The National Statistics Office said today, that last year Non-Financial corporations continued to be key players in the economy, with a share of 54.5 per cent of Gross Value Added. The General Government sector had a share of 18.3 per cent.
An analysis of the contributions to Gross Value Added of the resident institutional units that make up the economy is seen in the chart. The Financial corporations sector increased its contribution to the total Gross Value Added from 5.6 per cent in 2005 to 7.4 per cent last year. On the other hand, the economic weight of Non-Profit Institutions Serving Households (NPISH) was relatively limited at 1.5 per cent of Gross Value Added.
Typology of institutional sectors
The basic economic unit in National Accounts is known as the institutional unit. It is an elementary, economic decision-making centre characterised by uniformity of behaviour and autonomy in the exercise of its principal function. Institutional units are grouped into sectors based on principal activity and function, economic behaviour and objectives. The distinction of sectors within National Accounts makes it possible to measure the role of key contributors in the economy: their production, income and use of income, investments and net worth. The accounts for sectors record all the activities, whether principal or secondary, of the institutional units covered.
The resident institutional units that make up the total economy are grouped into the following five mutually exclusive institutional sectors:
(i) Non-financial corporations (S.11)
(ii) Financial corporations (S.12)
(iii) General government (S.13)
(iv) Households (S.14)
(v) Non-profit institutions serving households (S.15)
Corporations (financial and non-financial) are institutional units created for the purpose of producing goods or services for the market. Government units organise and finance the provision of non-market goods and services to households and the community at large and, therefore, incur final consumption expenditure. They may also engage in non-market production themselves and are also concerned with the distribution and redistribution of income and wealth through taxation and other transfers. Households are primarily consumer units, but can engage in any kind of economic activity. They not only supply labour to enterprises but may also operate their own producer units in the form of unincorporated enterprises. Non-profit institutions serving households (NPISHs) are institutional units created for the purpose of producing or distributing goods or services, and not for generating any income or profit.