ICP National Accounts Expenditures Data


 

Framework and classification

Data Compilation

Data Validation

 

Framework and classification

The national expenditures that economies supply for an ICP comparison are essential to the comparison. First, they are the expenditures that will be deflated and expressed as real expenditures.  Second, they are the weights used to aggregate basic heading PPPs through the various levels of aggregation up to GDP. Neither the real expenditures nor the aggregated PPPs will be reliable unless the national expenditures provided by economies are comparable—that is, they are compiled using the same definitions of GDP and its component expenditures and are equally exhaustive in their measurement of economic activity. The common national accounts framework was SNA93 for the ICP 2011 and SNA2008 for the current ICP cycle.

The ICP expenditure classification adheres to the concepts, definitions, classifications, and accounting rules of SNA. It gives the comparison structure. Economies are expected to estimate their national expenditure for the reference year broadly in line with SNA and to break down their GDP estimate into the component expenditures identified in the classification. The component expenditures comprise different levels of aggregation. At the lowest level of aggregation, they are called basic headings. The classification breaks down the expenditure on final goods and services into 155 basic headings that comply with the functional and product classifications of SNA. Basic headings are the building blocks of the comparison. They are the level at which expenditures are defined and estimated, products are selected for pricing, prices are collected and validated, and PPPs are first calculated and averaged.

SNA defines GDP from the expenditure side as the sum of the expenditures on final consumption, gross capital formation, and net exports. Final consumption is the total expenditure on the goods and services consumed by individual households or the community to satisfy their individual or collective needs. Gross capital formation is the total expenditure on gross fixed capital formation, changes in inventories, and acquisitions less disposals of valuables. Net exports are the difference between the value of goods and services exported and the value of goods and services imported.

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Data Compilation

Economies are required to report their national expenditures broken down into 155 basic headings, as defined in the ICP expenditure classification.

The data sources used in compiling national accounts differ significantly from one economy to another depending on the type of statistical system in place, the extent to which data are taken from administrative sources or from statistical surveys, and the methods underlying the accounts. Chapter 1 of the Operational Guidelines and Procedures for Measuring the Real Size of the World Economy provides detailed explanation for the categories of basic headings; the ways in which to identify sources; the GDP splitting approaches; the Model Report on Expenditure Statistics (MORES); and the conditional step-by-step process that will indicate which process to use.

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Data Validation

National accounts data validation requires three stages: first, intra-economy validation carried out by the NCAs individually, second inter-economy validation carried out by the Regional Implementing Agencies (RCAs) in consultation with their National Implementing Agencies (NIAs), and third inter-regional validation carried out by the Global ICP Unit in consultation with the Regional and the National agencies.

Before the national accounts data are sent to the regional offices, simple edits can be applied at the national statistics offices. Three main types of checks are undertaken: (1) SNA compliance, including conducting data completeness checks (nonzero values), checking any negative values, ensuring the allocation of financial intermediation services indirectly measured (FISIM), checking the allocation of net expenditures, and conducting basic arithmetic checks; (2) price validation, including implementing price tracking for major products, verifying average price changes from the previous rounds, and checking the consistency of price level indexes (PLIs) across basic headings within an economy; and (3) an economic likelihood test such as verifying per capita basic heading expenditures and basic heading shares of GDP.

All validation edits at the national level must be repeated at the regional level. The aim of the regional validation is to compare the consistency of data from similar economies within a region. The regional implementing agency identifies clusters of economies using economically based and regionally agreed-on criteria. GDP per capita in previous years serves as a key indicator of the group to which an economy is allocated.

The global comparison of real expenditures (and their per capita equivalents) is the result of the process of linking regional results together to produce global results. At the global level, the same intra-economy validation processes as previously defined are followed. The inter-economy validation process is also followed across economies and within and between regions.

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