How it all adds up
An explanation that you don’t find in Grade 10 texts is how all the national accounts items add up. This is just an additional bit of insight:
| Final consumption expenditure by households | C |
| + Gross fixed capital formation | I |
| + Final consumption expenditure by general government | G |
| = Gross domestic expenditure | C + I + G |
| + Payments of exports of goods and services | X |
| – Payments for imports of goods and services | Z |
| = Gross domestic product (at market prices) | GDP = C + I + G + X – Z |
| + Factor receipts (wages, interest, profits) earned by SA permanent residents abroad | + fatcor receipts |
| – Factor payments (wages, interest, profits) earned by residents of other countries in SA | – factor payments |
| = Gross national income | GNI = C + I + G + X – Z + factor receipts – factor payments |