1. Definition

The System of National Accounts (SNA) consists of a coherent, consistent and integrated set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. It provides a comprehensive accounting framework within which economic data can be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policy-making.   In practice the accounts are compiled for a succession of time periods, thus providing a continuing flow of information that is indispensable for the monitoring, analysis and evaluation of the performance of an economy over time.  The SNA provides information not only about economic activities, but also about the levels of an economy's productive assets and the wealth of its inhabitants at particular points of time and also includes links between an economy and the out side world.

The System of National Accounts (SNA) consists of a coherent, consistent and integrated set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. It provides a comprehensive accounting framework within which economic data can be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policy-making.   In practice the accounts are compiled for a succession of time periods, thus providing a continuing flow of information that is indispensable for the monitoring, analysis and evaluation of the performance of an economy over time.  The SNA provides information not only about economic activities, but also about the levels of an economy's productive assets and the wealth of its inhabitants at particular points of time and also includes links between an economy and the out side world.  

 2. National Accounts, Sources and Methods

National Accounts (NA) are compiled following the concepts and conventions of the United Nations Systems of National Accounts 1993 (SNA93). According to the SNAS93, there are three standard approaches for compiling NA. Namely:

i.The Out Put/Production approach

      ii.The Income approach

     iii.The Expenditure approach Principally all these approaches arrive

          at the same results. The Out Put/ Production approach measures the

         GDP by subtracting intermediate consumption from the total out put

         of an economy.  In principle it is considered that:

 Out Put = Intermediate Consumption + Value Added (GDP) therefore

Value Added (GDP) = Out Put - Intermediate Consumption   

The Income approach which is very similar to the production approach only that while the production approach measures GDP from top to bottom the Income approach measures GDP from bottom to top measuring compensation on factors of production (employees and gross operating surpluses) at every level of production. The expenditure approach on the other hand measures GDP by aggregating final consumption expenditure incurred by households, government and NGO’s, capital formation and exports less imports of goods and services.

3. Rwanda’s National Accounts

Due to technical reasons that include huge informal and non-monetary sectors (about 65% of the economy in 2006) and data availability among others, in Rwanda National Accounts are only compiled using the Out Put/Production approach as explained above.  On the other hand as far as the expenditure approach is concerned, it is only the final household expenditure that can not be measured on a yearly basis. Hence in this case it can then be calculated by subtracting as a balancing item from the out put approach. Therefore finally GDP estimates of both the production and expenditure approaches are computed annually in Rwanda. National Accounts are estimated by economic activities which are classified according the International Standard Industrial Classification of all economic activities (ISIC). This is used along side the United Nations Central Product Classification (CPC) that is linked to the Harmonized System (HS) used for classifying international trade. All these are adapted to Rwanda’s development level keeping their framework as much as possible. The Industries include:A.Agriculturea.- Food cropb.- Export cropc.- Livestockd.- Forestrye.- FisheriesB.- Industrya.- Mining and quarryingb.- Manufacturingc.- Electricity, gas and waterd.- ConstructionC.- Servicesa.- Whole sale and retail tradeb.- Hotels and restaurants.