1. 1 Conceptual linkages between the different parts of macroeconomic statistics 7th SPECA Project Working Group on Statistics 27 – 30 August 2012, Issyk-Kul, Kyrgyzstan Kurt Wass EFTA Statistical Office Agenda item 4a

2. 22 Conceptual linkages between the different parts of macroeconomic statistics The system of macroeconomic statistics is developed in different parts that are tailored to meet different needs in the macroeconomic policies concerning issues like; Balance of payment surplus or deficit Economic growth and activity level Income and distribution Fiscal position Money and credit measures However, the various parts of the system of macroeconomic statistics are to a large extent harmonized, and are based on the same basic concepts to provide decision makers information that is as far as possible mutually consistent.

3. 3 Four main parts of the system: 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 Conceptual linkages between the different parts of macroeconomic statistics

4. 4 Harmonization of macroeconomic statistics: 1.Residence 2.Domestic economy and institutional sectors 3.Stock and flows 4.Accounting rules 5.Valuation 6.Boundary conditions 7.Integrated accounts Conceptual linkages between the different parts of macroeconomic statistics

5. 5 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 Conceptual linkages between the different parts of macroeconomic statistics

6. 6 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 Conceptual linkages between the different parts of macroeconomic statistics

7. 7 Revenue Expense Non-financial assets Net operating balance Net lending/borrowing 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 Conceptual linkages between the different parts of macroeconomic statistics

8. 8 Net lending/borrowing 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 Conceptual linkages between the different parts of macroeconomic statistics

9. 9 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 Conceptual linkages between the different parts of macroeconomic statistics

10. 10 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 Conceptual linkages between the different parts of macroeconomic statistics

11. 11 The parts of the macroeconomic statistical system are to a large extent conceptually harmonized, but discrepancies are in observed in practice. Differences due to issues related to: data sources coverage of units classifications of stocks/flows valuation time of recording, accrual adjustments etc. lack of cooperation between producers, often in different government agencies Implementation of the revised manuals (SNA, BPM, GFS) should be used as an opportunity to harmonize and synchronize also in practice the major parts of macroeconomic statistics, hence providing a more mutually consistent economic picture enabling better policy decisions. Conceptual linkages between the different parts of macroeconomic statistics