Eleventh Meeting of the Advisory Expert Group on National Accounts Working Group in the ECLAC region on the Harmonization between Balance of Payments and National Accounts Statistics Eleventh Meeting of the Advisory Expert Group on National Accounts New York, 5-7 December 2017 Lourdes Erro* lerro@bcu.gub.uy Manager of Economic Statistics Area Central Bank of Uruguay * Opinions expressed here are those of the author and do not commit the Central Bank of Uruguay

Presentation Outline Motivation Working Group on the Harmonization of SNA and BOP Activities carried out so far and planned activities Survey: main results Questions to the AEG

1. Motivation The underlying methodology and concepts for the national accounts (2008 SNA) and the balance of payments (BPM6) are consistent with each another. But: large differences remain in practice The Annual National Accounts Seminar for Latin America and the Caribbean, organized by ECLAC, 8-10 November 2016, Santiago, Chile, discussed the importance of the harmonization in practice. An initial evaluation of BoP and NA data showed that there are considerable inconsistencies in the region Countries expressed interest in further working to better understand the reasons for the inconsistencies and to improve these statistics

1. Motivation … Note: prepared and presented during the Workshop on the harmonization of BoP and SNA, Brazilia, June 2017

2. Working Group on the Harmonization BoP and NA MAIN OBJECTIVE: Address practical aspects of the adoption of SNA 2008 and BPM6 and arrive to practical recommendations for the harmonization of the BoP and SNA data. Specific objectives: Make a diagnosis based on a survey in the region Detect causes of non harmonization, specially in selected areas Propose ways to improve current practices Produce a document as a practical guidance for harmonization of the BoP and SNA data (Terms of Reference in Annex 1)

2. Working Group on the Harmonization BoP and NA … Participants and accountability Colaboration from other Organisms Brasil (BP/NA) Colombia (BP/NA) Costa Rica (BP/NA) Annual Seminar on National Accounts (ECLAC) BoP-SNA_WG Nicaragua (BP/NA) Uruguay (BP/NA) COORDINATION AEG Technical Secretary: ECLAC Venezuela (BP/NA)

2. Working Group on the Harmonization BoP and NA… PLAN OF ACTIVITIES Workshop (training and organization) 2nd. Report 1st. Report Practical Guide of Harmonization (draft) 2017 2018 Jun Dic WORK IN 4 SUBGROUPS Survey and Diagnosis (Plan of Activities in Annex 2)

3. Activities carried out so far and planned activities WORKSHOP on the Harmonization of BoP and SNA data (27-29 June 2017, Brazilia, Brazil) organized by ECLAC and UNSD with the participation of Eurostat and IMF Countries were trained on the integration of BoP and SNA Direction for further work was provided: Definition of the content of a Survey for diagnosis Setting up of 4 subgroups to work in 4 selected areas: General topics Goods and Services FISIM FDI A collaborative work platform was created by ECLAC: https://connections.unite.un.org/communities/service/html/communitystar t?communityUuid=3174e038-17ea-4d35-91b1-0bdd4e1c807d 

3. Activities carried out so far and planned activities… General topics of harmonization Work structure for special areas Methodological reference: flows in SNA and BoP to be consistent changes introduced in both manuals Statistical Base: business registers scope of statistical units statistical sources classifications and data treatment Publication characteristics: publication formats timetables revision policy Mechanisms supporting harmonization: institutional framework strategic planning. define the problem summarize the theoretical treatment according to reference frameworks describe required adjustments of the basic statistics, scope and coverage, and reconciling processes to be carried out; present practical examples of good country practices

3. Activities carried out so far … THE SURVEY 1) Manuals used as reference

3. Activities carried out so far … THE SURVEY 2) Publication characteristics preannounced calendars: 12 comprehensive revisions warned in advance to users: 10 discrepancies between BP and RoW explained to users: 2

3. Activities carried out so far … THE SURVEY 3) Statistical sources and treatment of data (examples)

3. Activities carried out so far … THE SURVEY 8 countries make adjustments for smuggling activities and non observed economy in RoW estimations only 3 countries take those figures in BoP statistics 8 countries carry out data conciliation in the framework of SUT in RoW estimations only 2 countries include these amendments in BoP statistics

3. Activities carried out so far … THE SURVEY 4) Main sources of discrepancies:

4. Questions to the AEG Does the AEG agree that a preparation of a practical Guide on the Harmonization of BoP and SNA data would be useful? Does the AEG suggest additional considerations to be taken into account?