System of National Accounts Seminar on the implementation of the System of National Accounts 2008 for Caribbean countries Antigua, Antigua and Barbuda, 14-16 June 2010 Herman Smith UNSD/DESA

Introduction We have now the 2008 SNA as the international statistical standard to compile the national accounts. Many countries have currently not implemented the 1993 SNA. Many countries are not able to submit the minimum requirement data set (as defined by the UNSC) to the UNSD. Last year the 2008 SNA was approved by the UNSC. In the next few years countries will begin to implement the 2008 SNA. The UNSD has been using the timeliness of the conversion to the 1993 SNA from the previous version to try to gain insight into how quickly countries will be able to implement the SNA. In this presentation we will look at the implementation of the 1993 SNA by CARICOM countries. We at the UNSD are interested in working with the CARICOM to help achieve implementation of the 2008 SNA by all countries. A second assessment that the UNSD typically looks at the submission of the MRDS to the UNSD on a routine basis. The ability of a country to submit the MRDS provides insight into the state of their national accounts processes. If a country is able to complete all 7 tables of the MRDS then that country’s national accounts are believed to be well developed. The UNSD is also interested in working to try to increase the ability of national account offices and to help them develop their systems so that all countries can submit the MRDS. In this presentation, we will look at the state of the CARICOM countries with respect to these issues (as compared to the rest of the world). As we move throughout this conference it will be helpful to keep in mind in the current state of affairs as we move toward the future.

Outline Frequency of Reporting. Implementation of the 1993 SNA. Scope of national accounts statistics reported to the UNSD. We will look at 3 aspects of compliance with the UN-NAQ questionnaire. For all items we will look specifically at the countries of the CARICOM; comparisons of the CARICOM countries with all countries will also be presented for demonstration purposes. First, we will discuss the timeliness (or frequency) of reporting to the UN-NAQ. In this discussion we look at how often countries are reporting to UNSD (yearly versus less than yearly). Second, we will assess the implementation of the 1993 SNA for the countries of the CARICOM. Here we will discuss the time frame in which the 1993 SNA was implemented for the countries of the CARICOM. Lastly, we look at the scope of national accounts data reported to the UNSD; specifically, with respect to the tables of the minimum requirement data set and UN milestone level. These two assessments of scope have been defined by the UNSC as a part of the Report of the ISWGNA to the thirty-second session of the UNSC, document E/CN.3/2001/8 and as a part of the Report of the ISWGNA to the twenty-ninth session of the UNSC, document E/CN.3/1997/12, respectively.

Frequency of Reporting Figure 1: Frequency of Reporting Sixteen of the of the 20 CARICOM countries routinely report national accounts statistics to the UN. The most recent available data the UN has for Antigua and Barbuda is 1992. Overall, the reporting of SADC countries is high. However, many countries do not report every year (notice that only 55% replied to the 2007 NAQ and only 65% to the 2008). So far, only 30% (6 countries) have replied to the 2009 NAQ. It important to keep in mind throughout this presentation that all tables are based on data reported to the UNSD; some countries might have very well developed national accounts, but the numbers might not be reported to the UNSD.

Implementation of the 1993 SNA As of this year 8 of the 20 CARICOM countries have implemented the 1993 SNA (based on data received by UNSD). On the next slide we will look at a breakdown of which countries have implemented the 1993 SNA and discuss commonalities between these countries. - Based on the data sent to UNSD. - Counting with the 2009 NAQ submission, the number for CARICOM raises to 8 (40%)

Implementation of the 1993 SNA (Cont) Of the 20 CARICOM countries: 3 implemented the 1993 SNA prior to 2001. 5 implemented the 1993 SNA after 2001. 12 have not implemented the 1993 SNA (including Montserrat and Antigua and Barbuda which have not responded to the NAQ since 1993). There seems to be a fairly large time gap between the countries that were able to implement the 1993 SNA quickly as compared to the others.

Implementation of the 1993 SNA * Last data is assumed if latest available year is before 2001 – assumed as January of the next year

Scope of National Account Statistics The scope of national accounts statistics is based on indicators set by the UNSC. The UNSC defined a standard minimum requirement data set (MRDS) to be the tables required for meaningful policy decision making. The UNSC defined statistical implementation milestones. The scope of national accounts statistics is well defined in the contact of the UN national accounts section. The scope based on indicators set by the UNSC. The UNSC defined a standard minimum requirement data set (MRDS) to be the table required for meaningful policy decision making. The MRDS includes gross domestic product by expenditure and industry, at current and constant prices; output, value added and gross capital formation by industry; relations among product, income, saving and net lending/borrowing; and at least parts of the integrated economic accounts for the total economy and the rest of the world.The MRDS was defined in 2001 by the UNSC. We report on two milestone levels that were set by the Statistical Commission: milestone 1 is obtained when gross domestic product by expenditures in current or constant prices and gross national income are provided; and milestone 2 is obtained when least value added by industry, gross domestic product by expenditures in current or constant prices, and gross national income are provided.

Tables of the MRDS Based on data submitted to UNSD. As the above chart shows, we have table 1.1 (GDP by expenditure at current prices) and tables 2.1 and 2.2 (Value added by industry) for most CARICOM countries. However, table 2.3 (output by industry) submissions are low; and tables 1.2 (GDP by expenditure at constant prices) and 4.2 (Rest of the World Accounts) submissions are quite low. Based on data submitted to UNSD.

Scope of National Accounts Statistics Most of the CARICOM countries can meet the 1st and second milestone; however, only one fifth of the countries submit 6 or more tables. These countries are Bahamas, Belize, Bermuda and Trinidad and Tobago. Based on data submitted to UNSD.

Scope Some of the CARICOM countries have developed systems of national accounts. A little more than one third of the CARICOM countries are currently not providing national accounts data that meets milestone 2 as defined by the UNSC.

Review of NA pratise Only 7 countries replied to the UNSD National Accounts implementation questionnaire. In 6 of the 7 the statistical office is responsible for the NA. In 1 country the NSO, CB and Ministry of Economic Affairs/Planning share the responsibility. The scope and detail of the accounts are still limited – mainly annual GDP data 12

Review of NA practise ISIC mainly Rev 3 only one Rev 4 Administrative records and annual surveys are the main source of data from most countries. Impediments include: Staff resources Data sources Institutional resources. 13

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