B A N C O C E N T R A L D E C H I L E 1

Chilean experience regarding Trade in Services compilation and current developments

Balance of Payments

and External Debt Department

WPTGS Meeting, October 2010

B A N C O C E N T R A L D E C H I L E 2

OUTLINE

1. General framework

2. Services compilation: main sources and method of calculation

3. Dissemination of data and revisions

4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 3

OUTLINE

1. General framework

2. Services compilation: main sources and methods of calculation

3. Dissemination of data and revisions

4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 4

General framework

Services in Chile are compiled following broadly BPM5 recommendations.

Include transactions between residents and non residents.

Detailed components.

BoP compilation: positive assessment. IMF’s Report on the Observance of Standards

and Codes (ROSC), September 2007. OECD’s Statistics Directorate.

B A N C O C E N T R A L D E C H I L E 5

Components presented

TRANSPORT (share in exports 2009, 55%)

Sea Transport Passenger Freight Other

Air Transport Passenger Freight Other

Other modes Passenger Freight Other

B A N C O C E N T R A L D E C H I L E 6

Components presented

TRAVEL (share in exports 2009, 18%) Business Personal

OTHER (share in exports 2009, 27%) Communications services Insurance services Financial services Computer and information services Royalties and license fees Other business services Personal, cultural and recreational services Government services

B A N C O C E N T R A L D E C H I L E 7

ALADI countries: exports of goods and services, % of world trade

Exports of goods

Exports of services

Source: ECLAC

B A N C O C E N T R A L D E C H I L E 8

Exports of services: LA and Asia dynamics

Source: ECLAC

B A N C O C E N T R A L D E C H I L E 9

Latin American countries: exports of services as a share of GDP (2008-09)

Source: ECLAC

B A N C O C E N T R A L D E C H I L E 10

Trend in Chile shows a deficit in Balance of Services…

Balance of Services trend 2000-2009 (USD millions of dollars)

-3.000

-

3.000

6.000

9.000

12.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009-1.500

-

1.500

3.000

4.500

6.000

Exports Imports Net balance

B A N C O C E N T R A L D E C H I L E 11

Transport trend is more balanced…

Transport Services trend 2000-2009 (USD millions of dollars)

-2.000

0

2.000

4.000

6.000

8.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009-1.000

-

1.000

2.000

3.000

4.000

Exports Imports Net balance

B A N C O C E N T R A L D E C H I L E 12

Other Services group shows a higher deficit…

Other Services trend 2000-2009 (USD millions of dollars)

-4.000

-3.000

-2.000

-1.000

0

1.000

2.000

3.000

4.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009-2.000

-1.500

-1.000

-500

-

500

1.000

1.500

2.000

Exports Imports Net balance

B A N C O C E N T R A L D E C H I L E 13

OUTLINE

1. General framework

2. Services compilation: main sources and methods of calculation

3. Dissemination of data and revisions

4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 14

Sources are broadly adequate to compile Services statistics

International Transaction Reporting System (ITRS), adapted for statistical purposes.

Public institutions. Surveys. The first calculations are often

estimations, which are replaced later (usually next quarter), when data sources are available.

B A N C O C E N T R A L D E C H I L E 15

Transport: method of compilation

Freights, based on register sources: ITRS information (third countries

operation), completed with Customs Service registers.

Passengers: Complete coverage based on ITRS, for

air and sea modes. Other modes of transport, estimation

derived from Customs Service information.

B A N C O C E N T R A L D E C H I L E 16

Transport: method of compilation

Other Services: Complete coverage based on ITRS, for air

and sea modes. Form includes each type of auxiliary activity.

Other modes of transport, estimation derived from Customs service information.

First calculation obtained from estimations. ITRS information is received with lag of 60-90 days.

B A N C O C E N T R A L D E C H I L E 17

Travel: method of compilation

National Tourism Bureau

(SERNATUR). Quarterly survey of expenses and length of stay for inbound and outbound travelers. Three-month lag.

International Police. Cross-border passenger movement: number of travelers entering and leaving the country. One month lag, making possible preliminary estimation.

B A N C O C E N T R A L D E C H I L E 18

Other Services: method of compilation

ITRS forms; e.g. Insurance. Benchmark surveys, complemented with

regular estimations; e.g. Communication, Computer and Information, Business services.

Public institutions: Superintendency of Pensions, Superintendency of Banks, Internal Revenue Service; e.g. Financial services, Cultural and Recreational services.

B A N C O C E N T R A L D E C H I L E 19

OUTLINE

1. General framework

2. Services compilation: main sources and methods of calculation

3. Dissemination of data and revisions

4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 20

Dissemination of data

Services statistics are calculated and published with quarterly periodicity.

Releases: March 18, May 18, August 18 and November 18.

Accessibility: Central Bank’s Monthly Bulletin BoP Yearbook Statistical Database

B A N C O C E N T R A L D E C H I L E 21

Revision policy

Quarterly releases are revised in the year: May, August and November.

Further revisions are made for annual BoP releases: the first version for year t is disseminated in March year t+1; the Provisional version in March year t+2; and the Final Revised version March year t+3.

Exceptional revisions may be made if necessary.

B A N C O C E N T R A L D E C H I L E 22

OUTLINE

1. General framework

2. Services compilation: main sources and methods of calculation

3. Dissemination of data and revisions

4. Current developments and challenges

B A N C O C E N T R A L D E C H I L E 23

Geographical breakdown of services

First step achieved: Travel (published in March 2010 on Central Bank website).

Second step: Transport. In progress, exploring sources and availability

of information. Expecting to publish in 2011. Includes freights, freights between third

countries, passengers and main auxiliary services.

B A N C O C E N T R A L D E C H I L E 24

Improving Other Services measurement…

Lack of a well-defined benchmark population.

Enterprises from this group usually show high dynamics and dispersion, making difficult to identify all transactors.

Build a strong Business Register is a complex task.

B A N C O C E N T R A L D E C H I L E 25

Through the macroeconomic statistical infrastructure…

The structural surveys in the Other Services sector for National Accounts may improve the availability of data.

That means to take advantage from National Statistics Office experience: e.g. business register consistency; forms.

Identifying export transactors, including country of destination.

Methodological consistency with National Accounts statistics.

B A N C O C E N T R A L D E C H I L E 26

Through the macroeconomic statistical infrastructure…

Agreement subscribed with National Statistics Office, in order to implement a specific module for export transactors in last quarter 2010.

Preliminary internal results in 2011.

B A N C O C E N T R A L D E C H I L E 27

Implementation of BPM6: exploring most important changes

Fees for processing goods, to be included in services.

Repairs on goods, to be classified as services.

Financial intermediation services indirectly measured (FISIM): Margin between interest payable or

receivable and the reference rate (pure interest) on loans and deposits.

Pure interest included in primary income.

B A N C O C E N T R A L D E C H I L E 28

Chilean experience regarding Trade in Services

compilation and current developments