Definition: Production account
The production account shows the transactions relating to the production process proper. It is drawn up for institutional sectors and for industries. Its resources include output and its uses include intermediate consumption.
The production account can be used to obtain one of the most important balancing items in the system – value added, or the value generated by any unit engaged in a production activity – and a vital aggregate: gross domestic product. Value added is economically significant for both the institutional sectors and the industries.
The production account at the level of the total economy includes in resources, in addition to the output of goods and services, taxes less subsidies on products. It thus enables gross domestic product (at market prices) to be obtained as a balancing item.
Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996