Landsframleiðsla

Landsframleiðsla refers to the total market value of all final goods and services produced within a country's borders during a specified period, usually a year or a quarter. It is the Icelandic term for Gross Domestic Product (GDP). It can be measured at current prices (nominal GDP) or at constant prices (real GDP) to remove the effects of price changes.

GDP can be estimated by different approaches. The production approach sums value added by industries; the expenditure approach adds household consumption, gross capital formation, government spending, and net exports (exports minus imports); the income approach sums incomes earned in production. In Iceland, national accounts are compiled by Statistics Iceland (Hagstofa Íslands) in line with the System of National Accounts (SNA) guidelines and aligned with international standards.

The main components of landsframleiðsla are private consumption, investment, government expenditure, and net exports. The relative importance of these components varies over time, and in small open economies net exports can significantly influence GDP fluctuations.

Uses and limitations: Landsframleiðsla serves as a primary indicator of economic performance, policy planning, and international comparison. However, GDP does not measure distribution of income, non-market activities, environmental costs, or overall well-being. Real GDP growth is used to assess changes in production over time, removing price effects.

Data and history: Icelandic data come from Statistics Iceland, with comparable series provided by international bodies such as the IMF, World Bank, and OECD. The concept originated in the work of Simon Kuznets in the 1930s and has evolved under the System of National Accounts to facilitate cross-country comparisons.