Presentation on theme: "1 OECD WP National Accounts October 2005 ISIC Revision 4: Top-top and Intermediate Aggregation Structures (for SNA data reporting by activity) OECD proposals."— Presentation transcript:
1 OECD WP National Accounts October 2005 ISIC Revision 4: Top-top and Intermediate Aggregation Structures (for SNA data reporting by activity) OECD proposals William Cave OECD Statistics Directorate
2 OECD WP National Accounts October 2005 What is ISIC? International Standard Industrial Classification of All Economic Activities (ISIC) The official activity classification of SNA To classify economic entities (units) according to activity they carry out Original ISIC 1948 Rev 1 1958, Rev 2 1968, Rev 3 1989 Minor Revision 3.1 2002, Major Revision 4 planned for 2007
3 OECD WP National Accounts October 2005 Design principles & priorities for ISIC rev 4 Improve international comparability –convergence of regional classifications –E.g. NAICS,NACE,JSIC,CSIC,ANZSIC etc –engage more countries & regions in ISIC design –target for international comparability at least 2 digit level Relevance –Information sector, internet, telecoms –OECD ICT definition –environmental services –new technologies –growing business service sector –health services –tourism –agriculture Continuity – long time series Level of detail for an international classification?
4 OECD WP National Accounts October 2005 ISIC 3 and ISIC 4 top-level
5 OECD WP National Accounts October 2005 ISIC rev 4: A Top-top Structure? What are SNA needs? SNA AEG, OECD and Eurostat national accountants have agreed need for top-top structure to ISIC rev 4 of about 10 categories OECD national accountants proposed that intermediate aggregation of 30-40 categories useful for international comparison within OECD. SNA AEG in Dec 2004 were undecided. Currently OECD and Eurostat use A6/A17/A31/A60 aggregations of ISIC rev 3 in national accounts questionnaires
6 OECD WP National Accounts October 2005 Proposed set of ISIC 4 SNA data aggregations? A*10/11 top-top A*21 = ISIC rev 4 Sections A*38 = ISIC rev 4 Sections + 17 sub-sections (intermediate) A*88 = ISIC two digit divisions
7 OECD WP National Accounts October 2005 Autumn 2004 set aim to agree top-top and intermediate ISIC 4 aggregations for reporting national accounts data by activity Initial proposals from Eurostat, UNSD and France OECD analysts raised issues: – international comparability, relevance, and continuity for long time series analysis; –the needs of input-output, policy interests, productivity analysis, separately identifying activities that follow different tracks in economic cycle OECD SNA Industry EDG established to encourage participation Proposals developed in consultation with Eurostat and UNSD OECD exercise
8 OECD WP National Accounts October 2005 Process First OECD proposal circulated February 2005 Revised proposal in light of comments 24 May –Set out specific questions on most contentious issues Sent to all OECD member national accountants, EDG, classifications experts, Eurostat, UNSD Reviewed by UNSD Expert Group on Classifications June 2005 Comments received from 15 countries, Eurostat and ECB
9 OECD WP National Accounts October 2005 Constraints Preference for following ISIC structure ISIC 4 draft was changed in March and August 2005 – now finalised Some ISIC structural and ordering changes on real estate and public administration made for top-top Take into account current ISIC 3 aggregations Consider Eurostat A65 draft & US BEA GDP by industry (~65)
10 OECD WP National Accounts October 2005 OECD proposal for Top-top aggregation ISIC rev 4 sectionsDescription 1AAgriculture, forestry and fishing 2B,C,D and EManufacturing and other industry 2a C Of which: Manufacturing 3FConstruction 4G, H and ITrade, transport & hotels etc 5JInformation & communication 6KFinancial & insurance 7LReal estate activities 8M and NBusiness services 9O, P and QPublic admin; education, human health and social work 10R, S, T and UOther services
11 OECD WP National Accounts October 2005 Illustrative v.a. weights for selected countries DescriptionFranceUSAustralia Agriculture, forestry and fishing2.51.03.5 Manufacturing and other industry19.516.019.5 Of which: Manufacturing16.512.511.0 Construction5.04.56.5 Trade, transport & hotels etc17.518.520.0 Information & communication5.05.55.0 Financial & insurance5.08.07.0 Real estate activities12.011.510.0 Business services11.511.0 Public admin; education, human health and social work 20.020.515.0 Other services2.03.52.5
12 OECD WP National Accounts October 2005 Responses on top-top i) Group OPQ and RSTU or ii) O and PQRSTU –i) 9 ii) 7 very close but chose option i) Support A10/11? –Yes 14, No 2 –Two suggested A12 with mining –One favoured A10 combine L with MN –One favoured A6 if to be used for quarterly reporting
13 OECD WP National Accounts October 2005 Proposal for intermediate aggregation A*38 1AAgriculture, forestry and fishing 2BMining and quarrying 3CAFood products, beverages and tobacco 4CBTextiles, wearing apparel and leather products 5CCWood and paper products, and printing 6CDCoke, and refined petroleum products 7CEChemicals and chemical products 8CFPharmaceuticals, medicinal chemical & botanical products 9CGRubber and plastics products, & other non-metallic mineral products 10CHManufacture of basic metals and metal products 11CIManufacture of computer, electronic & optical products 12CJManufacture of electrical equipment 13CKManufacture of machinery and equipment n.e.c.
14 OECD WP National Accounts October 2005 Proposal for intermediate aggregation 2 14CLTransport equipment 15CMOther manufacturing and repair 16DElectricity, gas, steam and air-conditioning supply 17EWater, sewage, waste management and remediation 18FConstruction 19GWholesale and retail trades 20HTransportation and storage 21IAccommodation and food service activities 22JAPublishing, audiovisual and broadcasting activities 23JBTelecommunications 24JCIT and other information services 25KFinancial and insurance activities 26LReal estate activities
15 OECD WP National Accounts October 2005 Proposal for intermediate aggregation 3 27MALegal, accounting, management, architecture, engineering, technical testing etc 28MBScientific research and development 29MCOther professional, scientific and technical activities 30NAdministrative and support service activities 31OPublic administration and defence 32PEducation 33QAHuman health services 34QBResidential care and social work activities 35RArts, entertainment and recreation 36SOther services 37T*Activities of households as employers of domestic personnel and undifferentiated production of households for own use 38U*Extra-territorial organizations and bodies
16 OECD WP National Accounts October 2005 Issues for intermediate aggregation Comparable SNA data reporting for Europe, N America and Asia-pacific and preferably wider Follow ISIC order and hierarchy Consider analytical relevance and continuity ICT, R&D, Energy, Distributive trade Keep approximate A31 level of detail for manufacturing – for continuity and robustness of data More service activities Eurostat and US A65 levels
17 OECD WP National Accounts October 2005 Responses on intermediate proposal Not to break out mining of energy materials –Yes 9, No 5 Combine Section G Trade divisions into one for international comparability –Yes 11, No 3 Agree split on human health and social work –Yes 12, No 3 Break out R&D –Yes 13, No 3 Break out manufacturing at about same level as A31 –Yes 10, No 1 Keep the group manufacture of transport equipment as in A31 –Yes 9, No 4
18 OECD WP National Accounts October 2005 Questions and Proposed Next Steps Can these proposed aggregations be accepted for SNA data reporting? In particular: Do you agree the A*10/11 proposals are suitable for an ISIC top-top aggregation for SNA data reporting Do you agree the proposed intermediate A*38 is suitable for SNA data reporting? Any further comments are invited Subject to delegates views a final OECD paper would be submitted to ISWGNA in November for consideration by the SNA AEG January 2006 P.S.: Should a standard grouping for service activities be recommended or not?
19 OECD WP National Accounts October 2005 Thank you for your attention