General Overview

 National account

The National Accounts is a systematic framework that provides a great mass of detailed information about the working of an economy, based on a set of internationally agreed concepts, definitions, classifications and accounting rules. National accounts provide a comprehensive economic data in a format that is designed for purposes of economic analysis, decision-taking and policy-making. They provide a set of detailed data of complex economic activities taking place within an economy and of the interaction between the different economic agents, and groups of agents, that take place on markets or elsewhere.

National accounts information has particularly important uses in economic policy formulation, where key considerations include -

   · How is output divided between consumption and investment?
   · How dependent is the national economy on foreign trade?
   · How does output break down between different industries?
   · To what extent and in what ways do different decision-making sectors create saving for capital growth?       
   · How has the structure of output changed over the years?

The national accounts also provide a tool for monitoring the development of the national economy over time. The time perspective is particularly interesting in:

     · Analyzing the rate of GDP growth
     · Analyzing the rate of inflation
     · Analyzing the changing significance of different types of funding instruments
     · Analyzing the Macroeconomic
     · Monitoring the Behavior of the Economy
     · Economic Policy Making & Decision Taking
     · International Comparisons
     · Comparing industry structures in the national economy in the longer term.
        
National accounts information can be used to analyze individual components or aspects of the national economy. Examples include, Banking and finance and the role of general government.

Introduction of AfghanistanNational Accounts
In the aftermath of more than two decades of war, the whole statistical system collapsed and the administrative reporting system ceased to function.  Still, as of today, the statistical services are in the process of recover.  The war also severely disrupted the social and economic infrastructure and weakened the public administrative capacity and almost complete loss of the statistical base, institutional memories, and files in the key economic ministries.

From 1977 the national accounts statistics of Afghanistan was prepared on the basis of Material Product System (Soviet central planning system) estimating Net Material Product (NMP) by six branches at constant prices of 1978. After 1995, compilation of NMP was discontinued.  Since 1995 no national accounts had been prepared. 

Since mid-2002, Afghanistan CSO with the assistance of the IMF had been preparing national accounts estimates based on UN System of National Accounts (SNA) starting practically from zero.

Currently, the national accounts estimates are broadly following the concepts, definitions, and classifications of the System of National Accounts 1993 as the basic data availability permit.   However, based on current state of basic data, analytic and policy needs, and resources available for implementation, 1968 SNA concepts are applied in most cases. 

Afghanistan CSO compiles GDP by type of economic activity at current and constant prices and GDP by expenditure categories at current prices.

National Accounts Statistical Framework:
Since 2002, The GDP estimates are compiled broadly follows the concepts, definitions, and classifications of the SNA 1993, as for as the basic data availability permit. The GDP estimates are constructed in Afghanis (Afs) in both current and constant 1381 (2002/03) prices.  Currently the CSO is compiling GDP estimates by economic activities at current and constant prices and by expenditure categories at current prices. Value added by industrial activity is calculated as gross production less intermediate consumption for productive activities (agriculture and industry sectors and most part of services) and for some part of services the income approach is used. GDP by expenditure category is calculated as the sum of the final use of goods and services through final consumption, gross capital formation, and exports less imports.

Classification System
Classification systems used are broadly consistent with internationally accepted standards, guidelines, or experience. Afghanistan’s economical activities are classified in to three sectors such as Agriculture, Industry and Service, based on government, (ANDS) and (MDGs) requirement.

Periodicity of GDP compilation:
GDP estimates are compiled annually on the Solar year basis ending March 20, e.g. for the year 1387 the covered period is from 21 March 2008-20 to March 2009.The GDP estimates are published once a year in the Afghanistan Statistical Yearbook. For official operation and request of the users, the preliminary estimates are provided.