Consumption
The following section describes household consumption. The consumer's options depend on both income and on price developments on the market for goods and services.
Private Consumption
When drawing up production-based national accounts for 2004, a new statement of the private consumption was made. The statement of the private consumption by category is shown in Figure 1. For comparison, a breakdown of the Danish consumption in 2004 is also shown.
In time the statement of the private consumption from 2004 will form the basis for new weights to calculate the consumer price index and the net price index.
The consumer price index and the net price index, as described in basis and limitations and income purchasing power, are calculated based on a statement of the private consumption from 1992.
Figure 1
Private consumption in Greenland (2004) and Denmark (2004)
Denmark
Sources: Statistics Greenland and Statistics Denmark
Individual Public Consumption
The total public consumption in Greenland is equivalent to almost half of the gross domestic product (GDP). In an international context, this is a high proportion. By comparison, the proportion in Denmark is about 25 per cent.
Public expenses in Greenland are funded by taxes and by block grants from Denmark.
A significant proportion of government spending is public services targeted directly at individuals. This is also referred to as individual public consumption. The breakdown of this consumption is shown in Figure 2.
Whether society favours individual public consumption or private consumption depends on the chosen model of society. When international comparisons are made, private consumption and individual public consumption must be added to give a true picture.
The rest of the public spending is called collective public consumption and consists of administrative services, defence, police, and the judicial system.
Figure 2
Individual Public Consumption 2007
Sources: Statistics Greenland and Statistics Denmark