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The information in the table below shows the national accounts figures for South Africa between 2015 and 2016
The information in the table below shows the national accounts figures for South Africa between 2015 and 2016. Use the information to answer the questions that follow:
1.1. Calculate gross domestic product (GDP) for 2015 and 2016 ?
1.2Calculate the economic growth rate between 2015 and 2016
1.3Calculate the net exports for the year 2015 and comment on the effect of this figure on economic growth in South Africa.
1.4Calculate net domestic product for the year 2016.
1.5Calculate net national product for the year 2016.
|
Component |
2015 (R millions) |
2016 (R millions) |
|
Final consumption expenditure by households |
1 853 657 |
1 864 436 |
|
Final consumption expenditure by general government |
614 957 |
628 434 |
|
Gross capital formation |
655 457 |
602 458 |
|
Exports of goods and services |
909 345 |
912 546 |
|
Imports of goods and services |
966 025 |
928 730 |
|
Primary income from the rest of the world |
98 016 |
87 773 |
|
Primary income to the rest of the world |
198 382 |
208 243 |
|
Consumption of fixed capital |
433 604 |
445 724 |
Expert Solution
1.1
GDP = C + I + G + X - M
GDP, 2015 = 1853657 + 655457 + 614957 + 909345 - 966025 = 3067391
GDP, 2016 = 1964436 + 602458 + 628434 + 912546 - 928730 = 3179144
1.2
Growth rate = % change in GDP = (3179144 / 3067391) - 1 = 1.0364 - 1 = 0.0364 = 3.64%
1.3
NX = X - M = 909345 - 966025 = - 56680
Since net export is negative, this slows down economic growth rate.
1.4
NDP, 2016 = GDP - Consumption of fixed capital = 3179144 - 445724 = 2733420
1.5
NNP, 2016 = NDP + Primary income from the rest of the world - Primary income to the rest of the world
= 2733420 + 87773 - 208243 = 2612950
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