Household final consumption expenditure is typically the largest component of final uses of GDP, representing in ge-neral around 60% of GDP. It is therefore an essential variable for economic analysis of demand. An additional concept, (household) actual individual consumption, also exists in the SNA. This concept allocates individual consumption expenditures of general go-vernment and NPISHs (those that directly benefit households) to households (the ultimate consumers of these expenditures), providing an important measure for cross-country comparisons, in particular for comparisons of well-being.

General government final consumption expenditure consists of expenditure incurred by government in its production of non-market final goods and services (except GFCF) and market goods and services provided as social transfers in kind. Total general government final consumption is perhaps of less political relevance, from a fiscal perspective, than general government expenditure (see Section 16) but its importance as a component of total GDP, and, so, as a reflection of its direct role as a “consumer” of final goods and services is significant.

Investment, or to be more precise, gross fixed capital formation is an essential variable in economic analyses, such as analyses of demand and productivity.

In today’s increasingly globalised world, exports and imports are key aggregates in the analysis of a country’s economic situation. Whenever an economy slows down or accelerates, all other economies are potentially affected.