Conceptual linkages between the different parts of macroeconomic statistics

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

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Conceptual linkages between the different parts
of macroeconomic statistics

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

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Conceptual linkages between the different parts
of macroeconomic statistics

• Harmonization of macroeconomic statistics
• Residence
• Domestic economy and institutional sectors
• Stock and flows
• Accounting rules
• Valuation
• Boundary conditions
• Integrated accounts

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Conceptual linkages between the different parts
of macroeconomic statistics
Distribution of income accounts
Production account
Generation of income account
Primary distribution of income account
Current accounts
GDP
Secondary distribution of income account
Income accounts
Redistribution of income in kind account
Use of income account
Saving
Capital transfers Non-financial assets
Other economic flows
Closing balance sheet
Opening balance sheet
SNA
Net lending/borrowing
Accumulation accounts
Balance sheet
Financial assets liabilities
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Conceptual linkages between the different parts
of macroeconomic statistics
Current Account Recording transactions in goods,
services, income, and current transfers
Current account balance
Capital Account Recording transactions in capital
transfers and non-produced non-financial assets
BoP/IIP
Net lending/borrowing
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.
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Conceptual linkages between the different parts
of macroeconomic statistics
Revenue
Expense
Opening balance sheet
Closing balance sheet

Net operating balance
Change in net worth OEF
Net Worth
Net Worth
Non-financial assets
Non-financial assets
Non-financial assets
Non-financial assets
GFS
Change in net financial worth OEF
Net financial worth
Net financial worth
Net lending/borrowing
Financial assets
Financial assets
Financial assets
Financial assets
Liabilities
Liabilities
Liabilities
Liabilities
Stocks
Stocks
Transactions
Other flows
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Conceptual linkages between the different parts
of macroeconomic statistics
Opening balance sheet
Closing balance sheet

Change in net financial worth OEF
Net financial worth
Net financial worth
Net lending/borrowing
MFS
Financial assets
Financial assets
Financial assets
Financial assets
Liabilities
Liabilities
Liabilities
Liabilities
Stocks
Stocks
Transactions
Other flows
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Conceptual linkages between the different parts
of macroeconomic statistics
Transactions
Transactions
Transactions
export GS import GS income transactions current
transfers
Production account
Revenue account
Current account
GDP (value added)
Income accounts
Expense account
Current account balance
Operating balance
Saving
capital transfers transactions in NPNFA
Capital transfers Non-financial assets
Non-financial assets
Capital account
SNA ESA
GFS
BoP
MFS
Transactions
Financial assets liabilities
Financial assets liabilities
Financial assets liabilities
Financial assets liabilities
Net lending / borrowing
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Conceptual linkages between the different parts
of macroeconomic statistics
Similarities
The MFS focuses only on financial assets and
liabilities The SNA uses quadruple entry
accounting
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Conceptual linkages between the different parts
of macroeconomic statistics

• 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.