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Regional economic accounts (reg_eco10)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: [DK1] Statistics Denmark

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Regional accounts describe the geographical dimension of production and income conditions as these are compiled in the national accounts using the production approach. The regional allocation aims at adding output and value added etc. to the region in which production takes place, mainly the residences of production or local kind-of-activity units.

Regional accounts contain information on gross value added, gross fixed capital formation and compensation of employees in current prices. Moreover, information on the number of employees and total employment in persons and hours worked are compiled. Additionally, the household sector's income at regional level is compiled. The regional allocation of the household income is based on the residence of the households and not where the income is earned. The household income contains information on gross operating surplus, compensation of employees, property income and primary income. The statistics also show how the distribution of social benefits, income taxes and contributions to social schemes (pension savings) are distributed geographically. The income is calculated both in absolute terms and in per capita.

31 October 2025

Denmark regional accounts are compiled according to concepts, definitions and principles of ESA2010.

Gross Value Added (GVA):

Gross value added at base prices. GVA is calculated for the individual business types as production at base prices minus intermediate consumption at purchaser's prices and is thus, also equal to the sum of other production taxes (net), compensation of employees, and gross operating surplus and mixed income. For society as a whole, gross value added can also be calculated as the gross domestic product at market prices minus net product taxes.

Current prices: Prices or price level that applies to goods and services in the current period. The opposite of current prices is fixed prices.

Resident unit: An entity is a resident of a country or a region if it is located within the economic territory of that country or region and conducts or intends to conduct economic activities and transactions to a significant extent for a period of at least one year.

Resident unit primary income: The income that resident entities receive through their direct participation in the production process and the income that the owner of a financial asset or natural capital receives in return for providing capital or natural capital to another institutional entity.

Economic area: The geographical area managed by a government within which persons, goods and services, and capital move freely. Includes duty-free zones, national airspace, territorial waters and the part of the continental shelf that lies within the international waters under the sovereignty of the country. Also includes territorial enclaves (e.g. Danish embassies and consulates abroad), deposits of oil, natural gas, etc. in international waters outside the country's continental shelf, which are utilized by resident entities.

Economic area outside regions: The part of an economic area which cannot be allocated to a single region. This includes national airspace, territorial waters, and the part of the continental shelf that lies within the international waters under the sovereignty of the country, territorial enclaves (e.g. Danish embassies and consulates abroad), deposits of oil, natural gas, etc. in international waters outside the country's continental shelf, which are utilized by resident entities.

For the compilation of output, intermediate consumption, taxes linked to production and subsidies, wages and salaries, employment, fixed capital formation and depreciation, the statistical unit is the local kind-of-activity unit.

For the compilation of distributive and financial transactions, which cannot be divided up unambiguously among the individual kind-of-activity units belonging to a decision making unit (enterprise), the unit is the larger institutional unit, which in most cases will be the same as the legal unit which is the enterprise.

All units generating Danish economic activity.

Denmark excluding Greenland and Faroe Islands.

The reference period for the economic flows in the regional accounts is equivalent to the national accounts, being the year in which the economic activity occurs. Information on employment is given as annual averages.

The accuracy of the regional accounts is generally linked to the accuracy of the national accounts. Some parts of the national accounts can be calculated more accurately than others. For example, for the industrial area, quite accurate data are available. Other parts of the national accounts are based on calculations and estimates due to limited source data, including, for example, consumption of owner-occupied housing and undeclared work. Therefore, the accuracy is expected to be lower. The first versions for a given period are made before all the data for the period are available. Therefore, alternative sources are used to project the sources, e.g. indicators from the business cycle statistics. The preliminary versions of the national accounts will thus be less accurate than later versions.

In addition to the uncertainty associated with the national accounts in general, there are also uncertainties associated with the regional dimension. In some cases, regional information is not available, which is why it is necessary to use indicators to allocate the national totals.

  • Gross value added, gross fixed capital formation and compensation of employees are published in million DKK.
  • Per capita values are published in 1000 DKK.
  • Employment and average population are published in thousands of persons.
  • Hours worked are published in thousands of hours.

The regional figures for gross value added, employment, hours worked, compensation of employees, gross fixed capital formation and other taxes and subsidies on production are calculated on the national accounts' 117 aggregation level, and the calculation procedures vary from industry to industry. In some industries, the regional information can be used directly, while in other industries it is used as a distribution key.

Gross value added and gross fixed capital formation

The most important source for the calculation of gross value added and gross fixed capital formation is the Accounting statistics for the Non-agricultural Private sector, which covers the industries manufacturinginformation and communicationreal estate and rental of commercial properties as well as parts of the industries business services and trade and transport etc. and manufacture and distribution of gas. Accounting statistics are collected mainly at company level. In cases where a company has more than one local unit, a distribution of the company's accounting figures is made on the basis of information on the number of fulltime equivalents per local unit. The distribution between local units is described in more detail in Documentation of Statistics for Non-agricultural Private Sector. In addition to the accounting statistics, information on own-produced and purchased research and development from the statistics Business Enterprise Research and Development is used.

The aforementioned sources are not available for the first calculation of the regional accounts, which is compiled one year after the end of the reference period. Therefore, the distribution from the previous year is used. Industries engaged in non-market activities are primarily covered by a regionally distributed version of the General Government Finances Statistics. These are mainly the industries public administration, education and healthnon-market research and development (part of the industry other business services) and part of the industry arts, entertainment and other services. Generally, there is accounting information at local unit level in the central government accounts data and in the municipal accounts data. In the case of the regions, a distribution of the regions' accounting information between local units is made on the basis of the number of employed. The source is supplemented with accounting information for non-profit institutions serving households, which is regionalized the basis of the number of employed. The remaining part of the industry arts, entertainment and other services that are market producers are regionalized using wages and salary and employment data. The industry financial and insurance is regionalized using wages and salaries. The Economic Accounts of agriculture by region is the source for the calculation of the industry agriculture and horticulture. It is supplemented with various quantitative indicators from the Agricultural and Horticultural Census, which is used to distribute the regional figures to between provinces. Each of these indicators is weighted by the production value of the individual agricultural and horticultural products from the national accounts. The statistics Purchases and sales by enterprises are used as a source for the industry fishing. The calculation of gross value added in construction is based on quantitative indicators rather than accounting information, as larger construction sites are considered as local kind-of-activity units (workplaces), which does not always coincide with the address of the executing construction company. For *construction of new buildings, the gross value added is distributed on the basis of information on the number of completed square meters from the statistics Construction census. For the civil engineering, the gross value added is distributed on the basis of information on the geographical location of various civil engineering projects. Repair and maintenance of buildings is distributed with information about the building stock in square meters from the census of Buildings. Information on the number of traveling passengers and transported goods from the counts Railway transport and Aviation are used as the main source for the distribution of gross value added in the industries air transportpassenger rail transport, interurban and transport by suburban trains, buses and taxi operations etc. In the industries production and distribution of electricity and steam and hot water supply, figures for quantities of electricity and heat (including production onshore and offshore windmills) produced by the Danish Energy Agency are used as a source of distribution. The production at offshore windmills is allocated to the region "Outside regions". The industries extraction of oil and gas and mining support activities are allocated to the region "Outside regions".

GDP

GDP is calculated in the regional accounts only from the production side. The regional GDP is therefore calculated as the sum of the gross value added plus product taxes and minus product subsidies. Product taxes and subsidies are by convention distributed regionally proportional to gross value added.

Compensation of employees, employment and hours worked

The compilation of regional figures for compensation of employees, employment in persons and hours worked is based on the statistics Employment in Business, Register-based Labor Force Statistics and General Government Finance Statistics. In the industries constructionair transportextraction of oil and gas and mining support service activities, the same indicators are used as are used to distribute gross value added. Employment in Business contains information on compensation of employees and the number of employees in fulltime equivalents. This information is used as a source for compiling compensation of employees and hours worked for employees. Employment in persons is distributed on the basis of number of employed persons at the end of November from the Register-Based Labor Force Statistics. Hours worked for the self-employed are distributed according to the number of self-employed excl. leave. Regionalized figures of General Government Finances Statistics are used as a source of compensation of employees in public non-market industries.

Other taxes and subsidies on production

As there are no regional figures for other production taxes and subsidies, these are generally distributed proportionally to gross value added. However, regional information on COVID-19 aid packages for 2020 and 2021 will be collected and incorporated as these are classified as other subsidies on production.

Constant prices

Because no regional price indices are available the calculation of production, intermediate consumption and gross fixed capital formation in constant prices is done by applying the national price indices for each industry.

Household income

The regional distribution of household income is mainly based on the Income Statistics. As the national accounts use other sources for the household accounts at national level, this is a pure top-down method. The only exception is interest paid, where income statistics are also the source for the national calculations.

Population

The population figures are calculated as an average of the average quarterly population.

The statistics are mainly based on regional statements of the national accounts' sources.

The sources for calculating regional gross value added and gross fixed capital formation are mainly Accounting Statistics for Non-Agricultural Private Sector, General Government Finance Statistics. Economic Accounts for Agriculture by region, Business Enterprise Research and Development, Employment in Businesses and Purchases and sales by enterprises. In cases where the data is collected at company level, and where companies have more than one local unit, a distribution of the company's accounting figures is made on the basis of information on the number of full-time equivalents per local unit. In addition to the aforementioned sources, a number of quantitative indicators, which are closely related to the transactions to be allocated, are used. These are used as a regional distribution key in industries where direct regional information is not available or where there are special principles for regional allocation.

The sources for the compilation of regional figures for wages, employment and hours worked are Employment in Businesses and Register-Based Labor Force Statistics.

The source for the compilation of household incomes is Income Statistics.

Data are disseminated once a year.

Regional accounts are published annually. Data for the most recent year is published approximately 12 months after the end of the year in question.

Internationally there is a high degree of comparability with the national accounts of other countries because the Danish national accounts are compiled in accordance with the definitions in the European System of National Accounts ESA2010.

As in national accounts, efforts have been made to achieve a high degree of data comparability over time.

Danish regional data, for all reference period, are compiled according to the definitions of the ESA 2010 ensuring that the data remain comparable over time. Additionally revisions are performed on historical series in order to maintain consistency over time.