MONGOLIA: IMPLEMENTATION OF THE 2008 SNA 1 B.BADAMTSETSEG Director of Macro Economic and Statistical Department, NSO Meeting the expert group on National accounts, Geneva 6-9 May, 2014

CONTENTS 2 I.THE 2008 SNA IMPLEMENTATION PLAN II.CURRENT IMPLEMENTATION STATUS OF 2008 SNA III.CONCLUSION IV.FUTURE ACTIVITIES

3 NSDS ( ) approved by Parliament NSDS ( ) approved by Parliament Action plan ( ) to be approved by Statistical Consul Action plan ( ) to be approved by Statistical Consul Annual work plan (yearly basis) approved by NSO chairman Annual work plan (yearly basis) approved by NSO chairman I. THE 2008 SNA IMPLEMENTATION PLAN The 2008 SNA implementation plan was the integral part of the NSDS Next round of NSDS : on going process

4 I. THE 2008 SNA IMPLEMENTATION PLAN The 2008 SNA implementation plan was the integral part of the Monstat project. Component A: Improving policy, regulatory, and institutional framework and the organizational structure of the statistical system; Component B: Strengthening the statistical infrastructure; Component C: Upgrading statistical data outputs; Component D: Preparation of an IT-Plan; Monstat Project (World Bank)

II.CURRENT IMPLEMENTATION STATUS OF 2008 SNA  Institutional structure has been set up for implementation of 2008 SNA Inter-agency working group: Composition: NSO Bank of Mongolia Ministry of Finance General Custom Administration Office Objectives of the working group: to study changes of SNA 1993 to ensure integration and harmony between 2008 SNA, BPM6 and GFS to implement 2008 SNA recommendations to create necessary data sources. 5

II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA  Statistical infrastructure was improved Systematic revision of data questionnaires and creation of data sources for compilation of annual SUT. Technological solution enabling automatic updating of BR database based on GASR. Introduction of sample survey to economic statistics and start of seasonally adjusted estimations.  Latest versions of classifications were revised and applied: ISIC-4.0 CPC-2.0 COICOP Asset classification 6

II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA  Methodological foundation was set up for 2008 SNA Methodologies on: GDP and GNI estimation Quarterly GDP estimation Sector accounts compilation SUT and IOT compilation Balance of payment methodology revised based on BPM6 Price statistics was improved Calculation of Regional CPI 2010 base year Industrial production Index Calculation of 2010 base year Construction Cost Index 7

II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA  Related estimations and surveys have been carried out. Compilation of 2010 SUT, IOT First time, the results of SUT and IOT were disseminated to users in details; Some main indicators were compiled according to SNA 2008 recommendations; Non observed economy survey – 2010 First time all (N1-N7) fields of NOE were covered. Base data of informal sector were created. Results of NOE were integrated to the annual GDP estimation. The internationally comparative data were collected. FISIM was estimated using new methodology 8

II.CURRENT IMPLEMENTATION STATUS OF 2008 SNA Adapted Global Assessment (UNECE, Eurostat, EFTA, ESCAP) in 2013: The first country in the Asia-Pacific region. Main objectives of AGA are to evaluate NSS as a whole, assess official statistics development and provide insight and recommendations for improving the entire system, operations, statistical activities and related capacities. Recommendation: Recommendations were provided as a future direction to further implement of 2008 SNA. Recommendations were given to prioritize the 2008 SNA changes and start to implement more important issues. 9

10 Basic indicators of GDP Level 1 GNI and other primary indicators Level 2 Institutional sector accounts (first step: for all institutional sectors production accounts, current, capital and financial account) Level 3 Institutional sector accounts (intermediate step 1: for all institutional sectors current accounts and capital account) Level 4 Institutional sector accounts (intermediate step 2: for all institutional sectors financial accounts) Level 5 Other changes of volume accounts and balance sheet Level 6 Scope of the implementation of the SNA “Milestone” II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

11 CHANGESIMPLEMENTATION 1Research and development Now: R&D falls into the fixed asset classification. Future: Firstly, to determine whether R&D has return or not. If it has return then it assumed that a statistical unit and output will be estimated by a single unit. 2 Calculation of FISIM Now: FISIM is distributed to IC and final consumption in the domestic production framework. Future: FISIM will be distributed to export and import. 3Output of Central bank Now: We use cost approach by using the formula: output = IC+ compensation + CFC Future: Identify Central Bank services in 3 groups and estimate output 4 Output of non-life insurance services Now: Output is calculated by using the following formula: output = insurance premium -insurance claim + other income Future: NSO will choose a suitable one of 3 approaches for estimating non life-insurance output. III. CONCLUSION 1. The changes to reflect GDP estimation

12 CHANGESIMPLEMENTATION 5 Valuation of output for own final use by households Now: In progress. From the Agr. census result we got more data sources of output for own final use by household of agriculture. Future: Other economic activities will be estimated. 6Non observed economy Now: Completed. 7Measurement of storage Now: In progress. Future: Separate estimation will be made for storage activity. 8Weapons system Now: Weapons system is classified in fixed asset according to the asset classification, hence it is included to the GFCF in GDP by expenditure approach. Future: Estimation will be improved. 9 Consumption of fixed capital Now: Deprecation rate is used for estimation. Future: We will introduce PIM method in our GDP estimation. III. CONCLUSION 1. The changes to reflect GDP estimation (continuation)

13 CHANGESIMPLEMENTATION 1Institutional units and sectors Now: Business register has been expanded by statistical unit based on the Establishment Census. Future: Institutional sector’s classification will be revised and approved. 2 Refinement of the treatment and definition of financial instruments and assets Now: It is reflected in the institutional sector accounts methodology. Asset classification was revised and approved. Future: To study about financial instrument. Data source of financial accounts will be applied and financial account will be compiled in experimental base. 3 The scope of transactions concerning government and public sector Now: Set up inter-agency working group Future: Plan is to translate GFS 2014, develop national methodology, improve data sources. We will do list of public sector enterprises and classify them into appropriate sector. 4 Harmonization between concepts and classification of the SNA and BPM6 Now: “ВРM methodology” was revised and approved. Future: Collaborate with Central Bank to ensure data quality. III. CONCLUSION 2. Other changes

IV. FUTURE ACTIVITIES To formulate activities related to the SNA 2008 implementation and incorporate into NSDS ; To compile annual SUT experimentally based; To transfer/use Chain index; To improve Government Finance Statistics; and To compile financial accounts and other changes of volume accounts. 14

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