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Production calculation changes
On the up? Or down?
Turnover from prostitution, the drug trade and other illegal activities have been taken into account in the calculation of Spain’s Gross Domestic Product for the first time – to the tune of €26,193 million.

On the up? Or down?

15.10.2014 -

The G. D. P. rose by €26,193 million in 2013 and now reaches €1,049 billion thanks to the inclusion of various illegal activities as well as changes to the calculation of Research, Development and Innovation.

In total, illegal and unregulated activities, including gambling and contraband businesses, were estimated as making up 0.87 per cent of the GDP in 2010 – around €9,100 million.  Prostitution provides the greater slice of this area of the market, being about 0.35 per cent, followed by drugs trafficking at 0.5 per cent (€5.245 millions.)

However, it isn’t the inclusion of illegal activities that has had the greatest impact on the rise in GDP, this falls to the way expenditure on Research, Development and Innovation are recognised (1.17 per cent in 2010: more than €12,200 millions).  At the same time spending on military arms represents 0.17 per cent of the GDP, around €1,780 millions.

The Spanish National Statistics Institute has publicised the up to date and complete series of the national accounts from 2010 to 2013 and as we go to press details going as far back as 1995 will be published, in line with European legislation.

The change in calculation method and new statistics reveal that the Spanish economy fell by 2.1 per cent, more than the 1.6 per cent estimated by previous calculations, and also fell by 0.6 per cent in 2011 rather than the 0.1 per cent which was previously proclaimed.

However, the year on year variation of the GDP stayed the same, with a fall of 1.2 per cent, but the revised levels show clearly the fall in nominal GDP during the last four years: according to the INE the volume of the economy was: €1.080 billions in 2010; 1.075 billions in 2011; 1.055 billions in 2012 and 1.049 billions en 2013.

The estimations for illegal activities have been made by following the procedures established by Eurostat which are now in place to ensure that these types of activities can be compared across countries. Cars, Hotels, Transfers
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