Session 1 Quality assessment of national accounts data Workshop on national accounts for Asian member countries of the organization of Islamic Conference Ankara, Turkey 1-2 December 2008 by Devi Manraj IMF Regional statistics advisor

2 u Importance of national accounts in the system of macroeconomic statistics u 1993 SNA provides conceptual framework for all macroeconomic statistics  Balance of payments  Monetary and financial statistics  Government finance statistics u Timely, accurate and reliable statistics in line with the United Nations Principles of official Statistics u High quality macroeconomic statistics to produce sound economic and monetary policies Good quality national accounts statistics

3 u To use internationally accepted recommendations and standards u To ensure consistency among the macroeconomic statistics u To enable cross-country and inter-temporal comparisons using same concept of  Residency  Classification  Recording and valuation of stocks and flows Why implement the 1993 SNA?

4 u Absence of a supportive legal framework u Lack of skill and expertise in national accounting u Inadequate financial and technical resources u Lack of self confidence in staff officers u Absence of leadership What are the constraints to implement 1993 SNA?

5 u Strengthen the legislation for NSOs to oversee and coordinate the national statistical system u Secure high level political commitment u Mobilize adequate human and financial resources u Request for technical assistance to improve methodology u Build self confidence of staff u Maintain trust and confidence in national accounts statistics What should be done?

6 u Provide training and have a pool of trainers in national accounting methodology u Develop analytical skill of staff to interpret data u Encourage countries to join the Fund General Data Dissemination System (GDDS) u Encourage GDDS members to subscribe to the Fund Special Data Dissemination Standards (SDDS). For National Accounts is GDP and so much more ….!! What should be done ? (continued)

7 All countries broadly follow the 1993 system of national accounts For example, some countries : u Are still using the 1968 SNA terminology, not recording transactions at basic prices, not using international classification of activities and products u Do not regularly prepare GDP by the expenditure approach and do not use the Supply and Use Table framework u Do not have a data collection strategy- sample surveys/economic census/household expenditure survey/labur force survey u Do not have a systematic compilation/processing system u Do not document national accounting methodology Assessment of quality of national accounts

8 IMF Framework for assessment of data quality u IMF’s Data Quality Assessment Framework (DQAF) 2003, u To assess  Quality of the statistical institution  Quality of the process  Quality of the statistical product

9 For more details ….. u IMF’s Data Standards Bulletin Board (  Focus: Dissemination of information describing a country’s current dissemination and compilation procedures for economic and social statistics and plans in place for their improvement. u IMF’s Reports on Observance of Standards and Codes (  Focus: Broad assessment of the quality of statistics based on current dissemination and compilation procedures and plans for their improvement. u IMF’s Framework Data quality Assessment framework (DQAF)at u