1. 1 The 5 th revision of the Classification of Broad Economic Categories (BEC) Ronald Jansen Chief of the Trade Statistics Branch United Nations Statistics Division / DESA E-mail: Jansen1@un.org orJansen1@un.org BigData@un.org

2. 2 Reference documents Note to the EG Report of the Global Consultation Draft Manual of BEC, 5 th revision, version June 2014 Expert Group on Classifications - 2015

3. 3 Content of Draft Manual I.Historical Background II.Reasons for revising the BEC III.The structure of the BEC, 5 th revision IV.The compilation of the BEC V.The analytical use of the BEC VI.The relationship to other classifications VII.The relationship to earlier versions Expert Group on Classifications - 2015

4. 4 History of the BEC I.Original BEC in 1971 (SITC, Rev.1) II.First revision 1976 (SITC, Rev.2) III.Second revision 1984 (SITC, Rev.3) IV.Third revision 1986 (corrigendum) V.Fourth revision 2002 (SITC, Rev.4) Expert Group on Classifications - 2015

5. 5 History of the BEC 1.At its thirteenth session, in 1965, the Statistical Commission: (a)recognizing the growing need for international trade statistics analyzed by broad economic categories, (b)recommended to distinguish (i)food, (ii)industrial supplies, (iii)capital equipment, (iv)consumer durables and (v)consumer non-durables, (c)recommended that each reporting country compiles those broad economic categories for the world and principal regions to supplement the data already compiled on the basis of the sections of the SITC. Expert Group on Classifications - 2015

6. 6 Expert Group on Classifications - 2013

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8. Friends of the Chair Group on Internationalization 8 (i)Re-defining BEC structure to better reflect current economic reality, (ii)Extending its scope, including services as well as goods, while giving extra attention to the definition of intermediate goods, (iii)Improving explanatory materials to help both compilers and users of data disseminated according to BEC, and (iv)Providing updated correspondence tables to link BEC with other statistical classifications. Mandate of TSG on BEC

9. 9 Reasons for revising 1.BEC is still relevant: referred to in more than 300 research papers since 2000 2.End-use categories should be better visible 3.Better guidance on dual-use classification 4.Updating of Economic categories 5.Services should be added (BEC – CPC) 6.Review of correspondence HS - BEC Expert Group on Classifications - 2015

10. 10 Dimensions of the 5 th revision 1.Broad Economic Categories 2.Goods and Services 3.End-use categories 4.Primary and Processed (intermediate consumption) 5.Generic and Specified (intermediate consumption) 6.Durable and non-durable (final consumption) Expert Group on Classifications - 2015

11. 11 Expert Group on Classifications - 2015 BEC – Broad Economic CategoriesTotalServicesGoods 1. Food, beverages, agriculture, catering105861052 2. Energy, Mining, basic metals, chemicals, plastics 92717910 3. Construction, housing, appliances, furniture, decoration and accommodation 1159271132 4. Textile, apparel, footwear, fashion, jewelry9895984 5. Transport equipment and services, and travel49559436 6. ICT, business and finance services, news, media, electronic entertainment 36989280 7. Health, sports, cultural activities, education, science, research, testing 48264418 8. Other000 54812675214

12. 12 Structure of 5 th revision of BEC Expert Group on Classifications - 2015 CodeMain economic categories Goods or Services End-Use category Primary versus processed Generic versus Specif. Non- Durable/ Durable 1.1.1.1.0.1Food and beveragesGoodsIntermediate consumptionPrimaryN/ANon-durable 1.1.1.1.0.2Food and beveragesGoodsIntermediate consumptionPrimaryN/ADurable 1.1.1.2.1.1Food and beveragesGoodsIntermediate consumptionProcessedGenericNon-durable 1.1.1.2.2.1Food and beveragesGoodsIntermediate consumptionProcessedCustomizedNon-durable 1.1.1.2.1.2Food and beveragesGoodsIntermediate consumptionProcessedGenericDurable 1.1.1.2.2.2Food and beveragesGoodsIntermediate consumptionProcessedCustomizedDurable 1.1.2.2.1.2Food and beveragesGoodsCapital formationProcessedGenericDurable 1.1.2.2.2.2Food and beveragesGoodsCapital formationProcessedCustomizedDurable 1.1.3.1.0.1Food and beveragesGoodsFinal consumptionPrimaryN/ANon-durable 1.1.3.1.0.2Food and beveragesGoodsFinal consumptionPrimaryN/ADurable 1.1.3.2.1.1Food and beveragesGoodsFinal consumptionProcessedGenericNon-durable 1.1.3.2.2.1Food and beveragesGoodsFinal consumptionProcessedCustomizedNon-durable 1.1.3.2.0.2Food and beveragesGoodsFinal consumptionProcessedGenericDurable 1.1.3.2.0.2Food and beveragesGoodsFinal consumptionProcessedCustomizedDurable 1.2.1.0.1.0Food and beveragesServicesIntermediate consumptionN/AGenericN/A 1.2.1.0.2.0Food and beveragesServicesIntermediate consumptionN/ACustomizedN/A

13. 13 Structure of 5 th revision of BEC Expert Group on Classifications - 2015 Code Goods or Services End-Use category Primary versus processed Generic versus Specif. Non- Durable/ Durable 1.1.1.1.0.1 GoodsIntermediate consumptionPrimaryN/ANon-durable 1.1.1.1.0.2 GoodsIntermediate consumptionPrimaryN/ADurable 1.1.1.2.1.1 GoodsIntermediate consumptionProcessedGenericNon-durable 1.1.1.2.2.1 GoodsIntermediate consumptionProcessedCustomizedNon-durable 1.1.1.2.1.2 GoodsIntermediate consumptionProcessedGenericDurable 1.1.1.2.2.2 GoodsIntermediate consumptionProcessedCustomizedDurable 1.1.2.2.1.2 GoodsCapital formationProcessedGenericDurable 1.1.2.2.2.2 GoodsCapital formationProcessedCustomizedDurable 1.1.3.1.0.1 GoodsFinal consumptionPrimaryN/ANon-durable 1.1.3.1.0.2 GoodsFinal consumptionPrimaryN/ADurable 1.1.3.2.1.1 GoodsFinal consumptionProcessedGenericNon-durable 1.1.3.2.2.1 GoodsFinal consumptionProcessedCustomizedNon-durable 1.1.3.2.0.2 GoodsFinal consumptionProcessedGenericDurable 1.1.3.2.0.2 GoodsFinal consumptionProcessedCustomizedDurable 1.2.1.0.1.0 ServicesIntermediate consumptionN/AGenericN/A 1.2.1.0.2.0 ServicesIntermediate consumptionN/ACustomizedN/A

14. 14 Global Consultation of draft BEC 1.July - September 2014 2.198 sent – 49 responses received 3.Overall positive 4.More clarification needed 5.Some specific comments for amendments Expert Group on Classifications - 2015

15. 15 Results of Global Consultation  Use different approach for choosing the top-level economic categories. Give exact definition of the categories in terms of HS and CPC.  What is the additional value of BEC over a breakdown of HS codes by ISIC classes and end-use (as input to the SUT)?  Clarify that the end-use dimension is fully independent from the economic categories in the revised BEC.  Explain how services data could be allocated, if services are collected with EBOPS and not with CPC classes.  Should the end-use category ‘gross fixed capital formation’ actually be ‘gross capital formation’?  The 4 th and 5 th dimensions should be properly defined Expert Group on Classifications - 2015

16. 16 Next Steps Expert Group on Classifications - 2015 Update the draft manual and circulate for comments to the TSG by end of May Receive comments of the TSG members by end of June Produce next version of the manual and circulate to TSG by end of August Receive final comments of TSG by mid-September Submit final draft to EG of international statistical classifications for approval by end-September

17. 17 Points for Discussion Expert Group on Classifications - 2015 1.Do you have comments on the outcome of the global consultation? 2.Do you agree with the proposed next steps ? 3.Should the BEC, rev.5 be brought to the Statistical Commission for endorsement?

18. 18 Thank you