| Gross domestic product (GDP) illustrates the final result of the activity of all entities of the national economy (resident producer units - domestic) in a given year. The exact definition and methodology for calculating GDP is contained in the regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA 2010). GDP value can be calculated in three ways: • from the production side GDP is the sum of value added of all institutional sectors or all sections of the Polish Classification of Activities (PKD) of domestic production entities plus taxes less subsidies on products, • from the distribution side GDP is calculated as the sum of domestic demand, i.e. final consumption expenditure and gross capital formation as well as external balance of goods and services, • as the sum of uses in the total economy generation of income account (compensation of employees, taxes less subsidies on production and imports, gross operating surplus and mixed income of the total economy). Personal remittances comprise personal transfers and compensation of employees. Personal transfers consist of all current transfers in cash or in kind made or received by resident households to or from non-resident households. Personal transfers thus include all current transfers between resident and non-resident individuals. Compensation of employees refers to the income of border, seasonal, and other short-term workers who are employed in an economy where they are not resident and of residents employed by non-resident entities. Data are the sum of two items defined in the sixth edition of the IMF's Balance of Payments Manual: personal transfers and compensation of employees. The methodology used is in line with the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6). |
