Information Note - Measures of the Economy

Measures of the Economy

There are several measures of the economy used in the National Accounts. These measures are all linked together with some money amounts included in one item, but not in another. We can examine these linkages through six of the major measures of the economy the CSO use in the National Accounts. These are:

• Output
• Gross Value Added (GVA)
• Gross Domestic Product (GDP)
• Gross National Product (GNP)
• Gross National Income (GNI) and
• Modified Gross National Income (GNI*)

Differences between these six measures are shown in the following walk-through using 2023 data. The six measures of the economy are highlighted in green, with the differences between them (additions or subtractions) in blue. The euro figure can be seen by hovering over the bar for each item and are also provided in the table below.

These 2023 estimates are taken from the July 2024 edition of the CSO's benchmark annual publication, the Annual National Accounts (ANA). Descriptions of some of the terms used are also provided below.

Description of terms used:

Output: the value of goods and services produced.

Intermediate Consumption: what is used up during the production process.

Gross Value Added (GVA): the value producers added to the goods and services they bought (Output minus Intermediate Consumption equals GVA).

Statistical discrepancy: the three approaches to GDP should theoretically give the same answer. A balancing item (statistical discrepancy) is displayed in the GDP accounts which is the difference between the estimate by each method and the official GDP.

Product and EU taxes: these taxes are things like Value Added Tax (VAT) Import Duties, Excise Duty, and Stamp Duty. 

Product and EU subsidies: subsidies are payments by Government (or the European Union) to producers of goods and services. 

Gross Domestic Product: like GVA, plus product taxes and minus product subsidies.

Net factor income from the rest of the world: this is described as a net figure because there are both outflows from Ireland and inflows into Ireland. Due to the presence of large foreign-owned corporations in Ireland, outflows are generally higher than inflows. These outflows from Ireland are mostly net profits that are made by foreign-owned corporations in Ireland, and which are paid to their owners abroad. 

Factor Income of redomiciled companies: in reaction to proposed changes to corporate tax rate changes in the United Kingdom and the United States, several multinational corporations relocated their group headquarters to Ireland.

Depreciation on R&D service imports, depreciation on aircraft leasing and trade in Intellectual Property: Intellectual Property (IP) is the right to use an idea in production. For example, a patent for a drug or rights to a song are Intellectual Property. IP is an asset that is used to produce other goods. Depreciation is a reduction in the value of an asset over time, due to wear and tear.

For further details on these and many other terms used in the national accounts, see the National Accounts Explained section of our website.