Gross Domestic Product (GDP) is considered one of the most important economic indicators monitored by decision-makers and stakeholders in the economic field of any country. This is because it allows for the measurement of the volume of economic activity, the production process, and overall economic performance—forming a foundation for economic analysis and policy-making.
This indicator is measured by official statistical agencies according to a set of internationally accepted and agreed-upon standards and concepts known as the System of National Accounts (SNA), which was developed and published under the auspices of the United Nations, the European Commission, the International Monetary Fund, the World Bank Group, and the Organisation for Economic Co-operation and Development (OECD).
The System of National Accounts is based on the inclusion of all material operations carried out by the management of an institutional unit using various production factors, such as labor and assets, to convert inputs of goods and services into marketable outputs—either sold in the market or transferred between units, whether for a price or free of charge.
The system also includes most household economic activities, such as the consumption and production of goods like agricultural products and foodstuffs for household self-consumption. It also covers individuals working in households, such as domestic workers, drivers, chefs, and others. The SNA recommends the inclusion of economic activities conducted by informal production units, whether these activities are legal or illegal.
GDP was estimated at both current and constant prices using the production approach, which involves calculating the total output minus total inputs. Each economic activity was studied separately, and its value added was calculated using a methodology appropriate to the activity type and the availability of the required data.
Price deflators for various economic activities were used based on the 2010 base year, applying a single deflator approach to estimate GDP at constant prices. This means that a direct deflator was applied to the value added from current price data to derive GDP at constant prices. The Consumer Price Index (CPI) and the Construction Price Index were used, and for some activities, quantity indices were used, developed based on international methodologies and practices.