Industrial sectors
The survey of the National economy is measured in both current and constant prices. In the survey of the National economy the producing activity e.g., production value, use of materials, wages for the workers, and profit for owners of the capital equipment is classified in industrial sectors such as agriculture, sea farming and public administration.
An institutional entity, e.g., a private company or a public institution has in most cases one type of production, but in some cases the public institutions have more than one type of production. In that case the public institution is divided in smaller entities with uniform production types, if possible.
The Faroese classification of industrial sectors FV2008 is based on the international classification NACE Rev. 2, yet with some modifications. There are 624 industrial sectors, who are grouped in different degrees. Overall, the industrial sectors are classified in three main groups.
The primary sector includes fishery, sea farming and other primary sectors.
The secondary sector includes food production, other production, water supply and construction.
The tertiary sector includes retailing and wholesale, hotel and restaurants, transport and storage, information and communication, bank and insurance, real estate and accommodation, leasing and renting, public administration, education, health services, social systems and other services.
Definitions:
Current prices are the market prices that are available in the given period.
Gross domestic product in current prices is a measurement for the value created in a certain period.
Gross value added is GDP in basic prices and is measured in each industry and sector as the production value minus intermediate consumption at purchaser prices. As for the national economy, GVA can also be measured as nominal GDP minus net product tax.
Constant prices are a measurement for the value that is measured in terms of a base year. Constant prices are used to show the change in numbers rather than prices.
The production value is the value of goods and services in market production, production to own use and other non-market production. Producing is not the same as selling. For example, the production value of a firm not the same amount as the amount the firm has sold, but instead the amount sold minus the cost of the items sold, also known as gross proceeds. In public administration and other non-market production is the production value measured as the cost of production, which is the consumption of production + wages + production taxes + depreciation.
Real gross value added is annual change in the gross value added measured in constant prices.
Chained values are a settlement? of quantity where the weight basis is changing and is based on the prices the previous year. Each year the new base year is the previous year, but the reference year is the same.
Growth contribution shows the contribution of the industrial sectors to the change in the total gross value added.
Value added is the production value in basic prices minus consumption in production in purchaser prices.
Survey of the National economy in constant prices is produced from 2010 chained prices.
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Table in Statbank