activities ...................................................... 37 6.12 Public Administration and Defence ..................................................................... 38 6.13 Education ............................................................................................................. 39 6.14 Health and Social Work ....................................................................................... 39 6.15 Other Services...................................................................................................... 40 7. GDP BY INDUSTRY AT CONSTANT PRICES: ESTIMATION METHOD..... 42 7.1 Introduction............................................................................................................ 42 7.2 Deflation Method Overview .................................................................................. 42 7. 3 Deflation by Industry ............................................................................................ 43 7.4 Conclusion ............................................................................................................. 46 8. GDP BY INDUSTRIAL ORIGIN: PRELIMINARY RESULTS.......................... 47 8.1 Introduction............................................................................................................ 47 8.2 GDP at Constant Basic Prices................................................................................ 47 8.3 Sectoral Contribution to GDP ................................................................................ 48 8.4 GDP Rate of Growth by Sector.............................................................................. 49 8.5 Sector GDP at Current Basic Prices....................................................................... 52 8.6 Detailed Value Added by Industries ...................................................................... 53 Cayman Islands System of National Accounts SYSTEM OF NATIONAL ACCOUNTS REPORT 2007 APPENDIX 1: INTERNATIONAL STANDARD of INDUSTRIAL CLASSIFICATION (REVISION 3.1)........................................................................... 55 APPENDIX 2: CENTRAL REGISTER OF ESTABLISHMENTS QUESTIONNAIRE......................................................................................................... 58 Cayman Islands System of National Accounts SYSTEM OF NATIONAL ACCOUNTS REPORT 2007 ACKNOWLEDGEMENT The estimation of the Gross Domestic Product is dependent on a wide range of data gathered from administrative records and specially designed surveys (ANAS), all of which involve the participation of a large number of persons and institutions. The Economics and Statistics Office (ESO) acknowledges the assistance and cooperation of all those persons, government departments and agencies, non-governmental organizations and the private sector that supplied the relevant data and anticipate their continued support. ESO extends its appreciation to the Bermuda and Jamaica Statistics Offices for their general support to the development of the project, and to the Caribbean Regional Technical Assistance Agency (CARTAC) for providing valuable comments and evaluating the final results. This report was produced by the
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