1 Transition of National Accounts of the Republic of Belarus to 2008 SNA Methodology and Cooperation between Producers of Official Statistics National

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Transition of National Accounts of the Republic of Belarus to 2008 SNA Methodology and Cooperation between Producers of Official Statistics

National Statistical Committee of the Republic of Belarus

I.V.Sergeychenko

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National Accounts of the Republic of Belarus

• goods and services account;

• production account;

• generation of income account;

• allocation of primary income account;

• secondary distribution of income account;

• use of income accounts;

• capital account.

Current StateCurrent State

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Trends in Implementation of the 2008 SNA

•A working group has been approved for implementation of the 2008 SNA main provisions into statistical practice;

•An action plan for implementation of the 2008 SNA has been approved;

•Technical assistance by IMF experts;

•Involvement of national account experts in training workshops.

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Main Priorities for Improvement of National Accounts and Implementation of the 2008 SNA

• Implementation of new classification of economic activities (CCEA 005-2011) since January 2016. Such classification has been developed based on classification of economic activities of the European Union NACE v. 2.0.;

• Expenditures for R&D activities;

• Inclusion of military expenditures ;

• Financial intermediation services indirectly measured;

• Services of owner occupied housing;

• Development and implementation of classification of institutional units by economic sectors in line with the recommendations of the 2008 SNA;

• Improved estimates of non-observed economy.

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• statistical surveys by types of economic activities were conducted for two years with two versions of CCEA;

• retrospective calculations by indicators of national accounts have been performed since 2010.

Classification of economic activities CCEA 005-2011Classification of economic activities CCEA 005-2011


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• Disaggregation of survey data and data validation has been conducted, which allowed calculation of output, intermediate consumption and gross fixed capital formation by three groups:

• market producers active on the market;

• market producers which do not have sales (R&D development is performed at own expense);

• units of general government sector.

Expenditures on R&D activitiesExpenditures on R&D activities


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This issue has been resolved in cooperation with the Ministry of Defence.

Determined expenditures for armament systems, which are constantly used for production of defence services.

Annual data on expenditures for armament systems have been provided, as well as data on volume and prices of assets in the year of acquisition and service-lifes

Consumption of fixed capital has been calculated.

Inclusion of military expendituresInclusion of military expenditures


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Currently, the FISIM is calculated according to the 93 SNA and is presented as a separate economic sector

In line with the 2008 SNA, the estimates for FISIM are done separately for deposits and loans using reference rate

When assessing the reference rate, the interbank rates were taken into account, as well as the highest bank deposit rates, the lowest credit rates and long-term government bond rates

Financial intermediation services indirectly measuredFinancial intermediation services indirectly measured


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Financial Intermediation Services Indirectly Measured

FISIM, bln BYR GDP, bln BYR

2011 2012 2011 2012

93 SNA 9,359.3 12,808.8 297,157.7 530,355.5

2008 SNA 8,552.4 11,704.6 301,385.6 536,020.9

Share in GDP, in %

93 SNA 3.1 2.4

2008 SNA 1.4 1.3

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FISIM after Distribution by Types of Economic Activity

As percentage of GDP (93 SNA)

As percentage of GDP (2008 SNA)

Gross domestic product 100 100

including:

Taxes less subsidies on products 12.7 12.3

Gross value added 87.3 87.7

Agriculture, hunting & forestry 8.5 8.3

Fishing 0.1 0.1

Mining and quarrying 1.1 1.0

Manufacturing 26.1 25.2

Electricity, gas and water supply 2.9 2.8

Construction 7.4 7.2

Wholesale & retail trade; repairs 14.0 13.3

Hotels and restaurants 0.7 0.7

Transport, storage and communications 7.5 7.0

Financial intermediation 3.7 3.4

Real estate, renting & business activities 6.0 7.4

Public administration and defence; compulsory social security 3.0 2.9

Education 3.9 3.8

Health and social work 2.9 2.8

Other community, social and personal service activities 1.9 1.8

FISIM (Financial intermediation services indirectly measured) -2.4 -

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According to the 93 SNA methodology, the housing services are estimated using annual average square of owners occupied housing and maintenance expenditures. Rental expenditures (excluding communal payments), obtained from sample household survey are added to the estimate.

According to the 2008 SNA, a user expenditure method has been used to determine imputed rent of owner occupied housing

Owner Occupied Housing servicesOwner Occupied Housing services


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Owner Occupied Housing Services

Years 1993 SNA 2008 SNA

Output GVA Output GVA

2010 2,197 1,788 6,199 4,841

2011 2,560 2,033 9,699 6,992

2012 3,583 2,771 16,263 12,305

Shares in GDP

2010 1.1 2.9

2011 0.7 2.3

2012 0.5 2.2

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An interdepartmental group on development and implementation of the classification has been established

Model classification has been developed by the CIS Statistical Committee and ECE

Recommendations on application of the ECE classification of institutional sectors in member-states of the Eurasian Economic Union have been prepared

Classification of institutional units Classification of institutional units


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Non-observed economy – types of economic activity not captured by the official statistics

•hidden economy is an activity which is permitted by law, but is intentionally hidden to defraud the revenue and avoid to pay taxes and other mandatory payments

•informal economy is an activity on production, circulation and disposition of goods and services which is conducted mainly according to the law by individuals, private entrepreneurs, based on informal relationships between production participants

•illegal activity is an activity which is forbidden by law or types of activity which are performed without permission, for example, unlicensed medical practice


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Impact of the 2008 SNA Methodology on GDP (Production Method) for a Year of 2012

Impact on GDP in %

Primary changes affecting GDP as per the2008 SNA

Change in accounting of research and development 0.6

Change in accounting of military expenditures 0.1

FISIM 0.9

Imputed payment of owner occupied housing 1.8

GDP (2008 SNA)3.4

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Impact of the 2008 SNA Methodology on GDP (End-use Method) for a Year of 2012

Impact on GDP in %

GDP 3.4

Final consumption expenditure 3.0

Final consumption expenditure of households 3.1

Final consumption expenditure of general government, including: - 0.1

Individual consumption of general government -

Collective consumption of general government - 0.1

Final consumption expenditure of NPISHs -

Gross capital formation 0.8

Gross fixed capital formation 0.8

Changes in inventories -

External balance on goods & services -

Exports of goods & services -

Imports of goods & services -

Statistical discrepancy - 0.4

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Documents

1 Transition of National Accounts of the Republic of Belarus to 2008 SNA Methodology and Cooperation between Producers of Official Statistics National