Uses of National Income Statistics

Standard of living indicators

Reflect the individuals' welfare because it shows how much goods and services can be consumed by each individual in a country.

It can be measured by GDP per capita

Can be compared based on two different perspectives:

To compare the standard of living over time

To compare the standard of living across the country

Government planning and policies

The available statistic of national income cam guide the policymakers in planning for the future.

Government can take necessary measures to improve the current level of the economy or take the right corrective actions

Sectoral contributions

An economy is made up of various economic sector

Primary sector

Secondary sector

Tertiary sector

  • Agriculture
  • Forestry
  • Mining
  • Quarrying
  • Manufacturing
  • Construction
  • Electricity
  • Gas
  • Water

Policy makers can recognize which economic sector are more or less likely contributing to the NI

International comparisons

With NI statistic, we can compare the absolute size of in economy relative to another and how well off the average individual is in each country.

SITI MARYAM IRWANI BT MUHSEIN
2019476188
KBA2462A