Implementation 1993 SNA in statistical practice of Azerbaijan

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Implementation 1993 SNA in statistical practice
of Azerbaijan
The State Statistical Committee of the Republic
of Azerbaijan

Sabina GuliyevaSenior Adviser of National
Accounts Statistics Department
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Pre-conditions of introduction SNA

• The socio-economic transformations occurring in
  the
• country and transition to market economy
• Integration of Azerbaijan to the world
  association
• Necessity of transition of all statistics to
  the world
• standards and provision of comparability
  indicators of
• statistics at the international level
• Necessity of creation of qualitatively new
  system of the
• macroeconomic indicators, gives opportunity
  to make
• deeper and complex analysis at economic
  situation

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Preparation to introduction SNA

Transition from tables and indicators of
Balance of National Economy to indicators of
System of National Accounts began in first half
90th years in close cooperation and with
technical help ?ECD.
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Actions for provision of introduction SNA

• Improvement existing and elaboration of new
  forms of
• the reporting
• Improvement of the base of information
• Creation of the register of the enterprises
  adequate to the
• international standards
• Introduction of the international classifiers
• Experimental calculations of GDP created
  conditions for
• elaboration indicator of GDP which is one of
  basic units
• of SNA

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Current position

• National accounts are making up
• for 5 institutional sectors
• Non-financial corporations
• Financial corporations
• General government
• Households
• Non-commercial (public) organizations served for
• households (NPISH)
• Making accounts SNA are conducted in according
  with concepts and definitions of System of
  National Accounts of the United Nations 1993
  (1993 SNA).

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Current position (financial account)

Construction of the financial account is general
recommendation of 1993 SNA and is necessary in
the future. The financial account should provide
the account of change of the financial actives
belonging to the enterprises, financial
corporations, households,
non-commercial organizations. For
example, it is necessary to have the information
on financial actives of the religious
organizations. The financial account is
experimentally made for 2006.
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Financial account (continuation)

Works on improvement of information base are
conducted for this account. In conditions of
wide dissemination of non-observable economic
activity and commercial secret make it extremely
difficult. At least, it is necessary to have
wide access to the bank information, and it will
more coordinate with functions of the Central
Bank, than with functions of SSC. To solve this
problem, probably will be needed more time, than
represented at initial stage of work.
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Financial account (continuation)

At the end of the last year we start experimental
work on making of financial account SNA. And
later we conducted one time survey by technical
support of Eurostat on non-financial enterprises
for making of this account as results of 2007.
The data are collecting at the moment.
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Tables Input-Output

Taking into account that system of tables
input-output is the irreplaceable instrument for
the analysis of economic processes and management
of economy, the problem of making of these tables
always remained in our field of vision and in
conditions of stable-dynamical development of a
national economy begun in second half 90 the
decision to make accounting inter-branch balance
was accepted according to 2001.
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Tables Input-Output (continuation)

Major importance of making tables input-output -
that they define and create a basis for the deep
analysis of structure of a national economy,
inter-branch communications, and also structures
of production and expenditure of GDP.
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Regional accounts

• Since 2001 are conducted calculation of GRP
• indicator on several large regions of the
  country
• By the end of 2008 it is planned to receive
• estimations of GRP in all regions of the
  country
• with accounting of main principles 1993 SNA
• concerning to the unit of resident

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Quarterly national accounts

• Presence and the publication of quarterly
• national accounts is one of conditions of
• connection of the country to the Special
• standard of distribution of the data of IMF
• In SSC of Azerbaijan work above quarterly
• GDP on a discrete basis has been started in
• 2003 by technical support of IMF

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• Analytical basis
• SSC of Azerbaijan makes the annual and
  quarterly statistical data on national accounts,
  proceeding from concepts and the definitions
  recommended 1993 SNA.
• Definition
• GDP shows a total cost of the goods and the
  services made by all residents in territory of
  the country during the certain period, intending
  for final consumption, saving and import.
• Quarterly GDP calculated by methods of production
  and expenditure in current and constant prices
  (base year-2001)
• There are numbers of the data since 1998

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Systems of used classifications

• The national classifier of Kinds of economic
• activities (IFNT), based on NACE
• The budgetary Classification based on
• Classifications of government on functions,
• Classifications of income and expenditure

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• Scope of operations
• GDP includes all kinds of activity within the
  framework of sphere of production 1993 SNA,
  except the operations with the military goods.
• Unaccounted activity
• GDP includes finish counting on production of
  the
• goods and services by households and natural
  persons
• engaged in business activity, and also
  amendments on
• understating and misses of the data in
  official statistical
• accounting
• Finishes counting on criminal activity (the
  weapon,
• drugs, prostitution and etc.) in GDP are not
  included,
• because this sphere has insignificant scales
  from the
• economic point of view

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Time of registration

As a whole all operations are reflected on the
basis of a principle of adding according with
recommendations 1993 SNA. However, the data on
sector of the government are taking by a cash
method.
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Cost estimation

• Cost of market production is indicated in basis
  prices
• Output production for own consumption is
  estimated in
• equivalent market prices
• Transport extra charges, taxes from sales and
  excise taxes
• are included in estimation of intermediate
  consumption
• The VAT is included in estimation of
  intermediate
• consumption except of the part of the VAT
  which is
• subject to a deduction
• Total sums of cost of import and export are
  estimated on
• a basis of free on board (fob)

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Character of the reference data Method of
production

• The basic sources of the data are the regular
  quarterly reporting of
• large, average and small enterprises, the
  data on execution of the
• state budget, incomes and expenditure of
  Fund of Social protection,
• Oil Fund, Ministry Finance and other
  administrative data
• The basic volume of the information on
  manufacture of agricultural
• production and services turn out from sample
  surveys of farmer and
• peasant economy
• The share of intermediate consumption in output
  on corresponding
• kind of activity is accepted, while,
  identical for all quarters and
• average annual significance of share of
  intermediate consumption
• calculating for the previous year
• The reporting allowing shortly obtaining the
  data on intermediate
• consumption has already introduced
  separately for each quarter

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Method of expenditure

• The data on expenditure of GDP in current
  and constant prices are published in breakdown on
  the basic categories of expenditure
• Final consumption, separately on
• Households
• Government
• Non-commercial (public) organizations
• served for households (NPISH)
• Gross saving of the capital and change of
  stocks
• Export and import

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Method of expenditure (continuation)

• Final consumption of households are calculated
  on the
• data of households budgets surveys and retail
  trade (with
• correction on purchases of non-residents and
  purchases of
• the goods by the enterprises in a network of
  retail trade)
• Source of the information on consumption of
  government
• is the report on execution of the state
  budget of the
• Ministry of Finance
• Indicators of consumption NPISH are formed on
  the
• basis of reports of the corresponding
  organizations
• Indicators of saving are formed on data of
  regular
• quarterly and annual reporting of the
  enterprises
• The data on export and import - on indicators
  of the
• balance of payments

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Calculations in constant prices

• At calculation of dynamic numbers in average
• annual prices of base year, making units of
• GDP are extrapolated independently on each
• indicator with the help of consecutive
• multiplication of chain indexes of physical
• volume
• The method of unary deflation is used

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Method of production

• Output on agriculture is deflated by means of
  price index
• of agricultural production, and output on
  trade by means
• of consumer price index
• Output on industry, construction and transport
  is
• estimated in constant prices with using of
  indexes of
• physical volume corresponding branches
• For a deflation of non-market services - index
  on
• number of employees
• Net taxes are transforming in constant prices
  with using
• generalized deflator of the gross value added
  of taxable
• branches

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Method of expenditure

• Final consumption of households is deflated by
  means of
• consumer price index
• Consumption of the government and
  non-commercial
• organizations serving households is deflated
  by means of
• index on number of employees
• Export and import of the goods and services are
• estimated only in the current prices because
  of absence
• corresponding price index. At the moment work
  on index
• is conducting and it will be introduced by
  the end of 2008

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The data of quarterly GDP calculated by the
methods of production and expenditure started to
publish from the beginning of 2008.

The publication of the data of quarterly
GDP
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The international cooperation in the field of
National Accounts

In the field of elaboration and conducting
national accounts SSC of the Republic of
Azerbaijan actively cooperates with international
statistical institutes with such organizations,
as ?ECD, IMF, UNECE, Eurostat and with
statistical services of the countries CIS. These
contacts serve as a good basis for accumulation
of experience in this area and for the decision
of available problems.
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The publication of the data on SNA

The data on National Accounts are published in a
yearbook National Accounts of Azerbaijan and
in the annual collection Statistical Yearbook
of Azerbaijan and on website of SSC.
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Thank you for attention!