(C) Our World in Data This story was originally published by Our World in Data and is unaltered. . . . . . . . . . . Montevideo Oxford Latin American Database [1] [] Date: 2022-11 National Accounts Several National Accounts variables for which it has been possible to obtain wide coverage are presented. Six of these are related to total GDP. Five of them are a homogenous set of series that have been constructed based on ECLAC estimates with a 1970 base year: GDP at current prices 1970 local currency units. GDP at 1970 constant prices, 1970 local currency units. GDP at 1970 purchasing power parity dollars. Implicit GDP deflator, 1970 local currency units (1970 = 100). Implicit GDP deflator, current year local currency units (1970 = 100). In addition, a GDP at constant 1990 PPP prices is presented in order to allow broad international comparisons. The following series complete the national accounts section. Gross Agricultural value added at constant 1970 prices, in 1970 local currency units. Gross Manufacturing value added at constant 1970 prices, in 1970 local currency units. Gross Fixed Capital Formation. Gross National Savings. Foreign Direct Investment. External Debt. Nominal Exchange Rate in 1970 local currency units. GDP at current prices 1970 local currency units: Current GDP (1970 LCU/ECLAC) The primary source for GDP series is ECLAC. These series are based on ECLAC (1978), which provides GDP estimates based on factor costs at current prices. This source includes all of Latin America except Cuba. The start date for the series vary from country to country depending on the availability of data, but the end date for all of them is 1976. In some cases we have corrected a series, obtaining different annual variations, but maintaining the base level in 1970. Backward-projection: In a few cases it has been possible to gain access to other sources in order to obtain GDP series at current prices for periods prior to the start dates of the respective ECLAC series. In these cases the two series have been spliced together, using the annual variations of the new source. Projection: The permanent updating of national accounts leads to new estimates, with new base years, which in turn lead to revisions in the levels as well as the annual variations of the series. The method used here is to reconstruct the annual variations using the most recently available estimates. For example, a current price GDP estimate for 2010, with base year 2005, can show a change of 10% from 2005 to 2006, while a previously available estimate, with base year 1995, shows a 7% change. Similarly, the 2005 base year estimate can be 10% higher than the 1995 base year estimate. In accordance with the method used here, the annual variations in the most recently available series (10% for 2006/2005 in this case) is used, but the levels that arise from the original 1970 base year are maintained, even at current prices. GDP at 1970 constant prices, 1970 local currency units: Real GDP (1970 prices) The primary source for GDP series is the ECLAC. These series are based on ECLAC (1978), which provides GDP estimates based on factor costs at current prices. This source includes all of Latin America except Cuba. The start date for the series vary from country to country depending on the availability of data, but the end date for all of them is 1976. Backward-projection: The aforementioned series have been extended back in time using estimates of GDP by volume or comparable historical statistical compendiums. Because these series are more widely available than those for current prices, greater coverage is achieved. Projection. In the majority of cases, GDP estimates for after 1976 have been constructed by applying a GDP index in constant market prices (normally with a later base year). GDP at 1970 purchasing power parity dollars: “PPP GDP (1970 US$)” In order to compare GDP for different countries it is common to convert their level of production to a common unit of measure. This is usually done using the exchange rate or purchasing power parity (PPP). PPP is generally preferred because: (1) in low-income countries, where labor is much cheaper, the exchange rate tends to over-estimate the value of non-tradable services; (2) the exchange rate can reflect intervention in currency or capital markets; and (3) the reliability of the exchange rate can be affected by the volatility of capital movements (see Maddison, 2001, p. 162). The most commonly used sources for PPP conversion have been Heston and Summers (1991) and subsequent revisions, as well as the UN and OECD International Comparison Program (ICP), although this last source only covers 7 Latin American countries. MOxLAD employs the 1970 PPP conversion factors reported by ECLAC (1978) and uses them to project the GDP at constant prices series. The PPP rates are estimated based on a basket of goods that reflects regional consumption patterns in Latin America during the 1960s (see United Nations, 1968) and that were updated by ECLAC in 1970. The ECLAC PPP rates were chosen in order to maintain the consistency of the database, since the GDP at constant prices series reported by MOxLAD are also from ECLAC. This source has the additional advantage of covering all countries in the region, except for Cuba (see also GDP at 1990 purchasing power parity dollars). Implicit GDP deflator, 1970 local currency units (1970 = 100): “GDP Deflator (1970=100)” The primary source for the implicit GDP deflator is ECLAC (1978). Backward-projection: In a few cases it has been possible to gain access to other sources in order to obtain an implicit GDP deflator at current prices for periods prior to the start dates of the respective ECLAC series. In these cases the two series have been spliced together using the annual variations of the new source but maintaining 1970 as the base-year in which the index equals 100. Projection: The permanent updating of national accounts leads to new estimates, with new base years, which in turn lead to revisions in the levels as well as the annual variations of the GDP series as well as their implicit deflators. The method used here has been to reconstruct the annual variations with the most recently available estimates. For example, a current price GDP estimate for 2010, with base year 2005, can show a change of 8% from 2005 to 2006, while a previously available estimate, with base year 1995, shows a 4% change. In accordance with the method used here, the annual variations in the most recently available series (8% in this example) is used, but the levels that arise from the original 1970 base year are maintained. In addition, this deflator doesn’t take into account changes en currency units over time. In the 1970s and 1980s, inflation rates were very high in many countries and currency units were often changed. This series is constructed as if the currency unit of 1970 had never changed. The implicit GDP deflator using monetary unit current in each year is presented below. Implicit GDP deflator, current year local currency units (1970 = 100): “GDP deflator (1970=100, different LCU)” The primary source for the implicit GDP deflator is ECLAC (1978). Backward-projection. In a few cases it has been possible to gain access to other sources in order to obtain an implicit GDP deflator at current prices for periods prior to the start dates of the respective ECLAC series. In these cases the two series have been spliced together using the annual variations of the new source but maintaining 1970 as the base-year in which the index equals 100. Projection: The permanent updating of national accounts leads to new estimates, with new base years, which in turn lead to revisions in the levels as well as the annual variations of the GDP series as well as their implicit deflators. The method used here has been to reconstruct the annual variations with the most recently available estimates. For example, a current price GDP estimate for 2010, with base year 2005, can show a change of 8% from 2005 to 2006, while a previously available estimate, with base year 1995, shows a 4% change. In accordance with the method used here, the annual variations in the most recently available series (8% in this example) is used, but the levels that arise from the original 1970 base year are maintained. This series takes into account changes in monetary unit, i.e., the index is calculated in the monetary unit current in each year. This means that a series that has an value of 11500.0 in one year can have a value of 12.0 the next year, if the monetary unit is divided by 1000; for example, if 1000 pesos are converted to 1 new peso. This set of procedures for the GDP series with base year 1970 gives more weight to comparability between countries and change over time than to consistency in levels for any one country. We would like to emphasize that these series should not be used as a substitute for the original sources when studying individual countries. GDP at 1970 purchasing power parity dollars: “PPP GDP (1990 US$)” The 1970 ECLAC estimates have the advantage of being part of a larger set of internally consistent estimates. However, this set of estimates is restricted only to Latin America and is not comparable to other estimates with greater international coverage. Because of this, an alternative measure of PPP GDP is presented. This measure is proposed by A. Maddison (2010) and uses 1990 as a base-year in order to facilitate international comparisons. These two sources not only present different levels with respect to countries outside of Latin America, but also present differences between Latin American countries. Table 4 compares the PPP GDP per capita at constant prices, calculated for 1990 with that results from projecting the ECLAC series and the figures that arise from Maddison for the same year. As can be seen, Maddison’s estimates place the unweighted average for Latin America at 21.8% of the US level, while the ECLAC estimates place it at just 11.7% of the US level. The differences between the two sources in the relative positions of different Latin American countries are also significant. For example, according to the ECLAC, the average of the rest of Latin America with respect to Argentina was 49%, while according to Maddison it was 79%. Official PPP estimates for Cuba do not exist (see Pérez-López, 1991). Consequently, the ratio between the 1980 PPP rate for Cuba and the average 1980 PPP rate for Argentina, Brazil, Chile, Colombia, México and Venezuela from Brundenius and Zimbalist (1989, pp. 53, 58) and the average rate from ECLAC (1978, p. 8) is used to estimate the 1970 PPP rate for Cuba. Table 4 GDP per capita in PPP dollars, 1990. Relative to the US and Argentina Country According to CEPAL (dollars de 1970) Maddison (dólares de 1990) According to CEPAL (dollars de 1970) Maddison (dollars de 1990) Argentina 23.8 27.7 100 100 Bolivia 5.4 9.5 23 34 Brazil 9.1 21.2 38 76 Chile 16.8 27.6 71 100 Colombia 10.8 20.8 45 75 Costa Rica 13.0 20.5 55 74 Cuba s.d. 12.7 s.d. 46 Rep. Dom 7.4 10.7 31 38 Ecuador 7.1 16.8 30 61 El Salvador 8.0 9.1 34 33 Guatemala 8.9 14.0 37 50 Haiti 2.4 4.3 10 16 Honduras 5.5 8.0 23 29 Mexico 17.5 26.2 74 95 Nicaragua 8.4 6.2 35 22 Panama 17.5 19.3 74 69 Paraguay 7.0 14.1 29 51 Peru 10.4 13.0 44 47 Uruguay 19.3 27.9 81 100 Venezuela 23.9 35.8 100 129 Unweighted average 11.7 21.8 49 79 USA 100.0 100.0 Agriculture value-added: Expressed in local currency at 1970 constant prices. Reports the output of the sector net of intermediate inputs and includes the cultivation of crops, livestock production, hunting, forestry and fishing. The depreciation of reproducible assets and depletion/degradation of natural resources are not deducted; expressed in million constant local currency units at 1970 prices. The series was extended to 2000 by applying the real rate of growth of the series at different base years to the series in 1970 prices. As in the case of GDP, the growth rates of the most recently available series have been used, but have been applied maintaining the 1970 base year fixed. Manufacturing value-added: Expressed in local currency units at 1970 constant prices. Reports the output of the sector net of intermediate inputs; the depreciation of reproducible assets or depletion/degradation of natural resources are not deducted. The series was extended to 2000 by applying the real rate of growth of the series at different base years to the series in 1970 prices. Depending on data availability, for some countries and time periods, figures may include mining and quarrying; users are advised to consult the country notes for data coverage. As in the case of GDP, the growth rates of the most recently available series have been used, but have been applied maintaining the 1970 base year fixed. Gross Domestic Fixed Investment: Also known as gross fixed capital formation, figures include land improvements, plant, machinery, and equipment purchases, and the construction of infrastructure, (e.g., roads, railways, schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings); expressed as a percent of Gross Domestic Product. Gross National Savings: Gross domestic savings plus net income and net current transfers from abroad; expressed as a percent of GDP. By convention, this series is calculated as a residual, as there is no direct source of data. Foreign Direct Investment: Net inflows (from balance of payments), includes equity capital, reinvested earnings, and other capital associated with inter-company transactions between affiliated enterprises but excludes capital flows for exceptional financing, (e.g., debt-for-equity swaps); expressed in million US dollars. For earlier years, data are for US FDI only; users are advised to consult the country notes for data coverage. External Debt: Comprises total debt, (including the sum of public, publicly guaranteed, and private non-guaranteed long-term external debt, use of IMF credit, and short-term debt), owed to non-residents repayable in foreign currency, goods, or services; expressed in million US dollars. Short-term external debt includes all debt having an original maturity of one year or less and interest in arrears on long-term debt. Users are advised the consult the country notes for data coverage. Nominal Exchange Rate in 1970 Local Currency Units: 1970 Local currency units per US dollar. This series ignores changes currency units and is therefore compatible with the GDP at current prices series and the implicit GDP deflator. Unless otherwise noted, the figures are market prices and refer to the yearly average (see notes for each country in each table of results). [END] --- [1] Url: https://web.archive.org/web/20190314191809/http://moxlad-staging.herokuapp.com:80/home/en Published and (C) by Our World in Data Content appears here under this condition or license: Creative Commons BY. via Magical.Fish Gopher News Feeds: gopher://magical.fish/1/feeds/news/ourworldindata/