## unesca-1-presentation-eng ## Source details **Canonical URL:** [unesca-1-presentation-eng](https://www.imf.org/-/media/files/data/statistics/bmp7/events/unesca-1-presentation-eng.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bmp7/events/unesca-1-presentation-eng.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bmp7/events/unesca-1-presentation-eng.pdf.json) --- ### Rationale for updating the SNA/BPM standards - Drivers: Digitalization; financial innovation; globalization; increasing demand for data to address climate change. - Motivation: Tectonic shifts in the global economy and the 2008 global financial crisis highlighted data shortcomings and exposed limits in analytical usefulness of existing conceptual frameworks. - Response informed by global reviews including the G20 Data Gaps Initiative and the Stiglitz-Sen-Fitoussi Commission. - Aim: Ensure policymakers have access to data to help achieve financial stability and economic growth objectives. ### Key update themes and priority areas - Digitalization and Financial Innovation - Topics: Non-bank financial institutions; recording fintech and financial derivatives by type; recording crypto assets; macrofinancial surveillance, fintech, digital money. - Example indicator noted: Global market capitalization of crypto assets (In USD billions) — Source: Coin Dance. - Globalization - Topics: Global value chains; multinational enterprises; Special purpose entities (SPEs); global trade; international taxation; capital flows. - Example indicator noted: Global inward FDI position and SPEs (In USD billion and percent of FDI) — Source: IMF staff calculations based on the IMF SPE Database. - External Sustainability - Topics: Stock/flow reconciliation; valuation of unlisted equity; trade classified by currency; net international reserves; reinvested earnings (RIE). - Example indicator noted: Estimated current account impact when including RIE on portfolio investment (In percent of GDP; 5-year average) — Source: IMF, “External Sector Report,” 2018. - Wellbeing and Sustainability - Topics: Distributions of household income, consumption, saving, and wealth; unpaid household activities; environmental-economic accounting; inequality and inclusive growth; climate change. - Example indicator noted: Green bonds outstanding (In USD billions) — Source: IMF Climate Change Indicators Dashboard. - Informal Economy - Topics: Enhanced framework for measurement; incorporate unpaid household services; gender analysis; domestic revenue mobilization; inclusive growth. - Example indicator noted: Informal economy by region (In percent of GDP) — Source: Medina, Leandro and Friedrich Schneider, CESifo Working Paper No. 7981, 2019. ### Presentational and conceptual alignment - Greater attention to consistency with other standards (e.g., GFSM and MFSM, SEEA). - Historical evolution cited: SNA 1953; BPM1-2 (1948-1950); SNA 1968; BPM3-4 (1961-1977); SNA 1993; BPM5 (1993); SNA 2008; BPM6 (2009). - Emphasis on common concepts across statistical domains and on a common glossary of terms and definitions. ### Update process, governance, and stakeholder coordination - Research agenda executed via joint expert groups (Task Teams) with participation from GFS, MFS, SEEA, classification updates (ISIC, CPC), and users. - Decisions taken together by the AEG and the Committee; editors resolve disagreements. - Coordinated drafting of annotated outlines (AOs) for new or substantially revised chapters; AOs circulated for global consultation. - Four joint SNA/BPM chapters and common text for general principles in other chapters. - BPM7 / 2025 SNA coordination: BPM / SNA Task Teams, Joint Task Teams, SEEA, GFS, and MFS communities; global consultation of compilers and users; testing; holistic review of priorities. - Worldwide participation: 176 economies have participated in at least one global consultation. ### Update timeline (selected milestones and process steps) - Mar 2020: BOPCOM: Endorse annotated outline; UNSC: Launch update process. - 2020 - 2023: UNSC: Adopt recommendations; Draft BPM7. - 2023 - 2024: Draft BPM7; BOPCOM: Agree on BPM7. - Oct 2024Mar 2025: BOPCOM: Launch update process — Guidance notes; Country Consultations; Annotated Outline drafted. - Mar 2025: IMF Chief Statistician: Approve BPM7; AEG and ISWGNA: Approve 2025 SNA; UNSC: Adopt 2025 SNA. - Supporting steps across the timeline: Guidance notes, country consultations, recommendations drafted, and testing. ### Implementation support and capacity building - Multipronged strategy: regional workshops; technical assistance and training; methodology handbooks and compilation guides; coordinated work among international organizations. - Tools: New digital platform for collaboration; compilers’ hub for sharing best practices; forum for interaction between compilers and users; peer-to-peer collaboration; transition to electronic publications. - Tailored approach: Tailor implementation to user needs and materiality. - Key ingredients to successful transition: - Engage in global consultations - Develop adoption process - Ensure sufficient resource allocation - Engage with reporters and users - Share tools, best practices, and resources ### Presentational updates in BPM7 / 2025 SNA chapters (selected technical points) - Chapter structure and valuation (BPM7 Chapter 3 / 2025 SNA Chapter 4: Flows, Stocks, and Accounting Rules) - Follow 2008 SNA chapter structure (Chapter 3: Accounting Principles). - Valuation: Stocks of debt securities at nominal value — supplement to existing market valuation. - Concessional lending: Never record a transfer element in the “central framework”, except for concessional loans provided by employers to employees. - Imports and exports of goods — no change to the current standard; observed transaction value conceptually preferred (to be introduced in the next version of the manuals subject to further testing). - Transactions and time of recording - Partitioning of assets/transactions with examples (household use of car for production; travel packages and tours). - Time of recording of redistributive transactions: Do not record fines/penalties until the issuer has an “unconditional claim to the funds”; when appeal is possible an unconditional claim exists “when the appeal is resolved”. - Economic ownership - Clarifications for natural resources, biological resources, renewable energy resources, and Intellectual Property Products (IPPs). - Previously produced IPP treatment depends on arrangement; guidance includes a decision tree from the UNECE Guide to Measuring Global Production. - Clarifications on provisions: financial asset related; nonfinancial asset related; unrelated to asset ownership. - Chapter structure and sectoring (BPM7 Chapter 4 / 2025 SNA Chapter 5: Residence, Institutional Units, and Sectors) - 2025 SNA sectoring updates include: - Nonfinancial corporations (S11) breakdown by domestically controlled (S11DO) and foreign controlled (S11003), with subcategories for public, national private, and SPEs where applicable. - Financial corporations (S12) updated breakdown and subsectors (S12DO, S12001, S12002, S12003), with “Of which: SPEs” categories. - Households sector: subsectoring according to levels of income and wealth and other criteria. - BPM7 sectoring examples: Central bank/Monetary authorities; Deposit-taking corporations (Of which SPEs); General government; Other financial corporations (MMFs, non-MMF investment funds, insurance corporations, pension funds, other financial intermediaries — Of which: Central clearing counterparties; Captive financial institutions and money lenders; Of which SPEs); Nonfinancial corporations (Of which SPEs); Households and NPISHs. - Special Purpose Entities (SPEs) - Use term SPEs only for entities with direct and indirect foreign control. - Special purpose units of general government classified to general government sector. - Non-resident SPEs treated as separate units — introduce enhanced imputations to better reflect fiscal operations of government-controlled SPEs. - Captive financial institutions wholly owned and controlled solely by resident parent entities are not considered SPEs. - Resident-controlled affiliates referred to by typology (conduits, captives, etc.) — not classified as SPEs. - Units and control - Guidance on head offices (HO) and holding companies (HC), including criteria for when an HO/HC is a separate institutional unit. - Distinguish HC from HO; ownership and control criteria consistent with BPM (e.g., subsidiary if parent holds more than 50 percent of voting power). ### Globalization thematic chapter (new thematic chapter) - Purpose: Increase visibility of globalization-related measurement issues by bringing cross-cutting information together. - Definition: Globalization = economic integration of economies; producers achieve efficiencies by outsourcing parts of the production process (fragmentation). - Challenge: Traditional macroeconomic statistics based on residence and economic presence. - Solution: Supplementary presentations to provide alternative views or additional details complementing traditional macroeconomic statistics. - Global production arrangements and recording guidance: - Re-exports: Show as supplementary item when significant. - Merchanting: Record net export of goods under merchanting (do not record imports and exports which would inflate trade data). - Processing: Record transactions in goods and services; merchandise transactions of principal may be shown as supplementary sub-item of general merchandise. - Factoryless goods production: Record transactions in goods; merchandise transactions of principal may be shown as supplementary sub-item of general merchandise. - MNE groups: Address SPEs, typologies for identifying SPEs and allocating institutional sector, and economic ownership of IPPs using a decision tree. - Measurement challenges: Allocation of production across economies; distorted transfer pricing; cross-border mobility of corporate assets and IPPs; large impact of IPPs on macro indicators such as GDP. - Supplementary statistics and analytical tools: - Supplementary statistics: GNI/NNI; Activities of Multinational Enterprises (AMNE); supplementary direct investment statistics (ultimate investing economy; ultimate host economy). - Analytical tools: TiVA; Global value chain thematic account (GVC-specific supply and use tables); extended supply and use tables (eSUTs). ### Digitalization thematic chapter (Chapter 22 / BPM7 Chapter 16) - Motivation: New chapter to capture digitalization’s impact on production, consumption, investment, trade, processes, finance, communication, and cross-border transactions; provide guidelines to measure digital products and assets within SNA/BPM conceptual framework. - Chapter content outline: - A. Digital Goods and Services: Cloud computing; Data assets; Artificial intelligence; Nonfungible tokens. - B. Digital Platforms: Nonfinancial digital intermediary platforms (DIPs); Free digital platforms and free digital products (including user-generated content, free software); Increasing visibility of free digital platforms and products. - C. Digitalization and the Financial System: New financial services and means of payment enabled by digitalization; Financial digital intermediation platforms; Digital assets, including fungible crypto assets. - D. Measuring Prices and Volumes: Quality change in ICT goods and ICT components; Software and data; Cloud computing; Internet and telecommunications services; E-commerce and digital intermediation platforms; Free digital products. - E. Analytical Tools: Thematic account on the digital economy; Digital Supply and Use Tables; Extended accounts to increase visibility of free services of digital platforms consumed by households. - Definition example: Digital products described as computing, data storage, software, and related IT services accessed remotely over a network, supplied on demand and with measured resource usage. ### Cloud computing, data, AI, NFTs, and digital platforms (selected technical points) - Cloud computing service classes: - "Infrastructure-as-a-service (IaaS) - access to hardware" - "Platform-as-a-service (PaaS) - access to a software platform" - "Software-as-a-service (SaaS) - access to the application software" - "Business process as a service (BPaaS) - specialized software used to automate common business functions or tasks" - Data as an intangible asset: - "Data has become an important type of produced intangible asset." - "Data that is expected to be used in production for more than one year is conceptually a fixed asset (IPP)." - Valuation via sum-of-costs in 2025 SNA (see Chapter 6 highlights). - Artificial intelligence (AI): - AI classified as special type of software within IPP “Computer Software, including Artificial Intelligence Systems”; separate reporting of AI encouraged as an “of which” item. - Non-fungible tokens (NFTs): - NFTs are digital records on a blockchain associated with a digital or physical asset but distinct from that asset. - Classification by rights conveyed: - (1) NFTs that convey no ownership rights (SNA Consumption) ; (BOP-computer and information services) - (2) NFTs that convey limited ownership rights Non-produced, nonfinancial assets: contracts, leases and licenses - (3) NFTs that convey full ownership rights purchase of the underlying asset (digital or physical). - BOP note: digital--(goods or computer services). - Digital platforms and intermediation: - Operators facilitate interactions between two or more distinct but interdependent sets of users. - Three platform types: (a) Nonfinancial DIPs; (b) Free digital platforms; (c) Financial digital intermediation platforms. - Nonfinancial DIPs: output consists only of digital intermediation services, recompensed through fee or commission; rerouting may be needed to include direct sale by producers using the platform. ### Digital trade, free digital products, and measurement challenges - Definitions: - Digital trade comprises all international trade that is digitally ordered and/or digitally delivered. - Digitally ordered trade aligns with 2009 OECD definition of e-commerce but focusing on international transactions. - Both goods and services can be digitally ordered; only services can be digitally delivered. - Free digital products - Challenge: Commercial enterprises supplying free products have zero observed price; SNA treatment values outputs of market producers by their price, which is zero for free products. - Inclusion: Free products are included in GDP implicitly as part of prices of other products they help sell or bundle; extended accounts can present households’ consumption of free services of advertiser-funded digital platforms as expanded measures of household final consumption expenditures and output. - Business models: Freemium strategies; multi-sided pricing; user-generated content mostly outside SNA production boundary unless monetary remuneration received. - Free software: Often cross-border; open-source corporate development usually funded via complementary services; unpaid individual development outside production boundary. ### Digitalization in the financial system and digital assets - New digital financial services fall within existing product and asset categories. - Examples: Financial digital intermediation platforms; Crypto currency exchanges; InsurTech; Neobanks; Emoney issuers; Online only FX bureaus and money transfer operators. - Financial digital intermediation platforms: Provide matching services; classified as financial auxiliaries (S126); receive fees or commissions. - Digital assets: - Digital assets are representations of value recorded on cryptographically secured distributed ledgers or similar technology; include crypto assets and CBDCs. - Crypto assets with a corresponding liability = Financial assets. - Crypto assets without corresponding liability = Nonproduced nonfinancial assets. ### Measuring prices and volumes of digitalized products - Measurement focus: Prices and volumes present main challenges rather than output at current prices. - Recommended methods: - Hedonic regression models to adjust for quality changes. - Option pricing methods for quality adjustments. - Matched models adjusted to account for substantially improved quality at similar prices. - Product-specific guidance: - ICT goods and ICT components: Hedonic regression methods or option price method; cost of production of new features may adjust price index. - Internet and telecommunications services: Use contract/product samples; construct volume indexes from physical indicators such as data usage. - Software and data: Use deflator for investment in IT products or related product price index. - E-commerce and digital intermediation: Deflators must represent prices from e-commerce outlets; monthly unit values often more suitable. - Cloud computing: Use a sample of representative products from each class (IaaS, PaaS, SaaS) to estimate a deflator; combine physical indicators of volume with revenue-share weights. ### Analytical tools to increase visibility of digitalization - Digital Supply and Use Tables (Digital SUTs) and thematic accounts: - Purpose: Increase visibility of activities, products and transactions affected by digitalization that are subsumed in broader aggregates. - Digital SUTs analyze digitalization along three dimensions: type of transaction; type of product; type of industry. - Thematic account communicates key information from Digital SUTs; prioritize items most important for understanding domestic economy structure and uses of digital products. - Extended accounts can present household consumption of free services in expanded measures of household final consumption expenditures and output. ### Communication, dissemination, and statistical governance - Strategy elements: - Clear, understandable, headline message; clearly described, non-technical statistical messages; accompanying methodological documents describing sources & methods; policy-driven communication; transparent dissemination; multi-channel dissemination and wide user access. - Communication with suppliers: - Use language suppliers can readily understand; use appropriate definitions in line with standards and adjust to relevant situations. - Statistical confidentiality: - Legal constraints on dissemination of identifiable business or household data; apply confidentiality policies, anonymization techniques and disclosure checking procedures to maximize dissemination while ensuring confidentiality. - Alignment framework: - Tool for self-assessment and for users to assess whether countries have implemented standards consistently. - Structured around Concepts; Accounting Rules; Methods; Classifications. - Taxonomies and metadata guidance: Quality; Timeliness; Frequency; Reference Period; document Change in Methods; Changes to Source Data; Change of Presentation; Coverage Adjustments. - Emphasis on net measures (e.g., GNI) as better measures of economic welfare. - Guidance priorities: Improve estimation of consumption of fixed capital and measures of natural resource depletion; expand accessibility and practical guidance on capital measurement. ### BPM7 structure, chapters, and annexes (selected highlights) - BPM7 Table of Contents = 20 Chapters. - New chapters: Chapter 15 Globalization; Chapter 16 Digitalization; Chapter 17 Islamic Finance; Chapter 18 Informal Activities; Chapter 20 Communicating the Accounts. - BPM7 Annexes = 14 Annexes (expanded from BPM6’s 9 Appendices). - New Annexes include: Annex 5 Selected Issues on Cross-Border Trade; Annex 7 Selected Financial Issues; Annex 10 Sustainable Finance in External Sector Statistics; Annex 11 Data by Partner Economy. - Chapter 10 (Goods) separated from Chapter 11 (Services) in BPM7. - Chapter 10: Emphasis on reconciliation between merchandise trade source data and total goods on a balance of payments basis; new treatments for inverse merchanting and factoryless goods production (FGP); FOB valuation maintained. - Chapter 11: Services Account updated to better align BOP services classification with CPC; includes cloud computing services and data and databases; clarifies IPP transactions; manufacturing services on physical inputs owned by others defined in Chapter 11 with related goods movements discussed in Chapter 10. ### Data by partner economy, DI presentation, SPEs, fintech, crypto, and sustainable finance - Data by partner economy publication encouraged for Goods; Services; Direct investment; Remittances. - Direct investment presentation: - De-emphasizes breakdown by investment relationship in favor of sectoral breakdown aligned with other functional categories. - Direct investment standard components by residential sector listed (Central Bank; Deposit-taking corporations, except the central bank; General government; Other sectors; Other financial corporations; Nonfinancial corporations; Households and NPISHs). - Memo/supplementary items retained with exact labels (e.g., (m.) Direct investment in direct investment enterprises). - SPEs: - BPM7 recommends a separate "of which" identification of SPEs within institutional sector accounts. - Consider nationality-based SPE statistics organized by location of entity that ultimately controls the SPEs rather than residency. - DI statistics: "look through SPEs to the first operating unit as a first step in presenting data ultimate host economy." - Fintech: - Introduce "of which" category for instruments or services classifications where necessary to separate out fintech-related instruments and services. - Crypto: - Record crypto assets without a counterpart liability designed to act as a general medium of exchange (e.g., Bitcoins) in a separate category in the capital account (new standard component). - Record crypto assets with a counterpart liability as a financial asset. - Functional category depends on nature of underlying claim. - Sustainable Finance: - New Annex 10: Sustainable Finance in External Sector Statistics. - Introduce separate table for Environmental Social and Governance (ESG) related "of which" categories of the IIP and BOP as part of Annex 14. - Aligned with DGI-3 Recommendation 4 for labelling, taxonomy, classification; DGI-3 objective: close data gaps on climate crisis, economic polarization, and digital transformation. ### From-Whom-To-Whom (FWTW), financial chapters, and accounting for wellbeing and sustainability - Chapter 27 emphasis: FWTW tables to display financial instruments for any sector over time, derived from sequence of SNA sector accounts. - FWTW tables highlight new issues of loans, debt securities, equity, and investment fund shares; balance sheet FWTW tables map stocks across institutional sectors. - Key data sources: counterpart data; security-by-security databases. - Uses: financial stability analysis; monetary transmission analysis; granular debtor-creditor mapping. - Financial chapters: 2025 SNA financial chapters expand sectoring, emphasize non-bank financial intermediation, and align with MFSM 2016. - New 2025 SNA Chapter 29: Financial corporations. - Chapter 25: Selected Issues on Financial Instruments (guarantees, derivatives, ESOs, provisions). - Chapter 37: FWTW tables and related financial analysis. - Wellbeing and sustainability accounting: - Encouraged extended/thematic accounts: labor account; digital economy thematic account; unpaid household service work; education and human capital. - Inclusion of unpaid household labor recommended at least every five years as an additional element in SUTs; valuation requires time-use data and appropriate wage rates. - Core 2025 SNA updates relevant for environmental and household accounting include recognition of renewable energy resources, split-asset approach, and recording depletion of natural resources as cost of production. *IMF Statistics Department – United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). SNA / BPM Joint Virtual Outreach Seminar, MARCH 26-27, 2024 (and related SNA/BPM update materials).* ### 3. Presentational updates (i.e., change in how the ### 3. Presentational updates (i.e., change in how the statistics are presented) ### Rationale for updating the SNA/BPM standards - Tectonic shifts in the global economy and the 2008 global financial crisis highlighted data shortcomings. - Drivers for updates: Digitalization, financial innovation, globalization, and increasing demand for data to address climate change. - Aim: Ensure policymakers have access to data to help them achieve financial stability and economic growth objectives. - The conceptual frameworks designed to be robust and resilient, but shortcomings in analytical usefulness were exposed by recent developments. - Responses informed by global reviews, including the G20 Data Gaps Initiative and the Stiglitz-Sen-Fitoussi Commission. ### Key update themes and priority areas - Digitalization and Financial Innovation - Non-bank financial institutions - Recording fintech and financial derivatives by type - Recording crypto assets - Macrofinancial surveillance, fintech, digital money - Selected update issue example: Global market capitalization of crypto assets (In USD billions) — Source: Coin Dance. - Globalization - Global value chains, multinational enterprises, Special purpose entities (SPEs), global trade, international taxation, capital flows - Selected update issue example: Global inward FDI position and SPEs (In USD billion and percent of FDI) — Source: IMF staff calculations based on the IMF SPE Database. - External Sustainability - Stock/flow reconciliation, valuation of unlisted equity, trade classified by currency, net international reserves, reinvested earnings (RIE) - Selected update issue example: Estimated current account impact when including RIE on portfolio investment (In percent of GDP; 5-year average) — Source: IMF, “External Sector Report,” 2018. - Wellbeing and Sustainability - Distributions of household income, consumption, saving, and wealth; unpaid household activities; environmental-economic accounting; inequality and inclusive growth; climate change - Selected update issue example: Green bonds outstanding (In USD billions) — Source: IMF Climate Change Indicators Dashboard (Refinitiv; Country authorities; IMF staff calculations). - Informal Economy - Develop an enhanced, consistent framework for measurement; incorporate unpaid household services; gender analysis; domestic revenue mobilization; inclusive growth - Selected update issue example: Informal economy by region (In percent of GDP) — Source: Medina, Leandro and Friedrich Schneider, “Shedding Light on the Shadow Economy: A Global Database and the Interaction with the Official One,” CESifo Working Paper No. 7981, 2019. ### Presentational and conceptual alignment - Greater attention to arrive at consistency with other standards (e.g., GFSM and MFSM, SEEA). - Historical evolution noted: SNA 1953; BPM1-2 (1948-1950); SNA 1968; BPM3-4 (1961-1977); SNA 1993; BPM5 (1993); SNA 2008; BPM6 (2009). - Update process emphasizes common concepts across statistical domains, and a common glossary of terms and definitions. ### Update process, governance, and stakeholder coordination - Research agenda executed via joint expert groups (Task Teams) with participation from GFS, MFS, SEEA, classification updates (ISIC, CPC), and users. - Decisions taken together by the AEG and the Committee, with editors playing a key role in disagreements. - Coordinated drafting of annotated outlines (AOs) for new or substantially revised chapters; AOs circulated for global consultation. - Four joint SNA/BPM chapters and common text for general principles in other chapters. - BPM7 / 2025 SNA coordination: BPM / SNA Task Teams, Joint Task Teams, SEEA, GFS, and MFS communities, global consultation of compilers and users, testing, and holistic review of priorities. - Worldwide participation: Thus far, 176 economies have participated in at least one global consultation. ### Update timeline (selected milestones and process steps) - Mar 2020: BOPCOM: Endorse annotated outline; UNSC: Launch update process. - 2020 - 2023: UNSC: Adopt recommendations; Draft BPM7. - 2023 - 2024: Draft BPM7; BOPCOM: Agree on BPM7. - Oct 2024Mar 2025: BOPCOM: Launch update process — Guidance notes; Country Consultations; Annotated Outline drafted. - Mar 2025: IMF Chief Statistician: Approve BPM7; AEG and ISWGNA: Approve 2025 SNA; UNSC: Adopt 2025 SNA. - Supporting steps across the timeline: Guidance notes, country consultations, recommendations drafted, and testing. ### Implementation support and capacity building - Multipronged strategy: regional workshops, technical assistance and training, methodology handbooks and compilation guides, coordinated work among international organizations. - New digital platform for collaboration and development of a compilers’ hub to facilitate sharing of best practices. - Forum for interaction between compilers and users and for peer-to-peer collaboration. - Transition to electronic publications. - Tailor implementation approach to user needs and materiality. - Key ingredients to successful transition: - Engage in global consultations - Develop adoption process - Ensure sufficient resource allocation - Engage with reporters and users - Share tools, best practices, and resources ### Presentational updates in BPM7 / 2025 SNA chapters (selected technical points) - Chapter structure and valuation (BPM7 Chapter 3 / 2025 SNA Chapter 4: Flows, Stocks, and Accounting Rules) - Follow 2008 SNA chapter structure (Chapter 3: Accounting Principles). - Valuation: Stocks of debt securities at nominal value — supplement to existing market valuation. - Concessional lending: Never record a transfer element in the “central framework”, except for concessional loans provided by employers to employees. - Imports and exports of goods — no change to the current standard; observed transaction value conceptually preferred (to be introduced in the next version of the manuals subject to further testing). - Transactions and time of recording - Partitioning of assets/transactions; examples include household use of car for production and travel packages and tours. - Time of recording of redistributive transactions: Do not record fine/penalty transactions until the unit issuing the fine has an “unconditional claim to the funds”; if a judgment or ruling is subject to further appeal, an unconditional claim exists “when the appeal is resolved”. - Economic ownership - Clarify economic ownership of natural resources, biological resources, renewable energy resources, and Intellectual Property Products (IPPs). - Previously produced IPP treatment depends on the underlying arrangement; guidance includes a decision tree from the UNECE Guide to Measuring Global Production. - Clarifications on provisions: financial asset related, nonfinancial asset related, and unrelated to asset ownership. - Chapter structure and sectoring (BPM7 Chapter 4 / 2025 SNA Chapter 5: Residence, Institutional Units, and Sectors) - 2025 SNA sectoring updates include: - Nonfinancial corporations (S11) breakdown by domestically controlled (S11DO) and foreign controlled (S11003), with subcategories for public, national private, and SPEs where applicable. - Financial corporations (S12) updated breakdown and subsectors (S12DO, S12001, S12002, S12003), with “Of which: SPEs” categories. - Households sector: subsectoring according to levels of income and wealth and other criteria. - BPM7 sectoring examples: Central bank/Monetary authorities; Deposit-taking corporations (Of which SPEs); General government; Other financial corporations (MMFs, non-MMF investment funds, insurance corporations, pension funds, other financial intermediaries — Of which: Central clearing counterparties; Captive financial institutions and money lenders; Of which SPEs); Nonfinancial corporations (Of which SPEs); Households and NPISHs. - Special Purpose Entities (SPEs) - Use the term SPEs only for entities with direct and indirect foreign control. - Special purpose units of general government are classified to the general government sector. - Non-resident SPEs are treated as separate units — introduce enhanced imputations to better reflect fiscal operations of government-controlled SPEs. - Captive financial institutions wholly owned and controlled solely by resident parent entities are not considered SPEs. - Resident-controlled affiliates should be referred to according to their typology (conduits, captives, etc.) — not classified as SPEs. - Units and control - Guidance on head offices (HO) and holding companies (HC), including criteria for when an HO/HC is a separate institutional unit. - Distinguish HC from HO; ownership and control criteria consistent with BPM (e.g., a corporation is a subsidiary if a parent holds more than 50 percent of voting power). --- ### Globalization thematic chapter (new thematic chapter) - Purpose: Bring together information that cuts across different chapters to increase visibility of globalization-related measurement issues. - Definition: Globalization refers to the economic integration of economies around the world; producers achieve efficiencies by outsourcing parts of the production process (fragmentation). - Challenge: Traditional macroeconomic statistics are based on residence and economic presence. - Solution: Supplementary presentations to provide alternative views or additional details that complement traditional macroeconomic statistics. - Global production arrangements described and recording guidance: - Re-exports: Goods produced in other economies previously imported and exported with no substantial transformation — show as supplementary item when significant. - Merchanting: Purchase of goods by a resident from a nonresident and subsequent resale to another nonresident without goods crossing compiling economy — record net export of goods under merchanting (do not record imports and exports which would inflate trade data). - Processing: Principal owns material inputs and purchases manufacturing services from a nonresident processor who does not take ownership of goods — record transactions in goods and services; merchandise transactions of the principal may be shown as a supplementary sub-item of general merchandise. - Factoryless goods production: Principal controls production through entrepreneurial steps and technical specifications but fully outsources material transformation; contractor takes ownership of material inputs — record transactions in goods; merchandise transactions of the principal may be shown as a supplementary sub-item of general merchandise. - Multinational enterprise (MNE) groups - Address the role of SPEs, typologies for identifying SPEs and allocating institutional sector, and economic ownership of IPPs using a decision tree. - Measurement challenges - Allocation of production to different economies; distorted transfer pricing; cross-border mobility of corporate assets and IPPs; large impact of IPPs on macro indicators like GDP; need to ensure consistency and coherence of MNE data and avoid duplication. - Supplementary data and analytical tools - Supplementary statistics: GNI/NNI, Activities of Multinational Enterprises (AMNE), supplementary direct investment statistics (ultimate investing economy; ultimate host economy). - Greater granularity in institutional sector accounts (breakdowns by domestic/foreign control, “Of which” SPEs, domestic control public vs private with “of which” MNEs). - Trade and investment income disaggregation by ownership, size-class, partner economy, product, and industry. - Analytical tools: Trade in Value Added Indicators (TiVA), Global value chain thematic account (GVC-specific supply and use tables), extended supply and use tables (eSUTs) for origin/destination granularity. ### Digitalization thematic chapter (Chapter 22 / BPM7 Chapter 16) - Motivation: New chapter to give visibility to digitalization’s impact on production, consumption, investment, trade, processes, finance, communication, and cross-border transactions; provide guidelines to measure digital products and assets within the SNA/BPM conceptual framework. - Chapter content outline: - A. Digital Goods and Services: Cloud computing; Data assets; Artificial intelligence; Nonfungible tokens. - B. Digital Platforms: Nonfinancial digital intermediary platforms (DIPs); Free digital platforms and free digital products (including user-generated content, free software); Increasing visibility of free digital platforms and products. - C. Digitalization and the Financial System: New financial services and means of payment enabled by digitalization; Financial digital intermediation platforms; Digital assets, including fungible crypto assets. - D. Measuring Prices and Volumes: Quality change in ICT goods and ICT components; Software and data; Cloud computing; Internet and telecommunications services; E-commerce and digital intermediation platforms; Free digital products. - E. Analytical Tools: Thematic account on the digital economy; Digital Supply and Use Tables; Extended accounts to increase visibility of free services of digital platforms consumed by households. - Definition example: Digital products described as computing, data storage, software, and related IT services accessed remotely over a network, supplied on demand and with measured resource usage. *IMF Statistics Department – United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). SNA / BPM Joint Virtual Outreach Seminar, MARCH 26-27, 2024 (and related SNA/BPM update materials).* ### 1. Infrastructure-as-a-service (IaaS) - access to hardware ### 1. Infrastructure-as-a-service (IaaS) - access to hardware ### Cloud computing and data as produced intangible assets - Cloud service classes: - "Infrastructure-as-a-service (IaaS) - access to hardware" - "Platform-as-a-service (PaaS) - access to a software platform" - "Software-as-a-service (SaaS) - access to the application software" - "Business process as a service (BPaaS) - specialized software used to automate common business functions or tasks" - Data as an intangible asset: - "Data has become an important type of produced intangible asset." - "Data as an asset means information content produced by accessing and observing phenomena and recording, organizing and storing information elements." - "These assets are produced when information on observable phenomena (OP) such as facts, behaviors, and characteristics are recorded, organized, and stored in digital format." - "Data that is expected to be used in production for more than one year is conceptually a fixed asset (IPP)." ### Digital products: AI, software, and NFTs - Artificial intelligence (AI): - "AI means capabilities of a computer program, or system controlled by a computer program, of recognition, reasoning, communication, and prediction that emulate human recognition, reasoning, and communication. AI programs may also be capable of learning." - "AI systems are distinguished as a special type of software within a class of intellectual property product identified as “Computer Software, including Artificial Intelligence Systems”, with the separate reporting of AI encouraged as an “of which” item." - Non-fungible tokens (NFTs): - "Digital records hosted on a blockchain that are associated with a digital or physical asset or product but that are distinct from that asset or product. NFTs certify ownership of rights to use and benefit from the asset and may also serve to certify the asset’s authenticity." - Classification by rights conveyed: - "(1) NFTs that convey no ownership rights (SNA Consumption) ; (BOP-computer and information services)" - "(2) NFTs that convey limited ownership rights Non-produced, nonfinancial assets: contracts, leases and licenses" - "(3) NFTs that convey full ownership rights purchase of the underlying asset (digital or physical)." - ">>> For the BOP: digital--(goods or computer services)" ### Digital platforms and intermediation - Definition and roles: - "Operators of digital platforms are service providers that facilitate interactions via the internet between two or more distinct but interdependent sets of users (either firms or individuals)." - "Digitally-enabled services of matching producers with consumers or funders with borrowers are known as digital intermediation." - Three types of digital platforms: - "a) Nonfinancial digital intermediation platforms (DIPs) facilitate transactions between buyers and sellers for the ordering and delivery of goods and services for a fee or commission, without taking ownership of the goods or rendering the services that are intermediated." - "b) Free digital platforms facilitate non-commercial interactions between users or provide entertainment and information services and are usually funded by advertising and the collection of data on their users." - "c) Financial digital intermediation platforms mediate funding or payment transactions." - Nonfinancial DIPs: - "The output of the DIP consists only of the digital intermediation services, which are recompensed through a fee or commission." - "A rerouting is needed to include a direct sale of the output of the producers using the platform to the buyers using the platform and a purchase by those producers of intermediation services supplied by the platform." ### Digital trade - Definitions and scope: - "International trade in goods and services includes digital trade." - "Digital trade comprises all international trade that is digitally ordered and/or digitally delivered." - "Digitally ordered trade is aligned with the 2009 OECD definition of e-commerce but focusing only on international transactions in goods and services." - "Both goods and services can be digitally ordered whereas only services can be digitally delivered." - "Digital trade is often facilitated by a digital intermediation platform (online marketplace) that charges a fee for the intermediation service." ### Free digital platforms and free digital products: measurement and inclusion - Measurement and valuation challenges: - "Digitalization has been marked by the emergence of free digital platforms as part of daily life and a general expansion in the availability of free digital products." - "The SNA framework values the free outputs of nonmarket producers such as nonprofit institutions funded by donations by the cost of production. However, this approach does not apply to free digital products in general because many are supplied by a commercial enterprise." - "The outputs of commercial enterprises are valued by their price, which is zero in the case of a free product." - "Free products supplied by market producers are included in GDP as part of the price of other products they help sell or with which they are bundled either directly or indirectly." - "Taken together, the items in the bundle generate at least enough revenue to cover the operating costs of the supplier of the free product, so the overall output of the supplier of the free digital product is not undermeasured." - Business models and user-generated content: - "Suppliers of digital products frequently adopt a “freemium” pricing strategy, in which a free basic version of the product promotes sales of upgrades or a premium version of the product." - "Most free platforms are commercial enterprises funded by advertising and monetizing user data." - "Multi-sided commercial platforms often charge a price for their services to the users on one side of the platform and supply free services to the users on the other side of the platform, to attract and retain these users." - "Users of free platforms frequently create user-generated content such as videos, articles, photos, etc. both for leisure activity and commercial purposes." - "Creating content for leisure is outside the SNA production boundary. Unless the creator receives remuneration, user-generated content is assumed to have been created for leisure purposes." - "Households that receive monetary remuneration for their uploaded content can be considered unincorporated household enterprises supplying services. If the purchaser is a non-resident, these services should be included in exports of services." - Free software and cross-border flows: - "Free software products are often used by households for final consumption, or in production. Copies of free software are frequently supplied across borders." - "App stores are a type of DIP where the service that is intermediated is often free. Free and subsidized apps used by households may be funded by advertising, data monetization, or other services whose use they facilitate." - "Open-source software developed by corporations is usually funded through sale of complementary services, such as training and support, or by other products it helps sell." - "Free software developed by individuals working independently (unpaid production) is outside the SNA production boundary." ### Digitalization in the financial system and digital assets - New digital financial services and providers: - "The new digital financial services fall within existing categories of products, and the new digital payment mechanisms fall within existing asset categories." - Examples: "Financial digital intermediation platforms, Crypto currency exchanges, Digital providers of insurance services (InsurTech), Digital banking platforms operating solely online (neobanks), Emoney issuers, and Online only foreign exchange bureaus and money transfer operators." - Financial digital intermediation platforms: - "Provide matching services and facilitate financial transactions between suppliers of funds and users of funds." - "They receive fees or commissions for their services and are classified as financial auxiliaries (S126)." - Digital assets classification: - "Digital assets are digital representations of value recorded on a cryptographically secured distributed ledger or using a similar technology." - "Include crypto assets and CBDCs, which may be designed as crypto assets, but which do not necessarily use crypto asset technology." - "Crypto assets are digital representations of value that use cryptography and distributed ledger technology (DLT) such as blockchains to enable parties to transact directly with each other without the need for a trusted intermediary." - "Crypto assets with a corresponding liability = Financial assets" - "Crypto assets without corresponding liability = Nonproduced nonfinancial assets." ### Measuring prices and volumes of digitalized products - Main measurement challenges: - "Many measurement challenges arising from digitalization involve prices and volumes rather than the output at current prices." - "Price and volume measurement challenges are particularly common for products affected by digitalization because price change is straightforward to measure only when the products and their characteristics remain static." - "To capture the price and volume impact of quality changes in digital products, the prices of new models must be adjusted for the value of their quality difference from the models they replace." - "The commonly used “matched models” should be adjusted by introducing models of products benefiting from advances in digital technology that often offer substantially improved quality at about the same price as the model they replaced." - "Hedonic regression models relating the price to the product’s characteristics are a recommended method for adjusting prices for quality change." - "Another technique used to adjust the price of a digital good for a quality change is options pricing, which averages observations on the differences in the price of the item caused by a characteristic offered as an option." - Product-specific guidance and indicators: - ICT goods and goods with ICT components: use "Hedonic regression methods or the option price method. Cost of production of a new product feature may be used to adjust the product’s price index for the quality change." - Internet and telecommunications services: "Samples of contracts, products and carriers must be kept up to date and prices must be adjusted for quality changes. Volume indexes constructed from physical indicators such as data usage to capture the volume growth of consumption and production of internet and telecommunications services." - Software and data: "Deflator for investment in IT products or price index of a related product, such as standardized software products sold by software publishers." - E-commerce and digital intermediation platforms: "Deflators for household final consumption expenditures on items sold online must adequately represent prices from e-commerce outlets and suppliers, and from suppliers selling on digital platforms. The high frequency of changes in online prices will often make a monthly unit value a more suitable measure of the price from an online supplier." - Cloud computing: "A sample of stable, representative products from each product class (IaaS, PaaS and SaaS) to estimate a deflator for cloud computing output. Physical indicators of the volume of services produced may be combined using weights based on revenue shares to construct a volume index." ### Analytical tools to increase visibility of digitalization - Digital Supply and Use Tables (Digital SUTs) and thematic accounts: - "The main purpose of the thematic account and the accompanying Digital SUTs is to increase the visibility of activities, products and transactions affected by digitalization that are subsumed in broader aggregates in the standard classifications of the national accounts." - "A thematic account can communicate the key information from the digital SUTs in a convenient and effective format. In this account the items that are most important for understanding the structure of the domestic economy and its uses of digital products should be prioritized." - "Digital SUTs analyze the impact of digitalization on the economy along three dimensions: type of transaction, type of product, and type industry." - "The Digital SUTs start with the conventional SUTs and add rows on digital transactions and products and columns on new digital industries." - "Extended accounts are a flexible tool for presenting concepts that extend SNA boundaries, including expanded measures of economic activity and household final consumption expenditures that extend the production boundary." - "Households’ consumption of the free services of advertiser-funded digital platforms can be included in an extended account as part of expanded measures of household final consumption expenditures and output." ### Communication, dissemination, and statistical governance - Communication and dissemination strategy elements: - "Clear, understandable, headline message" - "Clearly described, non-technical statistical messages" - "Accompanying methodological documents describing sources & methods" - "Policy-driven communication" - "Transparent dissemination" - "Multi-channel dissemination and wide user access" - Communication with suppliers: - "Official statistics producers need to communicate effectively with data suppliers to effectively to produce macroeconomic statistics. This includes: Use of language that suppliers can readily understand; Use of appropriate definitions in line with the standards – which can be adjusted to meet the relevant situations." - Statistical confidentiality: - "By law, most official statistics producers collect data from businesses and households for statistical purposes only and often under some legislation." - "These cannot be disseminated, sold, or otherwise published in a way that allows identification of the business or household." - "Appropriate data confidentiality policies, anonymization techniques and disclosure checking procedures should always be part of the process before publication of any data." - "The goal of confidentiality policies should be to maximize the dissemination of information as a public good for the wide range of users while still ensuring confidentiality obligations are met." - Frameworks and taxonomies: - "The alignment framework provides a tool that: Statistical producers can use to self-assess their macroeconomic statistics. Users can assess whether countries are on the same basis and have implemented these standards consistently. The results are readily available in an easily digestible format." - "The framework is structured around the key building blocks: Concepts; Accounting Rules; Methods; Classifications." - Taxonomies and metadata guidance: include "Quality; Timeliness; Frequency; Reference Period" and should document "Change in Methods; Changes to Source Data; Change of Presentation; Coverage Adjustments." - Prominence of net measures and user-friendly terminology: - "Encourages the focus on net measures (e.g. GNI) as a better measure of economic welfare." - "Examines challenges of net measurement; and support the need for higher quality and reliable net estimates and recommends steps on the way forward." - Guidance priorities: "Improving the estimation of consumption of fixed capital and measures of natural resource depletion (additional guidance being developed on ). Expanding accessibility and practical guidance on capital measurement to a wider range of countries." - Objectives for terminology: "Ensure harmonized definitions across the economic accounting statistical standards primarily for producers. Single, harmonized Common Glossary of Macroeconomic Statistics covering the economic accounting statistical standards. User friendly terms for communicating with users. User friendly explanation of terms." *United Nations Economic Commission for Europe – IMF Statistics Department, SNA / BPM Joint Virtual Outreach Seminar, MARCH 6 -7, 2024.* ### Chapter 1. Introduction ### Chapter 1. Introduction ### BPM7 structure and editorial changes - BPM7 Table of Contents = 20 Chapters. - Updates: "Update chapter titles (content)"; "Separate chapters"; "Rename chapter titles (change of concepts)"; "Include new chapters (15-18, and 20)". - Chapters in BPM7 (I): Chapter 1. Introduction; Chapter 2. Overview of the Integrated Framework; Chapter 3. Flows, Stocks, and Accounting Rules (joint BPM/SNA chapter); Chapter 4. Residence, Institutional Units, and Sectors (joint BPM/SNA chapter); Chapter 5. Classifications of Financial Assets and Liabilities; Chapter 6. Functional Categories in International Accounts; Chapter 7. Balance Sheet: The International Investment Position; Chapter 8. Financial Account; Chapter 9. Other Changes in Financial Assets and Liabilities Account; Chapter 10. Goods Account (separated from services in BPM7). - Chapters in BPM7 (II): Chapter 11. Services Account (separated from goods in BPM7); Chapter 12. Earned Income Account (instead of primary income account); Chapter 13. Transfer Income Account (instead of secondary income account); Chapter 14. Capital Account; Chapter 15. Globalization (new joint BPM/SNA chapter); Chapter 16. Digitalization (new joint BPM/SNA chapter); Chapter 17. Islamic Finance (new joint BPM/SNA chapter); Chapter 18. Informal Activities (new joint BPM/SNA chapter); Chapter 19. Selected Issues in BOP/IIP Analysis; Chapter 20. Communicating the Accounts (new joint BPM/SNA chapter). ### Annexes: expansion and reorganization - BPM6 Table of Contents = 9 Appendices; BPM7 Table of Contents = 14 Annexes. - Changes noted: "Update chapter titles"; "Separate chapters"; "Removed chapter"; "Moved from 'annex/section' of chapters to be annexes themselves (separated annexes 6, 8 and 11)"; "Include new annexes (new annexes 5, 7, 10, and 11)"; "Very important Annex!". - Annexes in BPM7 (I): Annex 1. Exceptional Financing Transactions; Annex 2. Debt Reorganization and Related Transactions; Annex 3. Regional Arrangements; Annex 4. Remittances; Annex 5. Selected Issues on Cross-Border Trade (new annex); Annex 6. Selected Issues on Direct Investment (separated previously BPM6 Appendix 6a and expanded); Annex 7. Selected Financial Issues (new annex on financial derivatives and reverse transactions). - Annexes in BPM7 (II): Annex 8. Insurance and Pensions (separated previously BPM6 Appendix 6c); Annex 9. Positions and Transactions with the IMF (separated annex, previously in BPM6 Chapter 7, as an annex); Annex 10. Sustainable Finance in External Sector Statistics (new annex); Annex 11. Data by Partner Economy (separated annex, previously in BPM6 Chapter 4, as section F.2); Annex 12. Links between International Standards for Macroeconomic Statistics (expanded to include linkages beyond the national accounts); Annex 13. Changes from BPM6; Annex 14. Standard Components and Selected Other Items. ### Cross-cutting themes and seminar context - Event: IMF Statistics Department –UNESCAP SNA / BPM Joint Virtual Outreach Seminar MARCH 26-27, 2024. - Cross-cutting themes covered: Introduction; Sector breakdowns; Data by partner economy; Special Purpose Entities (SPEs); Other cross-cutting issues; Supplementary items. ### Guidance on compilation, standard items, and supplementary items - BPM7 provides flexibility for compilers to provide further information on selected topics for analytic value. - BPM7 includes some recommendations that are extensions from BPM6 within the core framework; some that extend beyond the core framework. - BPM7 guides on topics presented in new chapters and annexes (examples: informal activities (new Chapter 18) and data by partner economy (new Annex 11)) and references to supplementary items. - Compilers are encouraged to use guidance to fill important information gaps; compilers would choose topics based on their importance within the economy’s structure, key policy issues, and data availability. - Standard Items: - "Standard components are items that are fully part of the framework and contribute to the totals and balancing items." - "Memorandum items are part of the standard presentation but are not used in deriving totals and balancing items (e.g., interest before FISIM or implicit financial services)." - Supplementary Items: - "Items outside the standard presentation that are compiled depending on circumstances in the particular economy (e.g., total remittances and transfers to NIPISHs)." - "BPM7 will mostly introduce new supplementary items." - "New standard items are highlighted in blue throughout this presentation." ### Sector breakdowns and direct investment (DI) presentation changes - New standard components: Split nonfinancial corporations, households, and nonprofit institutions serving households into two separate standard components: Nonfinancial corporations; Households and nonprofit institutions serving households. - Breakdown of other financial corporations into: Money market funds (MMFs); Non-MMF investment funds; Insurance corporations; Pension funds; Other financial intermediaries (of which, central clearing counterparties); Captive financial institutions and money lenders, and financial auxiliaries. - Sectoral breakdown for DI: - De-emphasizes breakdown by investment relationship in favor of sectoral breakdown. - Aligns DI with other functional categories. - Applies to financial account transactions and IIP. - Direct investment standard components (Equity and investment fund shares) by residential sector: Central Bank; Deposit-taking corporations, except the central bank; General government; Other sectors; Other financial corporations; Nonfinancial corporations; Households and NPISHs. - Direct investment memorandum and supplementary items (exact labels retained): - Direct investment (m.) Direct investor in direct investment enterprises - (m.) Direct investment enterprises in direct investor (reverse inv.) - (m.) Between fellow enterprises - (s.) if ultimate controlling parent is resident - (s.) if ultimate controlling parent is nonresident - (s.) if ultimate controlling parent is unknown ### Data by partner economy: scope and challenges - BPM7 encourages compilers to publish data by partner economy for specific balance of payments components: Goods (with reference as before other sources such as IMTS); Services; Direct investment; Remittances (closely related to migration between two economies, and may often require estimations). - Supplementary data on DI based on the ultimate investing economy (UIE) and the ultimate host economy (UHE) as well as identification of pass-through funds. - Cases where data by partner economy may be challenging include: - Goods on consignment and economy of origin. - Merchanting and other Global manufacturing arrangements where the physical movement of the goods differs from the change of ownership. - Adjustments to bring source data that exhibits physical cross border flow of goods to a change of economic ownership basis may require adjustments to the partner economy. - Intermediation services and contracting. - Securities: transactor vs debtor for assets held; securities under reverse transactions (legal versus economic owner). ### Special Purpose Entities (SPEs) - BPM7 recommends a separate "of which" identification of SPEs within the institutional sector accounts. - Nationality-based SPE statistics: consider organizing according to the location of the entity that ultimately controls the SPEs rather than by the residency of the SPEs. - DI statistics: "look through SPEs to the first operating unit as a first step in presenting data ultimate host economy." - Treatment considerations: Intellectual Property Products (IPP) owned by SPEs. ### Fintech, crypto, and other cross-cutting issues - Fintech: "Introduce 'of which' category for instruments or services classifications where necessary to separate out fintech-related instruments and services." Example: activities classified as financial services or insurance services with a further "of which". - Crypto: - "Record crypto assets without a counterpart liability designed to act as a general medium of exchange (e.g., Bitcoins) in a separate category in the capital account. (new standard component)" - "Record crypto assets with a counterpart liability as a financial asset." - "The functional category would depend on the nature of the underlying claim." ### Supplementary presentations and sustainable finance - Supplementary presentation of trade and investment income: Goods trade by enterprise characteristics (TEC); Services trade by enterprise characteristics (STEC); Investment income by enterprise characteristics. These require data linkage with business register and are recommended in the context of globalization. Characteristics recommended: Industry; Ownership (domestic/foreign control); Firm size. - Supplementary Items - Presentation of trade: Currency Breakdowns: Total Goods by the currency of denomination; Total Services by the currency of denomination with options: Domestic / foreign; Domestic and SDR basket; Domestic, SDR basket and other currencies; An unallocated item can also be included to address currency allocation difficulties. - Supplementary Items - New: Sustainable Finance: - Geographical and industrial sector breakdowns of DI. - "Introduce a separate table for the Environmental Social and Governance (ESG) related 'of which' categories of the IIP and BOP as part of Annex 14 of the BPM7." - "International cooperation grants to low-income countries." - "Aligned with the work by the DGI-3 Recommendation 4 in terms of labelling, taxonomy, classification." - "The main objective of the DGI-3 is to close data gaps on several pressing policy challenges: the climate crisis, increasing economic polarization, and large-scale digital transformation." - "Countries are encouraged to compile data as relevant." ### Chapter 10 and Chapter 11 highlights (Goods and Services accounts) - Chapter 10 Goods Account: - BPM7 separates goods and services into Chapter 10 (Goods) and Chapter 11 (Services), replacing a single chapter in BPM6. - Follows the structure of BPM6 Ch 10: Goods (para 10.13 to 10.40). - Global manufacturing arrangements discussed in Chapter 10. - Emphasis on publishing Table 10.2, Reconciliation between merchandise trade source data and total goods on a balance of payments basis. - Note: "Crypto assets (CAW LM) no longer recommended to be classified in goods account." - Chapter 10 Table 10.1 overview: Exports / Revenue; Imports / Expenditure; General merchandise on a balance of payments basis; Of which: Re-exports; Of which: Goods traded within a global manufacturing arrangement; Net exports of goods under merchanting n.a.; Goods acquired under merchanting (negative exports) n.a.; Of which: Material Inputs acquired abroad from third parties by the principal within a global manufacturing arrangement n.a.; Goods sold under merchanting (exports) n.a.; Of which: Material Inputs sold to Contractor abroad within a global manufacturing arrangement n.a.; Nonmonetary gold; Total goods; Balance on trade in goods. - Chapter 10 General Merchandise additions and treatments: - New inclusions: Inverse merchanting; Trade of finished goods under a factoryless goods production (FGP) arrangement (new treatment). - FOB valuation for exports/imports will be maintained in BPM7. - "Valuation of imports and exports at the observed transaction value is conceptually preferred and, subject to further testing, could be introduced as the standard in the next version of the manuals." - Chapter 10 New Sections: Global manufacturing – Processing-type arrangements and factoryless goods production (FGP); Adjustments to source data; Providing information to users; Valuation; Diagrams; Decision tree distinguishing (traditional) merchandise trade; Re-exports; Processing arrangement; FGP arrangement. - Example of FGP: Principal in country A outsources manufacture to contractor in country C, principal provides design/knowhow (IPP), contractor sources inputs (e.g., from country B), contractor makes product, principal buys finished product from contractor and sells to country D — implications for IMTS, BOP goods, and BOP services and adjustments are described in the example. - Chapter 10 Table 10.2 (Reconciliation) emphasizes types of adjustments: Valuation adjustments (– CIF/FOB adjustment n.a.; ± High-value capital goods, if delivery differs from change of ownership); Adjustments arising from the change of economic ownership principle (± Goods lost or destroyed in transit; ± Goods changing ownership in customs warehouses or other special zones; - Migrants’ personal effects; - Returned goods; - Goods for repair or storage without change of ownership); Valuation adjustments and adjustments arising from change of economic ownership within merchanting or global manufacturing arrangements (+ Net exports of goods under merchanting n.a.; + Exports to and imports from a merchant in an economy of inverse merchanting; - Dispatches of goods from, or arrivals of goods to, either the economy of the principal or the economy of the processor without change of ownership in a processing arrangement; + Goods acquired from other economies for processing abroad, and goods sold abroad after processing, without the goods passing through the economy of the resident principal; + Acquisition and sale to other economies of finished goods by a factoryless goods producer without the goods passing through the economy of the factoryless goods producer; ± Adjustment to the contractor's valuation of exports of finished goods to a factoryless goods producer if different from IMTS valuation of dispatches to final buyer n.a.); Other conceptual adjustments (- Goods imported for construction projects by nonresident enterprises; + Goods changing ownership entering / leaving territory illegally; + Nonmonetary gold); "= Total goods on a balance of payments basis." - Types of adjustments summarized: Valuation adjustment; Arising from change of ownership (of which, within a global manufacturing arrangement); Other conceptual adjustments. - Chapter 11 Services Account: - Classification mainly product based, transactor based for travel, construction, and government goods and services n.i.e.—no change from BPM6. - Improves correspondence between BOP services classification and CPC. - Table 11.1 Overview of Services Account lists 17 main standard service categories: Manufacturing services on physical inputs owned by others; Maintenance and repair services n.i.e.; Transport; Travel; Construction; Insurance and Pension services; Financial services; Charges for the use of intellectual property n.i.e.; Telecommunication services; Computer and information services; Research and development services; Professional and management consulting services; Trade-related services; Operating leasing services; Technical and other business services; Personal, cultural and recreational services; Government goods and services n.i.e. - Changes from BPM6 include: Computer and information services—to include cloud computing services and data and databases (incl. data as an asset); Revised classification breakdowns (1.A.b.9 Telecommunications services; 1.A.b.10 Computer, and information services with subitems 1.A.b.10.1 Computer services; 1.A.b.10.2 Information services); 1.A.b.11 Research and development services; 1.A.b.12 Professional and management consulting services; 1.A.b.13 Trade-related services; 1.A.b.14 Operating leasing services; 1.A.b.15 Technical and other business services. - "Definition of intellectual property products (IPP) introduced"; "Clarification on outright sale/purchase and other transaction related to IPPs provided." - Manufacturing services on physical inputs owned by others that are part of a global manufacturing arrangement are also in Chapter 10; "The service element is defined in Chapter 11; and Supplementary recording of related goods movements discussed in Chapter 11." *IMF Statistics Department –UNESCAP: SNA / BPM Joint Virtual Outreach Seminar, MARCH 26-27, 2024.* ### Chapter 11 – Services ### Chapter 11 – Services ### Travel - Treatment of package tours clarified: defined as a basket of at least three major services. - Package tour components to be recorded separately: - The services themselves (for example, transport, accommodation). - The services provided by the tour operator. - The margin of the travel agency (usually different from the tour operator) selling the tour. - Clarification on health- and education-related travel: - Scope of “medical reasons” follows the definition of “health and medical care” from International Recommendations for Tourism Statistics (IRTS) 2008. - Travel expenses of patients’ companions to be included under “other personal travel.” - Treatment of companions of education-related travelers—classified as “other personal travel” for consistency with companions of traveling patients. - BPM7 ### Transport - CIF to FOB treatment clarified for insurance premiums and insurance services. - BPM7 ### Financial services and Insurance - Financial services provided by fintech (e.g., payment services/peer-to-peer lending services/other financial services such as capital raising/investment management enabled by fintech) are classified in the financial services—no new service categories introduced. - Margins on buying and selling transactions—further elaboration on the relevant concepts including practical challenges in compiling this item. - Hybrid insurance products are classified into life (financial account) or nonlife insurance (current transfers) depending on which features are predominant. - Insurance services through fintech (i.e., InsurTech) are covered under insurance and pension services. - BPM7 ### Intermediation services (including digital intermediation) - Reference to services merchanting in BPM6 (10.160) to be deleted. - Fee-based digital intermediation platform (DIP) services defined: intermediation services enabling transactions between multiple buyers and multiple sellers, without the intermediation platform taking economic ownership of the goods or rendering services that are being sold. - Fee for services intermediated by third party (including DIPs) — record under trade-related services. - BPM7 ### Personal, Cultural, and Recreational Services - Tele-health/tele-education are included under Other personal, cultural, and recreational services. - BPM7 ### Government goods and services n.i.e. - Additional specific products to be included under other services supplied by and to governments—along the lines of the CPC divisions 91 and 99. - BPM7 ### Construction services - Additional (supplementary) breakdown to separately identify Construction goods and Construction services. - BPM7 ### Cross-cutting note: Goods and services topics to be covered elsewhere - Chapter 15 - Globalization will cover MNEs and globalization, Trade by enterprise characteristics, and digital economy in more detail (Chapter 16 - Digitalization). - Informal trade covered in Chapter 18. - Annex 5 – Selected issues on cross-border trade will cover price and volume data, trade by invoice currency, and data by partner economy (also in Annex 11). - BPM7 *BPM7 — IMF | Statistics* ### Chapter 6. ### Chapter 6. Functional Categories ### Overview - Presentation delivered at the IMF Statistics Department – UNECE Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6-7, 2024. - Presenters: Pete Harper (SNA Update Project Manager) and Peter van de Ven (SNA Update Lead Editor). - Focus: main conceptual changes from the 2008 SNA to the 2025 SNA, recommendations for additional tables/data items, and selected financial chapters related to the update. ### Main conceptual changes affecting macro-economic indicators - Only a limited number of conceptual changes affect GDP/NDP, government deficit, and net worth. - Key items: - Recognition of data as produced assets. - Recognition of marketing assets as produced assets. - Renewable energy resources and adjustments in the treatment of biological resources. - Recording depletion of natural resources as a cost of production. - Split-asset approach for natural resources (no impact on GDP/NDP and net worth according to the presentation). - Improving consistency in the application of the sum-of-costs method. - Changes in the measurement of the output of central banks. - Other minor changes to the 2008 SNA (no impact on macro-economic indicators). ### Data as produced assets - 2008 SNA: Recognized databases as produced assets, but not the information content. - 2025 SNA: Also recognizes the information content of electronic data collected and used in production. - Valuation using the sum-of-costs method to include: - costs of planning, preparing and developing a data production strategy - costs associated with accessing, recording and storing information embedded in OPs, including explicit purchases of OPs and already produced data - costs associated with designing, organizing, testing and analyzing the data to draw information and conclusions - consumption of the fixed capital used, including return to capital - Change may have significant impact on GDP and net worth. ### Marketing assets - 2008 SNA: Marketing assets (and goodwill) recognized as non-produced non-financial assets; measurement limited to explicit purchases or implicit purchases when a corporation is purchased above net worth. - 2025 SNA: Recognizes marketing assets as produced assets, extending the asset and production boundary, including assets produced for own final use. - Valuation using the sum-of-costs method requires further research to delineate fixed capital expenditures from current expenditures. - Change may have significant impact on GDP and net worth. ### Renewable energy resources and biological resources - Explicit recognition of renewable energy resources (solar, wind, geo-thermal, etc.). - Three changes/clarifications to the 2008 SNA: - 2008 SNA included a discrete choice between cultivated and non-cultivated resources yielding once-only products; 2025 SNA differentiates between migrating resources (non-cultivated) and non-migrating resources (cultivated, on a continuum from intensely managed to totally undisturbed). - Regeneration of biological resources to be recorded as gross fixed capital formation; depletion treated as a cost of production (similar to mineral and energy resources). - Clarifications for the measurement of work-in-progress. - Minor impact on GDP; no impact on net worth (only shifts between non-produced and produced assets, and between work-in-progress and underlying assets). ### Recording depletion of natural resources as a cost of production - 2008 SNA: Depletion treated as other changes in the volume of assets. - 2025 SNA: Depletion recorded as a cost of production, similar to consumption of fixed capital. - Change will have an impact on NDP, especially in natural resource-rich countries. ### Split-asset approach for natural resources - 2008 SNA: Natural resources recorded in the accounts of the legal owner (typically government). - 2025 SNA: - Natural resources recorded in the accounts of the legal owner and extractor, according to the appropriation of the resource rents. - Accounting for depletion in line with SEEA Central Framework 2012 (allocation of depletion in line with appropriation, by adjusting rents paid by the extractor to the legal owner). - Changes in ownership recorded as other changes in the volume of assets. - No change to GDP/NDP and net worth; only reallocation of assets across sectors. ### Improving consistency of the sum-of-costs method - In absence of market prices, sum-of-costs used as approximation. - For market producers (output for own final use) the method traditionally includes: - Intermediate consumption - Compensation of employees - Consumption of fixed capital - Net return to fixed capital - Other taxes (less subsidies) on production - Four 2008 SNA issues: - For non-market producers, relevant output valued excluding return to fixed capital. - Return to capital excluded for non-financial assets other than fixed assets. - Uncertainty over inclusion/exclusion of payments for rent on land and natural resources. - Inclusion/exclusion of depletion in addition to consumption of fixed capital. - 2025 SNA changes: - All relevant output valued including a return to capital, thus also for non-market producers. - Inclusion of return to non-financial assets other than fixed assets, including inventories and non-produced non-financial assets (note: return to city parks and historical monuments excluded on pragmatic grounds). - Inclusion of rent as a cost element. - Inclusion, if relevant, of depletion of natural resources. - Change may have significant impact on GDP, and a more moderate impact on net worth. ### Changes in the measurement of the output of central banks - 2008 SNA: - Possibility of FISIM included. - Two types of services: monetary policy services (non-market output) and supervisory services (non-market or market depending on fees). - Non-market output allocated to government, with a concomitant current transfer. - 2025 SNA: - FISIM excluded on conceptual grounds. - Extension of services to include promoting financial stability and monitoring the payments system. - All output considered non-market output, with payments by financial corporations considered as current transfers. - Output recorded as output for own final use by the central bank. - Net effect: Change in GDP equals change in recording of transfers. ### Other minor conceptual changes - Treatment of reinvested earnings of FDI-enterprises limited to payments related to the sales of assets. - Extension of definition of rent to include non-produced non-financial assets other than natural resources. - Recording of work-in-progress for fixed assets partially transferred and for fixed assets produced for own final use. - Limitation of concessional loans to those provided by employers to employees. - All equity in international organizations to be considered as “other equity”. - Securities provided as collateral, not readily available for balance of payments financing needs, to be excluded from the cash borrower’s reserve assets; for gold swaps, this leads to demonetization of the gold bullion. ### Recommendations for additional tables and data items - Distinction between: - Sequence of economic accounts: standard recommended set. - Supplementary tables/items. - Extended/thematic accounts/tables. - Objective: maximize worldwide compilation of the sequence of economic accounts guided by the SNA. - Encouraged tables/accounts to depend on national and regional priorities. ### Accounting for well-being and sustainability - To improve analysis of distribution across households: - Standard breakdown of households by income and wealth decile. - More detailed labour accounts. - Supplementary household breakdowns (e.g., household composition, main source of income). - Extended/thematic accounts encouraged: - Unpaid household service work. - Education and human capital. - Health. ### Accounting for globalization - Standard breakdowns of corporations to improve visibility of globalization impacts: - Foreign-controlled corporations. - Public corporations. - National private corporations (including "Part of domestic MNEs"). - Encouraged supplementary items/tables: - Extended supply and use tables (eSUTs). - Data on Special Purpose Entities (SPEs) where important. ### Accounting for digitalization - Improve visibility of the digital economy by: - More detailed breakdowns within intellectual property products in the sequence of economic accounts. - Digital supply and use tables as extended/thematic tables, including extended accounting for “free” services (Facebook, Instagram, TikTok, etc.). - Further breakdowns of subsectors of financial corporations for Fintech-related activities where significant. ### Accounting for financial risks and vulnerabilities - Since the Great Financial Crisis, emphasis on: - Non-bank financial intermediation (shadow banking): supplementary tables with detailed breakdowns of financial corporations and additional instrument details. - Breakdowns of financial derivatives. - From-whom-to-whom (supplementary) tables (not included in consolidated list). ### Other supplementary items and tables - Concessional loans: supplementary data on concessional loans provided by government and international organizations. - Reinvested earnings: - Breakdown of FDI-related dividends into payments as defined for non-FDI corporations and other payments. - Supplementary data on recording reinvested earnings for all equity in corporations, direct investment as well as portfolio investment. - Valuation of debt securities at both market value and nominal value for liability positions. - Supplementary table on provisions, broken down into three categories: financial assets related, non-financial assets related, and provisions unrelated to assets. ### Next steps in the SNA update process - United Nations Statistical Commission 55th Session to be held on 27 February - 1 March 2024: the Report of the Intersecretariat Working Group on National Accounts will be presented for endorsement of recommendations for the update of the 2008 SNA. - Drafting of the 2025 SNA continues. - Initial focus on new and substantially revised chapters; these chapters subject to global consultation on a chapter-by-chapter basis. - Complete draft of the 2025 SNA to be circulated for global consultation in May-July 2024. - Chapters not new or substantially revised will be shown in ‘track changes’. - Significant program of work developing guidance materials to support implementation of the 2025 SNA. ### Financial chapters and selected issues (high level) - New 2025 SNA Chapter 29: Financial corporations - Incorporates parts of 2008 SNA Chapters 4 and 21, expands on Chapter 6, reviews financial sectors and subsectors, and emphasizes non-bank financial intermediaries and alignment with Monetary and Financial Statistics Manual (MFSM 2016). - Chapter on overview of financial corporations: - Discusses impact of technology innovations, integration of financial technology companies, “of which” supplementary items (aligned with SNA Chapter 22 on digitalization), residency and consolidation issues, and new “of which” breakdowns by control. - Financial corporations’ sectors and subsectors: - Provides detailed subsector analysis, definitions, subcomponents, source data, and national accounts’ considerations. - Non-Bank Financial Intermediation (NBFIs): - NBFIs comprise non-depository financial intermediaries. - Supplementary breakdowns include: insurance sector into life and non-life; pension funds into defined benefit and defined contribution schemes; MMFs into constant NAV MMFs and variable NAV MMFs and non-MMFs; central clearing counterparties included as part of other financial intermediaries. - Supplementary breakdowns for captive financial corporations and special purpose entities. - Link to Monetary and Financial Statistics: - SNA financial corporations’ sectors/subsectors tied to Monetary and Financial Statistics; replaces part of 2008 SNA Chapter 27; includes sectoring issues, sequence of accounts coverage and instrument classification differences. - 2025 SNA Chapter 25: Selected Issues on Financial Instruments - Covers treatment of standardized guarantees, expanded discussion of financial derivatives (exchange-traded and over the counter), employee stock options (ESOs classified as equity instruments under new derivative classification standards), loan provisions/write-offs/allowances, and the recording of flows associated with financial assets and liabilities. - 2025 SNA Chapter 37: From-Whom-To-Whom (FWTW) tables and related financial analysis - Related to the flow of funds section of the 2008 SNA and will be updated accordingly. *Presented by the IMF Statistics Department at the Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6-7, 2024.* ### Chapter 27. Emphasis will be on the from-whom-to-whom (FWTW) ### Chapter 27. Emphasis will be on the from-whom-to-whom (FWTW) ### Overview of SNA sector accounts table structures and derivation of FWTW tables - Focus: FWTW tables that display financial instruments for any given sector over time and the derivation of those tables from the sequence of SNA sector accounts. - Coverage includes: - Non-financial accounts, financial account, and balance sheets as part of the SNA sequence. - The non-financial accounts are a relatively new addition to FWTW tables but are closely linked to financial accounts and balance sheets and can provide additional sub-category details for relevant items. - Key data sources highlighted: - Counterpart data - Security-by-security databases ### From-whom-to-whom tables in the sequence of SNA accounts - Financial account FWTW tables: - Highlight details of new issues of loans, debt securities, equity, and investment fund shares. - Include borrowing via other instruments in relation to the acquisition of those assets. - Balance sheet FWTW tables: - Highlight stock inter-relationships across the institutional sectors of the economy. - Role in the SNA sequence: - Provide granular mapping of instruments and counterpart sectors across time to link flows (financial account) and stocks (balance sheets). ### Related financial analysis and macro-financial indicators - Analytical usefulness: - FWTW tables provide granular information to identify debtor-creditor relationships among institutional sectors. - Uses in risk and vulnerability assessment: - Summarize sectoral risks and vulnerabilities and mechanisms for transmission by referencing sectoral balance sheets and FWTW tables. - Present other macroeconomic financial indicators relevant to financial stability and monetary transmission analysis. - Current macroeconomic applications highlighted: - (i) financial stability analysis - (ii) monetary analysis with respect to transmission mechanisms ### Integration with wellbeing and sustainability accounting (SNA 2025 linkages) - Broader aim: Use SNA aggregates and accounting structures to support wellbeing and sustainability analysis via extended and thematic accounts. - Two uses identified: - Use existing national accounts aggregates as inputs to wellbeing and sustainability analysis (examples: income, consumption, savings, net worth). - Use SNA accounting rules and structures to organize social and environmental data outside the SNA and link them to form extended accounts. - Key 2025 SNA chapters for guidance: - Chapter 2: National accounts and measures of wellbeing and sustainability - Chapter 34: Measuring wellbeing - Chapter 35: Measuring sustainability - Key points: - Approaches to accounting for distinct aspects of wellbeing are at different levels of standardization and compilation practice. - Chapters encourage compilation of extended accounts and additional breakdowns using SNA aggregates with other frameworks and data sources. ### Concepts and limitations of SNA for wellbeing and sustainability - Definitions: - Wellbeing: material wellbeing of households impacted by education, health, labor, wealth, social, environmental, freedom and other factors. - Sustainability: ability to satisfy present needs without impacting future generations; implies a time dimension requiring stocks and flows of economic, human, environmental, and social capitals. - SNA limitations: - Aggregates measure part of material wellbeing (outputs not outcomes). - Does not cover subjective wellbeing or many environmental preferences. - Records exchange values, not welfare values (consumer surplus and full externalities not captured). - Present production boundary excludes most household services; 2025 SNA extends to include unpaid household services. - No single framework can capture all aspects of wellbeing—multiple perspectives required. ### Existing SNA indicators relevant to wellbeing and sustainability - Income and consumption: - Focus on household (HH) adjusted final consumption, disposable income, and saving. - Importance of net rather than gross measures to account for user cost of capital (see Chapter 21). - Consider impact of expenditures on collective government services and prices/volume measures. - Wealth: - Relates to current and future wellbeing; sustainability assessment requires accumulation accounts and attention to mix of assets, consumer durables, real terms and per capita measures, and assets outside SNA (environmental, human, social). - Public infrastructure (roads, schools, hospitals) impacts household wellbeing. - Environmental accounts: - 2008 SNA includes measures of asset stocks and flows of owned natural assets, resource rents, other changes in value, other changes in volume (e.g., mineral discoveries, depletion), environmental expenditures, and environmental taxes and subsidies. ### Core 2025 SNA updates relevant for environmental and household accounting - Environmental accounts updates driven by SEEA principles include: - Inclusion of stocks/flows of renewable energy resources (revised asset boundary) - Revised approach to measuring natural resource rents - The ‘split-asset approach’ - Depletion of natural resources to be recorded as cost of production (moved from other changes in volume account) - Clarification of production boundary for biological resources, including migratory animal/fish stocks - Updated recording of emissions trading schemes and provisions - Inclusion of unpaid household labor within the production boundary: - Activities meeting the ‘third party’ criterion (caring, cooking, transport, laundry, household management, shopping, volunteering, information services) to be included. - Minimum recommendation: measure such activity at least every five years as an additional element of productive activity in supply and use tables. - Valuation requires (i) time-use information and (ii) appropriate market sector wage rates. - Labor accounts form a new core element of 2025 SNA (see Chapter 16). ### Encouraged breakdowns and extensions for distributional and human capital analysis - Distributional accounts: - Key balancing items to be broken down: primary income; disposable income; adjusted disposable income; final consumption expenditure; actual final consumption expenditure; net worth; net financial worth. - Unit of analysis: standard definition of a household (private or institutional) with equivalization; individual member characteristics should also be recorded. - Estimation requirements include drill-down links between household survey data and final national accounts aggregates; linking multiple data sources via unique identifiers and matching; allocation of macro items like NOE, FISIM for conceptual alignment; appropriate deflation by household type; inclusion of estimates of consumer durable ownership by household. - Education and human capital accounts: - Human capital is outside the SNA asset boundary (self-embodied, nontransferable) but can be considered in extended accounts. - Can be estimated via input cost or lifetime income approaches—no consensus on best models or assumptions. - Education and training link to labor (Chapter 16) and production; UNECE Satellite Accounts for Education and Training (SAET) are fully SNA consistent and useful for SUT-type breakdowns. ### Thematic and extended accounts: roles, tools, and development steps - Purpose: - Thematic and Extended Accounts increase visibility of key economic phenomena while maintaining coherence with SNA framework. - They bring pertinent data together, present further disaggregation, or present alternative aggregations and broader context. - Examples encouraged by 2025 SNA: - Labor account - Digital economy thematic account - Household unpaid service work, health, and education and human capital extended accounts - Roles: - Thematic: increases visibility of activities included in standard aggregates or provides additional composition detail (examples: Tourism, Health, Agriculture, Digitalization (NEW)). - Extended: expand/modify production/consumption/investment boundary, test experimental methodologies, analyze key phenomena (examples: unpaid household work, education & human capital). - Tools to develop a thematic account: - Supply and Use Tables - Additional (more granular) source data - Alternative classifications/aggregations - Steps to develop a thematic account: - Planning: precisely define activity or economic phenomenon. - Compilation: compile thematic SUTs, disaggregate relevant elements, introduce complementary indicators. --- _Source: https://www.imf.org/-/media/files/data/statistics/bmp7/events/unesca-1-presentation-eng.pdf_