National Accounts: Sequence of Accounts, Italy

National Accounts: Sequence of Accounts, Italy Data source(s) used: The 3th October 2014 Istat released the new annual series of national accounts based on the new European System of Accounts (ESA 2010). At the same time, as in other European countries, the time series of national accounts have been subjected to an extraordinary revision, exploiting advances in methods and sources (e.g. the new balance of payments estimates issued by the Bank of Italy based on the new manual BPM6).GDP and expenditure components: It shows among the resources gross domestic product at market prices and imports; while the uses include final consumption, gross capital formation and exports.Production accounts: It shows the transactions relating to the production process proper. Its resources include output and taxes less subsidies on products, and its uses include intermediate consumption. The balance of this account is value added at an aggregate level, it can be used to obtain GDP.Generation of income account: It shows the destination of domestic product (NDP) to compensation of employees and indirect taxes less subsidies. It allows to calcolate the operating surplus that corresponds to the income which the units obtain from their own use of their production facilities.Allocation of primary income account: It shows how to arrive to net national income. It lists under resources: operating surplus, national compensation of employees, indirect taxes paid to the rest of the world, taxes less subsidies on production and imports, capital transfer receivable from the rest of the world.Secondary distribution of income account: It records the operations of redistribution performed by taxes, contributions, social benefits and other transfers with the Rest of the world. It allows to calcolate national disposable income.Use of disposable income account It shows the allocation of national disposable income between national final consumption expenditure and net national saving.Capital account: It records acquisitions less disposals of non-financial assets (mainly gross capital formation), measuring the change in net worth due to saving and capital transfers. The balance of this account is net lending or borrowing.International transactions account: It records all operations of distribution and redistribution occurring between residents and non residents. It allows to obtain net lending or borrowing towards the rest of the world.