Pacific island small states - Adjusted net national income (current US$)

The latest value for Adjusted net national income (current US$) in Pacific island small states was 9,231,439,000 as of 2019. Over the past 39 years, the value for this indicator has fluctuated between 9,331,019,000 in 2018 and 1,754,083,000 in 1983.

Definition: Adjusted net national income is GNI minus consumption of fixed capital and natural resources depletion.

Source: World Bank staff estimates based on sources and methods described in "The Changing Wealth of Nations 2018: Building a Sustainable Future" (Lange et al 2018).

See also:

Year Value
1980 1,860,201,000
1981 1,919,989,000
1982 1,822,711,000
1983 1,754,083,000
1984 1,828,232,000
1985 1,754,875,000
1986 1,918,247,000
1987 1,815,674,000
1988 1,838,105,000
1989 1,911,520,000
1990 2,131,786,000
1991 2,259,419,000
1992 2,478,024,000
1993 2,639,524,000
1994 3,022,241,000
1995 3,322,614,000
1996 3,598,215,000
1997 3,549,828,000
1998 3,001,864,000
1999 3,326,262,000
2000 3,123,770,000
2001 3,039,859,000
2002 3,233,041,000
2003 3,798,196,000
2004 4,440,244,000
2005 4,934,154,000
2006 5,020,469,000
2007 5,639,336,000
2008 6,047,502,000
2009 5,433,262,000
2010 6,001,715,000
2011 6,843,530,000
2012 7,252,545,000
2013 7,828,071,000
2014 8,258,853,000
2015 8,005,257,000
2016 8,340,341,000
2017 8,831,902,000
2018 9,331,019,000
2019 9,231,439,000

Development Relevance: Adjusted net national income is particularly useful in monitoring low-income, resource-rich economies, like many countries in Sub-Saharan Africa, because such economies often see large natural resources depletion as well as substantial exports of resource rents to foreign mining companies. For recent years adjusted net national income gives a picture of economic growth that is strikingly different from the one provided by GDP. The key to increasing future consumption and thus the standard of living lies in increasing national wealth - including not only the traditional measures of capital (such as produced and human capital), but also natural capital. Natural capital comprises such assets as land, forests, and subsoil resources. All three types of capital are key to sustaining economic growth. By accounting for the consumption of fixed and natural capital depletion, adjusted net national income better measures the income available for consumption or for investment to increase a country's future consumption.

Limitations and Exceptions: Adjusted net national income differs from the adjustments made in the calculation of adjusted net savings, by not accounting for investments in human capital or the damages from pollution. Thus, adjusted net national income remains within the boundaries of the United Nations System of National Accounts (SNA). The SNA includes non-produced natural assets (such as land, mineral resources, and forests) within the asset boundary when they are under the effective control of institutional units. The calculation of adjusted net national income, which accounts for net forest, energy, and mineral depletion, as well as consumption of fixed capital, thus remains within the SNA boundaries. This point is critical because it allows for comparisons across GDP, GNI, and adjusted net national income; such comparisons reveal the impact of natural resource depletion, which is otherwise ignored by the popular economic indicators.

Statistical Concept and Methodology: Adjusted net national income complements gross national income (GNI) in assessing economic progress (Hamilton and Ley 2010) by providing a broader measure of national income that accounts for the depletion of natural resources. Adjusted net national income is calculated by subtracting from GNI a charge for the consumption of fixed capital (a calculation that yields net national income) and for the depletion of natural resources. The deduction for the depletion of natural resources, which covers net forest depletion, energy depletion, and mineral depletion, reflects the decline in asset values associated with the extraction and harvesting of natural resources. This is analogous to depreciation of fixed assets.

Aggregation method: Gap-filled total

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts