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EXPLANATION OF TERMINOLOGY, CONTENT AND
METHODOLOGY OF SOME STATISTICAL INDICATORS
ON INDUSTRY, INVESTMENT AND CONSTRUCTION

INDUSTRY

Index of Industrial Production (IIP) is an indicator that evaluates
the growth rate of industrial production every month, quarter and year. The
index is calculated by the quantity of production, therefore it is also called
“the index of quantity of industrial production”. The IIP is an important
indicator quickly reflecting the situation of industrial production growth in
general and the growth rate of each commodity in particular; satisfying
information needs of State agencies, investors and other users.

IIP is calculated as the percentage of the quantity of industrial
production generated in the current and base periods.

The calculation of IIP begins with the calculation of production
index of commodity. From the production index of commodity, production
indexes of VSIC 4-digit classes, VSIC 2-digit divisions, VSIC 1-digit
sectors and the whole industry can be calculated and so can the IIP for a
certain province or the whole country.

Calculation process:

Step 1: Calculating production index of an item

Formula:

q
i  n1  100
qn
q n0
Where:

i qn: Production index of the item n (for example: electricity, coal,
fabric, cement, etc);
q n1: Quantity produced of item n in the reference period.

q n0: Quantity produced of item n in the base period.

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