1 TIMING OF THE INTRODUCTION OF THE UPDATED SNA AND THE REVISED ISIC IN THE NATIONAL ACCOUNTS OF OECD MEMBER COUNTRIES Charles Aspden Working Party on National Accounts, October 2006

2 Updated SNA and revised ISIC It is expected that the ISIC rev. 4 and the 1993 SNA rev. 1 will be promulgated in 2007 and 2008, respectively. EU countries have already decided that they will adopt the revised ISIC in 2011 and while no decision has yet been made when the updated ESA will be adopted, it is unlikely to be before 2013/14. In order to plan for the transitions the OECD has conducted a survey to find out what are the intentions of non-EU member countries.

3 Updated SNA and revised ISIC Replies to the survey questionnaire received from: –Australia, Canada, Japan, Korea, Mexico, New Zealand, Switzerland and US

4 Revision to ISIC and other SICs Most OECD countries use an adaptation of the ISIC. In some cases they share a regional SIC and in other cases they have their own country-specific SIC: –EU countries and some other European countries use NACE –North American countries use NAICS –Australia and New Zealand use ANZSIC –Japan has JSIC –Korea has KSIC All these SICs have either been revised recently or will be revised shortly

5 Revision to ISIC and other SICs SICTiming of Revision ISIC rev NACE rev NAICS plus minor revision in 2007 ANZSIC Revised JSICprobably 2007 or 2008 Revised KSICprobably 2007 or 2008

6 Revision to ISIC and regional SICs A special effort has been made to harmonise the revised regional SICs and ISIC at least at the 2-digit level. The OECD developed proposals for two SNA/ISIC aggregations for SNA data reporting –The “top-top” - 10 categories with an “of which” item to isolate manufacturing. –A38. Both have AEG support and are expected to become the internationally recommended categories for the reporting of national accounts data. At least in principle, those countries adopting the revised NACE, NAICS 2002 and ANZSIC 2006 should be able to match the two SNA/ISIC aggregations closely.

7 Adoption of the revised SICs and supply of data per A38 SNA/ISIC CountryIntroduction Data from Europeans (NACE)2011at least 1995 Canada (NAICS)2010 Mexico (NAICS) ? US (NAICS) Australia (ANZSIC) ? New Zealand (..)2010/11?1972 (1978 volume) Japan (JSIC)2015?? Korea (KSIC)2014?1970

8 Implementation of 1993 SNA rev.1 CountryIntentions EuropeansNo earlier than 2013/14 Australia2009, same as ANZSIC and BPM, for most, if not all, changes Canada2010 for all changes US2012/13 for most (outstanding) changes Korea2014?, same as KSIC Japan2015?, same as JSIC New Zealand no schedule yet, but all changes at once Mexicono schedule yet, but introduced piecemeal

9 Implementation of 1993 SNA rev.1 Summary Australia, Canada and US have quite firm plans to introduce the update SNA quite rapidly. All three intend to adopt at least all the major proposed changes, including –Employers’ pension schemes (2), –R&D (9), –Government and non-market producers – cost of capital (16), –Military expenditures (19). Australia and Canada synchronised with revised SIC US staggered introduction

10 Implementation of 1993 SNA rev.1 Summary Japan and Korea have tentative plans to synchronise their adoptions of the updated SNA and SICs in 2015 and 2014, respectively. NZ and Mexico have no firm plans

11 Implementation of 1993 SNA rev.1 Summary Clear that OECD countries will adopt the updated SNA at different times, and for most countries no firm date has been set. However, it seems that there is a reasonable probability that most OECD countries will have made the switch by Countries with no plans to make the switch by 2014 are asked to consider their position.