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The Expenditure approach uses all spending on final demand to produce an estimate for Gross Domestic Product. We do this by estimating:

  • personal expenditure on consumer goods and services
  • expenditure by central and local government on current goods and services
  • gross domestic fixed capital formation
  • value of physical changes in stocks

The value of exports is then added and imports are deducted.

The following tables show the contributions of the different components of the Expenditure approach to Gross Domestic Product at current market prices and at constant market prices.

Exports increased by 9.5% in 2020, while imports declined by 7.4% reflecting a decrease in imports of intellectual property. Fixed capital formation decreased by 23.0% in 2020. This was largely driven by the decrease in R&D related IP imports. For more information see Capital Formation. Personal consumption decreased by 10.4% while government net current expenditure rose by 10.9%, two series significantly impacted by COVID-19.

Figure 5.1 below shows the relative contributions of each of the components of expenditure.

Personal consumption of goods and servicesNet expenditure by local and central government on goods and servicesGross domestic fixed capital formationValue of physical changes in stocksNet exports of goods and services

For a further breakdown of personal consumption of goods and services go to Consumption of Personal Income.

For a further breakdown of gross domestic fixed capital formation go to Capital Formation.

Show Table: Table 5 Expenditure on Gross and Net National Income at Current Market Prices

Show Table: Table 5.1 Annual Percentage Changes in the Main Constituents of Table 5

Show Table: Table 6 Expenditure on Gross and Net National Income at Constant Market Prices (chain linked annually and referenced to year 2019)

Show Table: Table 6.1 Annual Percentage Changes in the Main Constituents of Table 6

Next Chapter >> Gross National Disposable Income