1 Conceptual linkages between the different systems of economic statistics Workshop on the Implementation of the 2008SNA, Kiev, 29 November – 2 December 2011 Kurt Wass EFTA Statistical Office Agenda item 4a

2 Conceptual linkages between the different systems of economic statistics Four main systems: 1.System of National Accounts, SNA 2008 (ESA 1995/2010) all economic activity in economy, including production, consumption, capital formation, income distribution, etc 2.Balance of Payments and International Investment Position, (BPM6 2009) interactions with rest of the world 3.Government Finance Statistics, GFSM 2001 (2012) economic activity and impact of government on economy, and sustainability of governments’ fiscal policies 4.Monetary and Financial Statistics, MFSM 2000 financial system, financial assets and liabilities

3 Conceptual linkages between the different systems of economic statistics Common features to be looked for: 1.Units 2.Institutional sectors 3.Residency 4.Stock, flows and their integration 5.Accounting rules 6.Valuation 7.Time of recording 8.Data Sources

4 Conceptual linkages between the different systems of economic statistics Production account Income accounts Capital transfers & Non-financial assets Financial assets & liabilities Other economic flows Closing balance sheet Opening balance sheet Current accounts Accumulation accounts GDP Saving Net lending/borrowing Distribution of income accounts Use of income account Primary distribution of income account Redistribution of income in kind account Secondary distribution of income account Generation of income account Balance sheet SNA

5 Conceptual linkages between the different systems of economic statistics Current Account Recording transactions in goods, services, income, and current transfers Capital Account Recording transactions in capital transfers and non-produced non-financial assets IIP Statement Opening balance sheets for financial assets & liabilities Financial Account Recording trans- actions in financial assets & liabilities IIP Statement Closing balance sheets for financial assets & liabilities Other changes in assets acct. (IIP) Reconciling Changes in IIP with transactions in Financial Acct. Net lending/borrowing Current account balance BoP/IIP

6 Revenue Expense Non-financial assets Net operating balance Net lending/borrowing Conceptual linkages between the different systems of economic statistics Financial assets Liabilities Net Worth Opening balance sheet Closing balance sheet Net Worth Stocks TransactionsOther flows Non-financial assets Non-financial assets Non-financial assets Net financial worth Change in net financial worth OEF Net financial worth Change in net worth OEF Financial assets Financial assets Financial assets Liabilities GFS

7 Net lending/borrowing Conceptual linkages between the different systems of economic statistics Financial assets Liabilities Opening balance sheet Closing balance sheet Stocks TransactionsOther flows Net financial worth Change in net financial worth OEF Net financial worth Financial assets Financial assets Financial assets Liabilities MFS

8 Conceptual linkages between the different systems of economic statistics Capital transfers & Non-financial assets Income accounts Production account Transactions GDP (value added) Financial assets & liabilities Saving Revenue account Expense account Financial assets & liabilities Non-financial assets Transactions Operating balance Net lending / borrowing Current account Capital account Financial assets & liabilities Current account balance Transactions Financial assets & liabilities Transactions export G&S import G&S income transactions current transfers capital transfers transactions in NPNFA GFS SNA ESA BoP MFS

9 Conceptual linkages between the different systems of economic statistics Sectorization (5 Institutional sectors) Time of Recording (accrual) Valuation (market prices) Structure of Accounts Double Entry Accounting Residency (center of economic interest and economic territory) 2001 GFS 2008 SNA 2009 BOP/IIP 2000 MFS X X X XX X X X*X X XX X X X XX X** X XX X X * The MFS focuses only on financial assets and liabilities ** The SNA uses quadruple entry accounting Similarities

10 Conceptual linkages between the different systems of economic statistics The macroeconomic systems are to a large extent harmonized, but in practice discrepancies can be observed. Do you observe discrepancies in your country, and what are the main reasons? For example, are the differences due to issues related to: coverage of units classifications of stocks/flows valuation time of recording, accrual adjustments etc. data sources other? Is there a problem due to lack of cooperation between compilers, that might be in different government agencies? What solutions do you see to improve the situation?