bruttomunicipalprodukt

Bruttomunicipalprodukt (BMP) is a regional macroeconomic indicator that quantifies the total value added produced within the geographic boundaries of a municipality during a given period, usually one year. It serves as the municipal-level counterpart to GDP, offering a measure of local economic activity rather than national output.

BMP is derived by regionalizing national accounts data to municipalities. Approaches include distributing industry value added through location quotients, using input-output tables, or combining tax and enterprise data with business registers. Data sources may include corporate accounts, tax records, labor input, and administrative datasets. Because many municipalities are small or data-poor, estimates often involve modeling and assumptions.

The BMP is used for regional analysis, planning, benchmarking, and policy evaluation. It supports decisions on where to concentrate investment, how to assess regional growth, and how to compare municipalities’ economic performance.

Per-capita BMP indicates average economic output per resident and can be compared to GDP per capita. Summed across municipalities, BMP should approximate a share of national GDP, subject to methodological alignment and boundary consistency.

Limitations include comparability across countries being limited by differing regionalization methods and administrative borders. Small municipalities face higher uncertainty, and differences in tax rules and data coverage can distort comparisons. Moreover, BMP reflects production activity, not necessarily living standards or well-being.

The concept arises from regional statistics practices in Europe and other regions where subnational accounts are reported to support regional policy and planning.