Grant project increased the quality of GDP and GNI figures
EU grant support has recently improved source data, improved methodology and accelerated the compilation of key macroeconomic indicators. The introduction of new and innovative tools is an important part of improving the quality of official statistics.
The Statistical Office of the Slovak Republic is improving the methodology and procedures and also expanding the source data when compiling macroeconomic indicators, especially the structures of Gross Domestic Product (hereinafter GDP) and Gross National Income (hereinafter GNI). Currently, the results and improvements achieved within the framework of the grant project called “Improving the quality of the national accounts of the Slovak Republic, including gross national income” 1) have been incorporated into the data over the past year and a half.
„The aim was to expand and improve the quality of input data, precise methodological procedures and accelerate the compilation of final outputs of key macroeconomic indicators within the national accounts. After 15 months, it is currently possible to better monitor the balance of payments flows and financial flows in the national accounts system, “ said Michal Čepela, Director of the Sector Accounts Department of the Directorate of Macroeconomic Statistics of the Statistical Office of the Slovak Republic.
The changes implemented within the grant project:
- more precise classification of individual expenditures of general government sector and faster providing of final datasets,
- precision of the calculation of consumption of fixed capital and gross and net stocks of asset values using the perpetual inventory method (PIM),
- improving the quality of input source data for compiling of gross national income, which contributes the largest share in the creation of the EU budget,
- a comprehensive inventory of sources and methods for compiling of financial accounts.
More accurate classification of expenditures and automation of data processing
The first goal of the grant was to improve the classification of general government expenditures according to the COFOG classification, which contributed to a more accurate picture of government expenditures. The development of an IT tool in the SAS program, as well as the use of the Visual Basic Application, contributed to the earlier date of compilation of complete statistical data into the transmission table compared to their original sending date. This significantly automated the processing of extensive source datasets into the final output table.
Improved method for asset recording
The introduction of the perpetual inventory method (the so-called PIM method), as the second objective of the grant project, significantly contributed to a more accurate calculation of consumption of fixed capital, which represents a decrease in the value of owned fixed assets due to their normal wear and tear and obsolescence. These values affect the total value of gross and net asset stocks in various structures 2). The condition for a new calculation of consumption of fixed capital was to provide data for the gross fixed capital formation indicator in sufficiently long time series together with price indices, to refine the calculation of depreciation and asset retirement, as well as to refine the average service lives of individual types of assets. At the same time, a new IT tool, the PIM application, was launched, which automated complicated calculations. Its added value is the quick selection of variables for the calculation itself. The output of the application is a structured database file for automated processing of extensive output data sets.
Better input data sources for the EU budget
The third grant task package resulted in both source and methodological improvements to the compilation of gross national income (one of the sources for the distribution of funds from the EU budget). Attention was focused on three specific information flows, namely:
- data on imported used cars from abroad, where the final user is the household sector, as well as the purchase of used cars by households from resident companies,
- data flows for inward processing,
- an estimate of rent from land in the territory of the Slovak Republic owned by non-resident entities, as well as rent from land owned by resident entities in the territory of another state.
Complete metadata in one document
The fourth grant task was aimed at compiling a final document with a detailed description of source data and methods, the so-called AFA Inventory. This is a detailed methodological description that allows users to better understand the entire process of compiling financial flows and stocks broken down by financial instruments and institutional sectors according to system of national accounts ESA 2010. It is compiled in the required technical structure and is publicly available on the office's website.
All new procedures resulting from the grant are already currently incorporated into statistical products and outputs in the public database DATAcube, as well as in informative reports.
The Statistical Office of the Slovak Republic is involved in several grants aimed at improving the quality of European statistics within the European Statistical System (ESS) and financed from EU funds. These are activities within the Single Market Programme.
All benefits of the grant will already be part of the data outputs published as part of the spring revision of quarterly and annual national accounts for the years 2021-2024, which the office will publish on April 17, 2025 at 9 a.m. (according to the Release Calendar). The revision is planned in accordance with the Calendar of Revisions for 2025.
The grant results were also reflected in the structure of general government expenditures, which affect the value of the public deficit of the Slovak Republic. The Statistical Office of the Slovak Republic will publish the first estimate on the deficit and debt for 2024, as well as revisions for the three previous years, also on Thursday, April 17, at 9 a.m. (according to the Release Calendar).
