1. Joint Meeting of DMES and CMFB Task Forces Luxembourg, 27 April 2016
ECB-UNESTRICTED
Macroeconomic Statistics Division
External Statistics Division
Issues of Timing and Consistency of Coordinated Benchmark and Routine Revisions
Joint Meeting of DMES and CMFB Task Forces Luxembourg, 27 April 2016

2. Definition of concepts
Different sub-domains may currently follow different practices for organisational or methodological reasons:
National accounts
Main aggregates
SUT/IOT
Sector accounts
Non-financial accounts
Financial accounts
b.o.p./i.i.p.
Current & capital account
International Investment Position 2 2

3. Definition of concepts
Major revisions: may affect entire series
Coordinated Major Ad-Hoc:
Change in European methodology or legislation, aligned across countries
Coordinated Major Regular
Regular intervals, aligned across countries
Uncoordinated/National Major:
A revision deeper than a routine revision due to country-specific reasons, not aligned across countries.
Routine revisions: regular, at annual or infra-annual frequency, for a specified maximum series depth 3 3

4. Timing of revisions
Major revision usually with annual routine revision
If backdata released in steps: separate major revisions
“Annual major revisions”: allow gradual improvements – in practice still “packaging” of major changes – this makes it more similar to (extended) routine revision ?
Combination of lack of aligned routine revision and of aligned major revisions across domains may lead to inconsistencies and backdata differences lasting a long time/an entire cycle
Impact on European aggregates: Particularly obvious for all b.o.p./R.o.W. due to inconsistent cross-border flows 4 4

5. Issues in the alignment of revisions between domains
Need for alignment between domains:
align the timing of major revisions with the main annual revision. Most countries use 3rd quarter.
have a single point in the year to revise all domains nationally: to avoid lagging domains or even near permanent difference (as often for NA and BoP)
have the same backwards depth across domains 5 5

6. Issues in the alignment of revisions between domains
Need for alignment between countries:
Minimise asymmetries and inconsistencies
Need to monitor/steer data quality: checking “external consistency” requires one single point when all countries and domains are (most) consistent
Minimise the flow of revisions affecting EU statistics and uses:
The permanent revisions in European aggregates damage the perceived quality and reliability not only of European aggregates, but all uses of EU country data (MIP etc.) 6 6

7. Issues in the alignment of revisions between frequencies
Need for alignment across frequencies:
Practice of non-aligned revisions to quarterly/annual data:
Mostly an issue of delayed revisions of quarterly data
May concern annual routine revisions as well as major revisions
Users of only annual data not much affected
But very unfortunate of users quarterly data 7 7

8. Sub-domains with identical revision policies
Grouping of sub-domains:
Main aggregates often aligned with SUT/IOT ?
But SUT/IOT produced with delays, and not always subject to major revisions
Non-financial accounts aligned with main aggregates ?
Financial accounts often not aligned with non-financial accounts
B.o.p/i.i.p. revisions more aligned with financial accounts than with non-financial accounts/main aggregates 8 8

9. Issues for discusson Discuss the “six needs”:
Alignment between domains:
timing of major revisions & main annual revision
single point in the year to revise all domains nationally
same backwards depth across domains
Alignment across countries to :
to minimise asymmetries and inconsistencies
to enhance data quality at European level / aggregates
to manage flow of revisions in European statistics
(2) Discuss the alignment of revisions to Q and A data
(3) Discuss grouping of sub-domains with identical revision practices 9 9

11. Framework for major revisions
The national need for major revisions outside major ad-hoc or regular revisions is recognised although not formally in the proposal 11 11

12. Framework for quarterly routine revisions
The coherence should be ensured between the three releases of quarterly accounts. 12 12

13. Annual routine revisions13