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Adjusted savings, natural resources depletion (% of GNI)

Natural resource depletion is the sum of net forest depletion, energy depletion, and mineral depletion. Net forest depletion is unit resource rents times the excess of roundwood harvest over natural growth. Energy depletion is the ratio of the value of the stock of energy resources to the remaining reserve lifetime (capped at 25 years). It covers coal, crude oil, and natural gas. Mineral depletion is the ratio of the value of the stock of mineral resources to the remaining reserve lifetime (capped at 25 years). It covers tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. This indicator is expressed as a percentage of Gross National Income (GNI) which is the total income earned by all residents within an economic territory during an accounting period. It is equal to gross domestic product plus earned income receivable from abroad minus earned income payable abroad.

Staff estimates, World Bank (WB); The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium, World Bank (WB)

Economic Policy & Debt: National accounts: Adjusted savings & income

%

Annual

Weighted average

Methodology: National accounts are compiled in accordance with international standards: System of National Accounts, 2008 or 1993 versions. Specific information on how countries compile their national accounts can be found on the IMF website: https://dsbb.imf.org/ Statistical concept(s): The conceptual elements of the SNA (System of National Accounts) measure what takes place in the economy, between which agents, and for what purpose. At the heart of the SNA is the production of goods and services. These may be used for consumption in the period to which the accounts relate or may be accumulated for use in a later period. In simple terms, the amount of value added generated by production represents GDP. The income corresponding to GDP is distributed to the various agents or groups of agents as income and it is the process of distributing and redistributing income that allows one agent to consume the goods and services produced by another agent or to acquire goods and services for later consumption. The way in which the SNA captures this pattern of economic flows is to identify the activities concerned by recognizing the institutional units in the economy and by specifying the structure of accounts capturing the transactions relevant to one stage or another of the process by which goods and services are produced and ultimately consumed.

This indicator is related to the national accounts, which are critical for understanding and managing a country's economy. They provide a framework for the analysis of economic performance. National accounts are the basis for estimating the Gross Domestic Product (GDP) and Gross National Income (GNI), which are the most widely used indicator of economic performance. They are essential for government policymakers, providing the data needed to design and assess fiscal and monetary policies; and are also used by businesses and investors to assess the economic climate and make investment decisions. NAS enable comparison between economies, which is crucial for international trade, investment decisions, and economic competitiveness. More specifically, this indicator is related to national accounts aggregates. Gross Domestic Product (GDP), Gross National Income (GNI), and other aggregates provide a snapshot of the size and health of an economy by measuring the total economic activity within a country. They can thus be used by policymakers to design and implement economic policies, as they reflect the overall economic performance and can indicate the need for intervention in certain areas. Aggregates also allow for comparisons between different economies, which can be useful for trade negotiations, investment decisions, and economic benchmarking. By examining aggregates over time, economists and analysts can identify trends, cycles, and potential areas of concern within an economy, and investors can use national accounts aggregates to assess the potential risks and returns of investing in a particular country. Overall, national accounts aggregates are fundamental tools for economic analysis, policy formulation, and decision-making at both the national and international levels.

Net forest depletion is not the monetary value of deforestation. Roundwood and fuelwood production are different from deforestation, which represents a permanent change in land use and, thus, is not comparable. Areas logged out but intended for regeneration are not included in deforestation figures; rather, they are counted as producing timber depletion. Net forest depletion includes only timber values and does not include the loss of nontimber forest benefits and nonuse benefits. For both energy and mineral depletion, unit resource rent is calculated as (unit world price - average cost) / unit world price. Marginal cost should be used instead of average cost in order to calculate the true opportunity cost of extraction; however, marginal cost is difficult to compute and data are not readily available. Unit prices refer to international rather than local prices to reflect the social cost of natural resources depletion. This differs from methodologies of national accounts, which may use local prices to measure energy or mineral GDP. This difference explains eventual discrepancies in the values for energy or mineral depletion, verses energy or mineral GDP.

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