B A N C O C E N T R A L D E C H I L E 1 Chilean experience regarding Trade in Services compilation and current developments Balance of Payments and External Debt Department WPTGS Meeting, October 2010

B A N C O C E N T R A L D E C H I L E 2 OUTLINE 1. General framework 2. Services compilation: main sources and method of calculation 3. Dissemination of data and revisions 4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 3 OUTLINE 1. General framework 2. Services compilation: main sources and methods of calculation 3. Dissemination of data and revisions 4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 4 General framework  Services in Chile are compiled following broadly BPM5 recommendations.  Include transactions between residents and non residents.  Detailed components.  BoP compilation: positive assessment.  IMF’s Report on the Observance of Standards and Codes (ROSC), September  OECD’s Statistics Directorate.

B A N C O C E N T R A L D E C H I L E 5 Components presented TRANSPORT (share in exports 2009, 55%)  Sea Transport  Passenger  Freight  Other  Air Transport  Passenger  Freight  Other  Other modes  Passenger  Freight  Other

B A N C O C E N T R A L D E C H I L E 6 Components presented TRAVEL (share in exports 2009, 18%)  Business  Personal OTHER (share in exports 2009, 27%)  Communications services  Insurance services  Financial services  Computer and information services  Royalties and license fees  Other business services  Personal, cultural and recreational services  Government services

B A N C O C E N T R A L D E C H I L E 7 ALADI countries: exports of goods and services, % of world trade Exports of goods Exports of services Source: ECLAC

B A N C O C E N T R A L D E C H I L E 8 Exports of services: LA and Asia dynamics Source: ECLAC

B A N C O C E N T R A L D E C H I L E 9 Latin American countries: exports of services as a share of GDP ( ) Source: ECLAC

B A N C O C E N T R A L D E C H I L E 10 Trend in Chile shows a deficit in Balance of Services …

B A N C O C E N T R A L D E C H I L E 11 Transport trend is more balanced…

B A N C O C E N T R A L D E C H I L E 12 Other Services group shows a higher deficit…

B A N C O C E N T R A L D E C H I L E 13 OUTLINE 1. General framework 2. Services compilation: main sources and methods of calculation 3. Dissemination of data and revisions 4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 14 Sources are broadly adequate to compile Services statistics  International Transaction Reporting System (ITRS), adapted for statistical purposes.  Public institutions.  Surveys.  The first calculations are often estimations, which are replaced later (usually next quarter), when data sources are available.

B A N C O C E N T R A L D E C H I L E 15 Transport: method of compilation  Freights, based on register sources:  ITRS information (third countries operation), completed with Customs Service registers.  Passengers:  Complete coverage based on ITRS, for air and sea modes.  Other modes of transport, estimation derived from Customs Service information.

B A N C O C E N T R A L D E C H I L E 16 Transport: method of compilation  Other Services:  Complete coverage based on ITRS, for air and sea modes. Form includes each type of auxiliary activity.  Other modes of transport, estimation derived from Customs service information.  First calculation obtained from estimations. ITRS information is received with lag of days.

B A N C O C E N T R A L D E C H I L E 17 Travel: method of compilation  National Tourism Bureau (SERNATUR). Quarterly survey of expenses and length of stay for inbound and outbound travelers. Three-month lag.  International Police. Cross-border passenger movement: number of travelers entering and leaving the country. One month lag, making possible preliminary estimation.

B A N C O C E N T R A L D E C H I L E 18 Other Services: method of compilation  ITRS forms; e.g. Insurance.  Benchmark surveys, complemented with regular estimations; e.g. Communication, Computer and Information, Business services.  Public institutions: Superintendency of Pensions, Superintendency of Banks, Internal Revenue Service; e.g. Financial services, Cultural and Recreational services.

B A N C O C E N T R A L D E C H I L E 19 OUTLINE 1. General framework 2. Services compilation: main sources and methods of calculation 3. Dissemination of data and revisions 4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 20 Dissemination of data  Services statistics are calculated and published with quarterly periodicity.  Releases: March 18, May 18, August 18 and November 18.  Accessibility:  Central Bank’s Monthly Bulletin  BoP Yearbook  Statistical Database

B A N C O C E N T R A L D E C H I L E 21 Revision policy  Quarterly releases are revised in the year: May, August and November.  Further revisions are made for annual BoP releases: the first version for year t is disseminated in March year t+1; the Provisional version in March year t+2; and the Final Revised version March year t+3.  Exceptional revisions may be made if necessary.

B A N C O C E N T R A L D E C H I L E 22 OUTLINE 1. General framework 2. Services compilation: main sources and methods of calculation 3. Dissemination of data and revisions 4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 23 Geographical breakdown of services  First step achieved: Travel (published in March 2010 on Central Bank website).  Second step: Transport.  In progress, exploring sources and availability of information. Expecting to publish in  Includes freights, freights between third countries, passengers and main auxiliary services.

B A N C O C E N T R A L D E C H I L E 24 Improving Other Services measurement…  Lack of a well-defined benchmark population.  Enterprises from this group usually show high dynamics and dispersion, making difficult to identify all transactors.  Build a strong Business Register is a complex task.

B A N C O C E N T R A L D E C H I L E 25 Through the macroeconomic statistical infrastructure…  The structural surveys in the Other Services sector for National Accounts may improve the availability of data.  That means to take advantage from National Statistics Office experience: e.g. business register consistency; forms.  Identifying export transactors, including country of destination.  Methodological consistency with National Accounts statistics.

B A N C O C E N T R A L D E C H I L E 26 Through the macroeconomic statistical infrastructure…  Agreement subscribed with National Statistics Office, in order to implement a specific module for export transactors in last quarter  Preliminary internal results in 2011.

B A N C O C E N T R A L D E C H I L E 27 Implementation of BPM6: exploring most important changes  Fees for processing goods, to be included in services.  Repairs on goods, to be classified as services.  Financial intermediation services indirectly measured (FISIM):  Margin between interest payable or receivable and the reference rate (pure interest) on loans and deposits.  Pure interest included in primary income.

B A N C O C E N T R A L D E C H I L E 28 Chilean experience regarding Trade in Services compilation and current developments