1 Country presentation on Experience in Compiling GDP by Household Final Expenditure International Workshop on Measuring GDP by Final Demand Approach, Shenzhen, China, April 2011 Shenzhen, China, April 2011 Department of Statistics, Ministry of Planning and Investment Lao People’s Democratic Republic (Lao PDR)

2 Presentation Outline 1)Brief background on GDP by expenditure approach 2)Measuring the final consumption of household 3)Problem and challenges of measuring the final consumption of household 4)Plan for improvement

3 1) Brief background on GDP by expenditure compilation  Periodicity GDP by expenditure approach is estimated in every five-year, as the Lao Expenditure and Consumption Survey (LECS) conducted interval 5 year, started from 1992/1993 and 2007/2008  Data sources 1.Government Financial Statistics, Ministry of Finance on annual basis 2.LECS (1992/ /2008) 5 year interval 3.Establishment survey on annual basis ( ), Economic Census (2006) 4.Other administrative report on annual basis  Data collection method 1.The consumption and expenditure LECS collected from Household base on daily method 2.Others expenditure item used the recall method

4 2) Measuring the final consumption of household  Final consumption of households is estimated base on COICOP on 7 digits and 12 Groups 01 - Food and non-alcoholic beverages 02 - Alcoholic beverages, tobacco and narcotics 03 - Clothing and footwear 04 - Housing, water, electricity, gas and other fuels 05 - Furnishings, household equipment and routine household maintenance 06 - Health 07 - Transport 08 - Communication 09 - Recreation and culture 10 - Education 11 - Restaurants and hotels 12 - Miscellaneous goods and services

5 2) Measuring the final consumption of household (Cont)  Final consumption of households Households Final consumption by sources = + Production for own consumption + Expenditure + Bartered + Received in kind (Production for consumption, Expenditure, Bartered and Received in kind estimated from daily method recorded; the durable goods of household expenditure estimated from recall method from household module )

6 3) Problem and challenges of measuring the final consumption of household 1.Insufficient data and data sources for household compilation on annual basis 2.Staff shortage and lack of competent, capacity for SNA concept compilation, data analysis and integrity (Administrative data) and data computation 3.Only CPI is available, PPI, WPI not available

7 4) Plan for improvement Under the Statistics Law and Strategy for the Development of National Statistical System Improve the organization from division upgrade to department under Lao Statistics Bureau 2.Formulate a working program for the economic statistics data development to serve the needs of national account compilation according to the 1993 SNA and 2008 SNA 3.Study and improve data collection system as well as next LECS 2011/ Staff recruitment and enhance staff capacity building by different means 5.Improve the coordination between DOS and line ministries 6.Develop compilation method to support to estimate the annual household expenditure as well as the annual GDP expenditure approach

8