Value of household production: documentation of statistics

National accounts data concern all data produced and disseminated for an economy according to the definitions and guidelines of the European System of Accounts (ESA 2010).

National accounts provide data for the total economy, but may also include breakdowns of the total economy (into sectors, industries, products, regions, etc.). National accounts provide data for several domains: annual and quarterly national accounts (main aggregates), sector accounts, financial accounts, supply and use and input-output tables, regional accounts and government finance statistics.

One of the main aggregates of national accounts is the change rate of the price-adjusted gross domestic product (GDP), which indicates the economic development of a country of region and is also referred to as economic growth rate.

In Eurobase, countries' data are presented following the usual data structure.

In Statistics Finland’s database data are presented following the structure of the published statistics.

- quarterly national accounts

- annual national accounts (including annual sector accounts and capital stock data)

- quarterly sector accounts

- trend indicator of output (including flash GDP)

- financial accounts statistics (including annual non-financial balance sheets and pension entitlements in social insurance)

- supply and use and input-output tables

- government finance statistics: quarterly government revenue and expenditure; quarterly government financial accounts; EDP deficit and debt (annual); quarterly EDP debt; annual taxes and social contributions; annual government expenditure by function (COFOG)

- regional breakdowns of main national accounts variables and regional household accounts

- productivity statistics (KLEMS)

- balance of payments/international investment position (monthly, quarterly and annual)

- foreign direct investments (annual)

- satellite accounts: culture satellite; households’ production (annual)

The national accounts population of a country consists of all resident statistical units (institutional units or local KAUs). A unit is a resident unit of a country when it has a centre of predominant economic interest on the economic territory of that country, that is, when it engages for an extended period (one year or more) in economic activities on this territory.

National accounts are exhaustive. This means that all resident statistical units are covered.

Following the ESA 2010 guidelines, in national accounts two types of units and two corresponding ways of subdividing the economy are used: (a) institutional unit; (b) local kind-of-activity unit (local KAU). The first type is used for describing income, expenditure and financial flows as well as balance sheets. The second type of units is used for the description of production processes, for input-output analysis and for regional analysis.

An institutional unit is an economic entity characterised by decision-making autonomy in the exercise of its principal function. A resident unit is regarded as constituting an institutional unit in the economic territory where it has its centre of predominant economic interest if it has decision-making autonomy and either keeps a complete set of accounts, or is able to compile a complete set of accounts.

A local KAU groups all the parts of an institutional unit in its capacity as producer which are located in a single site or in closely located sites, and which contribute to the performance of an activity at the class level (four digits) of the NACE Rev. 2.

An institutional unit comprises one or more local KAUs; a local KAU belongs to one and only one institutional unit.

Finland uses 1) institutional unit used in sector accounts 2) establishment that corresponds LKAU; this unit is used in production accounts, investments and supply-and-use tables.

With the exception of some variables concerning population and labour that are usually expressed in number of persons, hours or jobs, the ESA 2010 system shows all flows and stocks in monetary terms: in euros or other national currency. Flows and stocks shall be measured according to their exchange value, i.e. the value at which flows and stocks are in fact, or could be, exchanged for cash. Market prices are, thus, the ESA's reference for valuation.

In addition to measurement in current (market) prices, some national accounts variables are also expressed in previous year's prices and chain-linked volumes, see section 3.9. Furthermore, it is possible to derive growth rates and indices, and various other measures '(e.g. percentages, per capita data, data expressed in purchasing power standards)' can be applied as well.

The concept of 'base period' is not applied in national accounts. Instead, for some national accounts variables the concepts of previous year prices and chain-linked volumes are applied, as stipulated in Commission Decision 98/715/EC. Expressing variables at the prices of the previous year allows the calculation of volume indices between the current time period and the previous year. After a reference period is chosen as a benchmark, volume indices can be chain-linked and then applied to variables at current prices of the benchmark year. This generates volume estimates for any period of observation.

The usual reference period to be used for presenting national accounts data is the calendar year for annual data and the quarter for quarterly data.

Two basic kinds of information are recorded: flows and stocks. Flows refer to actions and effects of events that take place within a given period of time (year or quarter), while stocks refer to positions at a point of time (usually the beginning or end of a year or quarter).

The reference area for national accounts is the total economy of a country. The total economy of a country can be broken down into regions. The NUTS classification provides a single, uniform breakdown of the economic territory of the Member States of the EU.

National accounts describe the total economy of a country. All units that have their centre of predominant economic interest in the economic territory of that country are covered.

In addition, several breakdowns of the total are described. Two of the most important breakdowns are the breakdown by institutional sector and the breakdown by NACE Rev. 2 activity. Exhaustiveness is required for each of the breakdown items.

Concerning the institutional sector breakdown, ESA 2010 distinguishes five mutually exclusive domestic institutional sectors: (a) non-financial corporations; (b) financial corporations; (c) general government; (d) households; (e) non-profit institutions serving households. The five sectors together make up the total domestic economy. Each sector is also divided into subsectors.

Regarding the activity breakdown, ESA 2010 applies NACE Rev.2. Activities can be broken down into several levels of detail, for example into 3, 10, 21, 38, 64 or 88 activities. At the 'highest' level a breakdown into 3 categories is defined: (a) agriculture, forestry and fishing; (b) mining and quarrying, manufacturing, electricity gas steam and air conditioning supply, water supply, sewerage, waste management and remediation activities, construction; (c) services.

 

Finland disseminates data using the classifications of the ESA 2010 transmission programme. There are typically more breakdowns in the national production systems. The most important additional breakdowns of the national publication of the data compared to the ESA transmission programme are:

- sector classification: S1314 breakdown by subsectors S13141 Employment pension schemes and S13149 Other social security funds (not transmitted to Eurostat)

- annual and quarterly financial accounts: comprehensive who-to-whom breakdown (transmitted to Eurostat)

- regional accounts: data are published by NUTS3 regions and NUTS2 main regions (transmitted to Eurostat) and nationally also by sub-regional units (not transmitted to Eurostat)

- pension table: column ‘H Social security’ breakdown by employer type into private and public employer schemes (not transmitted to Eurostat).

National accounts data are usually compiled for years and quarters.

In general, the ESA 2010 transmission programme requires data starting in 1995 (years) and 1995Q1 (quarters) but some series start later. If backwards data exist, they may have been compiled according to earlier versions of ESA and can present conceptual breaks with those compiled under ESA2010. 

 

Length of the published time series:

• Main aggregates, annual: 1975-
• Main aggregates, quarterly: 1990-
• Sector accounts, annual: 1975-
• Sector accounts, quarterly: 1999-
• Financial accounts, annual: 1995-
• Financial accounts, quarterly: 1997-
• Regional accounts: 2000-
• Government finance statistics: main aggregates of general government 1999-, general government debt 2000-, general government financial accounts 1998-, general government expenditure by function 1990-, taxes 1975-
• EDP deficit and debt: 1975- (reported to Eurostat 1995-)
• Non-financial balance sheets: 1995-
• Supply and use tables, input-output: 2010-
• Pension table: 2015
• Balance of Payments/IIP: 2006-
• Foreign direct investments: 2004-

New quarterly national accounts data are published each quarter: 4 times per year. However, depending on circumstances and national practices, initially released quarterly national accounts data may be revised and disseminated again. Annual national accounts data are published at least once a year: when data for a new year are added. But, depending on country practices and revision policy, annual data can also be published more often, e.g. publication of a provisional estimate early in the calendar year and a revised one later in the calendar year.

 

Until 2019 national accounts data will be published quarterly and/or annually as follows:

-        Quarterly National Accounts: t+60 days

-        Quarterly Sector Accounts: t+90 days

-        Annual National Accounts (including Sector Accounts): preliminary in March t+1, first revision in July t+1 and second in January t+2

-        Quarterly Financial Accounts: t+85 days

-        Annual Financial Accounts:  t+90 days

-        Non-financial Balance Sheets: t+9 months

-        Pension entitlements in social insurance: varies

-        Supply and use and input-output tables: normally 24 months

-        Trend indicator of output: t+45 days, every third month including flash GDP

-        Regional accounts: preliminary t+12 months, revision t+24 months

-        Quarterly government statistics: t+90 days or shorter

-        EDP deficit and debt: preliminary March t+1, revision September t+1

-        annual taxes and social contributions: preliminary March t+1, revision July t+1

-        annual government expenditure by function (COFOG): January t+2

Balance of Payments data are published monthly, quarterly and annually. After 2019 the revision policy of National Accounts and Balance of Payments will be integrated and harmonized along the common European revision policy. 

All data are published and transmitted to Eurostat always when they become revised.  Data are published both as a statistical release and as a statistical database update. The exception is the July revision of Quarterly Accounts because of benchmarking into annual accounts that is published only by updating StatFin database.

 Practices of Statistics Finland when changes are made to statistical data are described at:

http://tilastokeskus.fi/org/periaatteet/revisiokaytannot_en.html

Summary revision tables are published for each statistics under ‘Revisions in these statistics’. See for example Annual National Accounts: http://tilastokeskus.fi/til/vtp/2016/vtp_2016_2018-01-31_rev_001_en_html .

National accounts data should become available to users as timely as possible, taking into account the frequency of the data (annual or quarterly), the character of the data (info on the structure of an economy or on conjuncture developments) and an adequate balance between accuracy and timeliness.

The ESA 2010 transmission programme defines the required timeliness for all national accounts tables. Quarterly tables should become available between 2 and 3 months after the quarter-end. The annual tables have to be transmitted between 2 months (main aggregates) and 36 months (supply and use tables) after the end of the reference year.

Earlier availability for Annual Sector Accounts (in July), Quarterly Financial Accounts (t+85 days), Annual Financial Accounts (t+90), input-output tables and supply and use tables (normally 24 months).

Good practice requires that the dates on which national accounts data become available are pre-announced and that the pre-announced publication dates are met.

National accounts data transmissions in the framework of the ESA 2010 transmission programme should be punctually delivered to Eurostat at the timeliness defined in the transmission programme (or before).

Statistics Finland frequently delivers data ahead of the legal deadlines.

In most countries national accounts cover the domains national accounts main aggregates, government accounts, sector accounts regional accounts and supply and use tables. However, the content of the data on these domains as well as the (details of the) various breakdowns (by region, sector, industry, product, etc.) may deviate per country, depending on national needs and available sources.

The ESA 2010 transmission programme, consisting of 22 tables across all national accounts domains (see section10.3) defines the minimum national accounts data set that must be available in all Member States of the EU.

Statistics Finland typically publishes more detailed data than required by the transmission programme.

While revisions should be seen as a process to progressively improve the quality of national accounts as e.g. better sources and/or methods become available, the availability of metadata on revisions is a key element for understanding  national accounts data and revisions between subsequent releases.

Therefore, information on the main reasons for revisions and their nature (new source data available, new methods, etc.) as well as possibly quantitative and qualitative assessment on the average size of revisions and their direction based on historical data is required.

National accounts data are subject to continuous revisions as new input data become available. They are called routine revisions and entail regular revisions of country data and of the European aggregates, which are derived from the former.

More rarely, exceptional revisions (called benchmark revisions) will result from major changes in data sources, classifications or methodology. For example, when changing from ESA95 to ESA 2010, a benchmark revision occurred at country level and at euro area/EU data level.

Two Task Forces developed proposals for a more harmonised approach for benchmark and routine revisions. The one under the auspices of the Directors of Macroeconomic Statistics (DMES) dealt with benchmark revision policy, the other under the auspices of the Committee on Monetary, Financial, and Balance of Payments Statistics (CMFB) on the European Harmonised Revision Policy dealing with routine revisions. 

Statistics Finland has a revision policy for National Accounts. It is however not yet published on the Finland's statistical office website.

The latest major routine in Finland occurred in 2014 because of the implementation of ESA 2010. The latest benchmark routine in Finland occurred in 2014. In 2016 Finland has not performed routine revisions.

Regarding revision policy implementation, the recommended harmonized revision policy is not fully applied in Finland which allows for visible and temporary inconsistencies due to vintage effect. However, present revision policy will be changed in 2019 to implement harmonized revision policy.

The geographical comparability of national accounts in Member States of the EU is ensured by the application of common definitions of the European System of Accounts ESA 2010). Worldwide geographical comparison is also possible as most non-European countries apply the SNA 2008 guidelines, and SNA 2008 is consistent with ESA 2010.

Within the system of national accounts there is full consistency between the domains: annual and quarterly national accounts, government accounts, sector accounts, financial accounts, regional accounts, supply and use tables. However, in practice full consistency may not always be possible and temporary discrepancies might occur. They are usually the result of vintage differences.

Primary statistics like structural business statistics (SBS), short term statistics (STS) and labour force statistics (LFS) are widely used as input for national accounts. However, there is no full consistency between these statistical domains and national accounts. Main reasons are differences in concepts/definitions and in coverage. Balance of payments is also used as an important source for national accounts. The definitions and coverage of balance of payments, as defined in the BPM6 manual, are fully harmonised with those in ESA 2010. Therefore, balance of payments variables are in principle fully coherent with the corresponding national accounts variables.

The discrepancies between national accounts domains concern only the latest periods and are due to vintage (different timing of the calculations).

The domains concerned also include balance of payment. National accounts/financial accounts and balance of payments compilation systems are integrated so that both time series will be coherent until 2019.

National and regional accounts compilation builds up on statistics that are primarily collected for other purposes (primary statistics).

It relies on a variety of data sources, including administrative data: car and business registers, accounting statements, tax data, budgetary reports, population censuses, statistical surveys of businesses and households, statements of supervising institutions and branch organisations, annual and quarterly reports, trade statistics on goods and services, balance of payments information.

There is no single survey source for national accounts. Sources vary from country to country and provide statistical information on a large set of economic, social, financial and environmental phenomena, which may not be strictly related to national accounts.

Sources and collection methods used in each country vary depending on the specific dataset.

Overall, it is difficult to be exhaustive in the listing of data sources. Inventories provided to Eurostat usually include information on main sources (see section 10.6). Further information on data sources can be found on the national websites (http://tilastokeskus.fi/til/index_en.html).

The data collection is very country specific and also varies according to the nature of the data source, e.g. administrative data, tax and car registers, surveys, accounting statements.  Guidance can be found in the Handbook of Recommended Practices for Questionnaire Development and Testing Methods in the ESS.

National accounts departments typically do not collect data themselves but receive them from other departments or institutions. Countries can provide a more detailed description of the channels by which external data are collected.

The ESS guidelines suggest that the methods used for data collection should be described. It can also be appropriate to complete the section with the following issues: (i) an NSI usually signs an agreement and technical protocol for cooperation with other institutions on what, when, how, etc. the data would be delivered; (ii) national accounts department also participates in the development of the questionnaires of statistical surveys of other departments.

Data sources are described in methodological inventories of the statistics, see point 10.6.

National accounts are usually compiled on an annual or quarterly basis from other primary statistics. The frequency of data collection of primary statistics varies according to the nature of the data source. For example, business statistics are typically available on a monthly (and quarterly) basis. Some households' surveys are available on quarterly or annual frequency (sometimes even less frequent). Availability of administrative data varies from country to country. Population censuses are mostly collected every decade.

The frequency and timing of the compilation of national accounts are not necessary aligned with the frequency and timing of (all) primary statistics data collections.

National accounts departments typically receive/collect information in relation to their compilation schedule, i.e. for their annual or quarterly estimates. Countries can provide a description of the time of receiving external data.

Data sources, methods and compilation techniques are country specific, but should be employed in such a way that the definitions and concepts in ESA 2010 are met. Many guidance documents on general and specific national accounts compilation issues are available. See for more details section 10.6.

Key approaches and techniques for the compilation of national accounts in country X can be summarised as follows:

The leading approach to compile GDP in the framework of annual national accounts in Finland is the production approach. Consistency is obtained via reconciliation/balancing process. The same/another approach is used for the compilation of quarterly national accounts. Sector accounts are compiled after/together with main aggregates.

National accounts datasets are generally consistent although at the moment there may be vintage differences.

Data validation refers to any activity aimed at verifying that the value of a data item comes from a given set of acceptable values. It is a key task performed in all statistical domains and particularly important for national accounts, which is a key dataset for economic analysis and policy decisions.

In order to increase overall data quality and workflow efficiency, the European Statistical System (ESS) is moving towards more harmonisation of validation activities including the definition of common standards, tools and support for implementation (see ESS validation website). National accounts are a pilot in this area. An ESA 2010 Task Force on validation was established in 2015 to agree and document validation rules in an ESA 2010 validation handbook and progressively implement them in a pre-validation service for national accounts data.

The confrontation of data from different sources is an integral part of the national accounts compilation. Source data used in national accounts undergo a sequence of checks within NSIs.

The objectives of seasonal adjustment are to identify and remove seasonal fluctuations and calendar effects which can mask short and long-term movements in a time series and impede a clear understanding of underlying phenomena. Seasonal adjustment is therefore a fundamental process in the interpretation of time series to inform policy making (ESS guidelines on seasonal adjustment, 2015 Edition, Annex, point 1).

For selected sub-annual national accounts data, such as notably the quarterly main aggregates, time series are usually not only published in their unadjusted form, but also with various types of adjustment (e.g. seasonal, calendar, trend-cycle).

According to the ESA transmission programme, quarterly data are to be provided in non-seasonally adjusted form, as well as in seasonally adjusted form (including calendar adjustments, where relevant) except for previous year’s prices.

The provision of quarterly data that only include calendar adjustments is voluntary.
For sector accounts, seasonal adjustment (including calendar adjustments, where relevant) is compulsory for a limited set of series.

 Key approaches and techniques for the compilation of national accounts in Finland can be summarised as follows:

The leading approach to compile GDP in the framework of annual national accounts in Finland is the production approach. Consistency is obtained via balancing process. Notably, changes in inventories and valuables or gross operating surplus and mixed income are derived as residuals. The same approach is used for the compilation of quarterly national accounts. Sector accounts are compiled together with main aggregates.

Seasonal adjustment methods are described in Methodological description of Quarterly National Accounts http://tilastokeskus.fi/til/ntp/2014/ntp_2014_2014-10-13_men_001_en.html
Seasonal adjustment with the Tramo/Seats method used is described also in http://tilastokeskus.fi/til/tramo_seats_en.html

 

The general methodological framework for the compilation of national accounts in the EU is ESA 2010.

In addition, several handbooks have been developed to help compilers to produce national accounts data. Some of the most important methodological manuals are the Handbook on quarterly national accounts, Manual on regional accounts methods, Eurostat Manual of Supply, Use and Input-Output Tables, Manual on Government Deficit and Debt. Also, guidance manuals on specific topics are available, e.g. compilation guide on land estimation, compilation guide on inventories, Manual on measuring Research and Development in ESA 2010.

The manuals above specifically apply to EU national accounts statistics. However, world-wide equivalents are often also available: SNA 2008, Quarterly National Accounts Manual, Handbook on Input-Output Table Compilation and Analysis, Government Finance Statistics Manual.

 

Links to the published national methodological reports by domain/statistics:

-        Quarterly National Accounts: http://tilastokeskus.fi/til/ntp/men_en.html

-        Annual National Accounts: GNI inventory http://tilastokeskus.fi/til/vtp/vtp_2015_2016-06-02_men_001_en.html ; Historical time series http://tilastokeskus.fi/til/vtp/vtp_2013_2013-09-05_men_001_en.html

-        Quarterly Sector Accounts: http://ec.europa.eu/eurostat/documents/499359/8055980/FI+QSA_inventory_ESA2010.pdf/a5eb8736-0b68-4cbd-b004-6e0659d2a1ac

-        Annual Sector Accounts:  http://ec.europa.eu/eurostat/documents/499359/7752836/FI_ASA_inventory_ESA+2010_Oct2015.pdf/af33a5f3-cb78-46a7-a750-7003bc5a9e0b

-        Regional Accounts: http://tilastokeskus.fi/til/altp/2005/altp_2005_2008-06-30_men_001_en.html (latest updated 2009)

-        EDP: EDP inventory http://tilastokeskus.fi/til/jali/men_en.html

-        Government revenue, expenditure and main aggregates: Eurostat publication http://ec.europa.eu/eurostat/documents/3859598/5917333/KS-RA-11-013-EN.PDF/2eb9714a-ee4b-49fe-baab-e9af5ca457b1

-        COFOG: Eurostat publication http://ec.europa.eu/eurostat/documents/3859598/5917333/KS-RA-11-013-EN.PDF/2eb9714a-ee4b-49fe-baab-e9af5ca457b1

-        Financial Accounts: MIP quality report http://tilastokeskus.fi/til/rtp/men_en.html; Financial Accounts inventory (only in Finnish) http://tilastokeskus.fi/til/rtp/men.html

-        Balance of Payments: MIP quality report http://tilastokeskus.fi/til/mata/men_en.html

Statistics Finland

Economic Statistics

National accounts are compiled in accordance with the European System of Accounts (ESA 2010) which was published in the Official Journal as Annex A of Regulation (EU) No 549/2013. The ESA 2010 transmission programme is covered in Annex B

The ESA 2010 has the form of a Regulation and it provides for:

• a methodology (Annex A) on common standards, definitions, classifications and accounting rules that shall be used for compiling accounts and tables on comparable bases (link to blue book on ESA 2010 methodology);
• a programme of data transmission (Annex B) setting out the time limits by which Member States shall transmit to Eurostat the accounts and tables (link to ESA 2010 transmission programme).

Temporary derogations to the data transmission requirements have been granted to Member States, up to 2020, by the Commission Implementing Decision 2014/403/EU of 26 June 2014 thus allowing national data to deviate temporarily from the ESA 2010 transmission requirements.

Some other legal acts with relevance for national accounts concern:

- Commission Decision 98/715 of 30 November 1998 and Commission Decision 2002/990 of 17 December 2002 on measurement of price and volumes in national accounts.

- Legal act on the excessive deficit procedure

Several separate acts, often regarding classifications such as: NACE Rev.2, CPA 2014, COFOG, COICOP, NUTS 2013.

On the Eurostat website, sections 'National accounts'  and 'Government finance and EDP', more legal acts relevant for national accounts can be found.

National statistical legal acts are available at:

http://tilastokeskus.fi/org/lainsaadanto/index_en.html

In a statistical sense, ‘confidential data’ means data which allow statistical units to be identified, either directly or indirectly, thereby disclosing individual information. To determine whether a statistical unit is identifiable, account shall be taken of all relevant means that might reasonably be used by a third party to identify the statistical unit. Although national accounts data are usually highly aggregated, there may be possible cases for detailed breakdowns of aggregates and/or small economies. In these cases measures should be taken in order not to disclose data of a separate statistical unit. Guidance on how to prevent disclosure can be found in the Handbook on Statistical Disclosure Control.

The data submitted are flagged either by ‘N= not for publication before embargo date’ or ‘F=free’

In a statistical sense, ‘confidential data’ means data which allow statistical units to be identified, either directly or indirectly, thereby disclosing individual information. To determine whether a statistical unit is identifiable, account shall be taken of all relevant means that might reasonably be used by a third party to identify the statistical unit. Although national accounts data are usually highly aggregated, there may be possible cases for detailed breakdowns of aggregates and/or small economies. In these cases measures should be taken in order not to disclose data of a separate statistical unit. Guidance on how to prevent disclosure can be found in the Handbook on Statistical Disclosure Control.

The data submitted are flagged either by ‘N= not for publication before embargo date’ or ‘F=free’

National accounts data are key datasets used and published by many international organisations to improve data consistency and exploit synergies for data collection and validation. An initiative to improve data sharing for National Accounts was launched in 2016 by the Inter-Agency Group on Economic and Financial Statistics (comprising representatives of the Bank for International Settlements, the European Central Bank, Eurostat, the IMF, the Organization for Economic Co-operation and Development, the United Nations, and the World Bank)  under the G20 Data Gap Initiative.

Data are transmitted via Eurostat to other international organisations.

Quarterly Financial Accounts data, Balance of Payments data and Government Financial Statistics data are directly transmitted to ECB, too.

In addition to news releases and other publications, information on national accounts may be posted using social media.

National Accounts and Balance of Payments web and other publications are available also in English.

National accounts data provide key information for economic policy monitoring and decision making, for forecasting, for administrative purposes, for informing the general public about economic developments (directly or indirectly via news agencies), and as input for economic research.

At national level, ministries of finance and regional development, scientific and academic communities and economic researchers are usually the entities who most use national and regional accounts data.

International institutions can be considered as “clients” of NSI.

The importance of national accounts requires that documentation should be available on the procedures applied for quality management and quality assessment. Examples of such documentation are national accounts quality reports, quality studies and reports on revision analysis.

Quality reports are obligatory for all statistics. They are based on national standard and are available on the web page of each statistics.