Institution

Statistics South Africa

Year

2011

Level

Basic

Abstract

This paper provides an overview on how the non-observed economy is defined and the current status of these estimates in the national accounts statistics of South Africa. It is essential that Gross Domestic Product (GDP) estimates be calculated according to international standards and guidelines as prescribed in the System of National Accounts (SNA). Exhaustive estimates of GDP are of importance to measure the economic performance of an economy. Failure to achieve a comprehensive coverage of all economic activities, results in biased growth rates, misleading information on the level of activity as well as the structural changes in the economy. These shortcomings create a distorted picture of the economy and can lead to a problem for users of the information.