## A virtual technical assistance (TA) mission to The Bahamas was undertaken during March 10–14, 2025.

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---

### Mission focus and objectives
- Improve source data and compilation techniques for producing balance of payments (BOP).
- Assist compilers of the Central Bank of The Bahamas (CBB) in finalizing compilation of international investment position (IIP) statistics in line with the Balance of Payments and International Investment Position Manual, sixth edition (BPM6).

### Coverage issues and classification inconsistencies
- Current BOP includes cross-border transactions of domestic banks and domestic insurance companies; cross-border transactions of pension funds are not currently included.
- Cross-border transactions of offshore banks, external insurance companies, and investment funds are excluded from the BOP because they are considered nonresidents under exchange control regulations.
- According to BPM6, offshore institutions are residents of the economy in which they are incorporated; their transactions with residents are resident-to-resident and therefore should not be in the BOP. These transactions are currently included—incorrectly—in The Bahamas’ BOP.
- Recommendation: Include offshore banking sector external transactions in the BOP—excluding their local expenses and other transactions with residents—and their external assets and liabilities positions in the IIP. (Priority: PR; Target Completion Date: December 2025.)

### Progress on data collection and surveys
- Implemented: new quarterly external sector statistics report for banks that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents; processing of results is pending.
- Progress pending: pension funds survey implementation.
- Implemented but low response rate: surveys for transactions, other changes, and positions of domestic and external insurance companies’ external assets and liabilities.
- Implemented but low response rate: surveys for investment funds’ administrators and firms under the Securities Industry Act (SIA).
- ICB and SCB to collaborate with CBB to prioritize most relevant companies for follow-up.

### Travel exports and visitor surveys
- Travel exports are the main item of services and accounted for 80 percent of current account credits in the BOP in 2023.
- Ministry of Tourism is the official data source for travel exports.
- Methodology for calculating average daily expenditure of visitors (stayover, cruise and yacht) was briefly explained; documentation on sampling methodology, survey procedures, and activities needs significant improvement.
- Data for 2023 is still preliminary.
- Recommendation: BOP compilers should play an active role in development and monitoring of visitor surveys following international guidelines.

### International Investment Position (IIP) and consistency with CPIS
- Preliminary IIP is consistent with the financial account of the BOP but does not include the offshore sector (banks, insurance companies, investment funds, and other securities firms).
- This omission creates inconsistency with the Coordinated Portfolio Investment Survey (CPIS), which reports financial portfolio assets of the banking sector including domestic and offshore banks.
- Mission recommends incorporating available external transactions of offshore banks in the BOP and their positions of external assets and liabilities in the preliminary IIP to achieve consistency with the CPIS.
- Once IIP is concluded and offshore sector positions are identified and incorporated, use CDIS mirror statistics as a reference to validate revised positions. (Target Completion Date: June 2026.)

### Direct investment and mirror statistics findings
- Inward and outward direct investment derived from mirror statistics from the Coordinated Direct Investment Survey (CDIS) suggest a high correlation between them, characteristic of offshore funds.
- These inward and outward direct investment positions cannot be currently explained with available information.
- Direct investment liabilities from offshore banks represent around 19 percent of mirror data.
- Direct investment in real estate in The Bahamas could be less than 2 percent of mirror data.
- Outstanding task: calculate direct investment assets of offshore banks to see what percentage they explain from mirror data.
- Other sectors lacking direct investment data: investment funds and other offshore financial and nonfinancial companies.

### Institutional environment and data sources
- The Central Bank of The Bahamas Act, 2020, provides regulation to collect information for compilation of BOP and IIP and states BOP conditions to protect the exchange rate regime and to collect and produce macroeconomic statistics.
- Foreign Exchange Sales Report (FESR) is intensively used for BOP compilation, mainly to compile debits of the current account as it records requests by residents to acquire foreign exchange; offshore entities are considered nonresidents in foreign exchange legislation and are not required to complete these reports.
- CBB improved business register using VAT database from the Department on Inland Revenue (DIR); selected group of 134 companies paying more than US$250 thousand a year was cross-checked with BOP survey respondents. After the mission, register was increased by 250 companies to which the CBB sent the BOP survey; response rate remains unsatisfactory.
- CBB reviewed direct investment project information from the Bahamas Investment Authority (BIA) and will follow up; CBB will request direct investment Heads of Agreement (HOA) from the BIA to improve BOP and IIP data.
- Information on digital assets is pending; SCB committed to review previous questionnaire and send available information on transactions and positions of digital assets held by firms registered under the Digital Assets and Registered Exchanges Act (DARE). Firms registered under DARE trade with nonresidents only and are considered part of the offshore sector.

### Priority recommendations and action plan (selected items with target dates)
- June 2025: Follow up with the Information Technology (IT) area of the CBB on results of the new survey for the banking sector that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents. (Responsible: CBB)
- June 2025: The Research Department of the CBB follows up on potential data sources to estimate direct investment on real estate (Registrar General’s Department and DIR). (Responsible: CBB)
- December 2025: Include the offshore banking sector external transactions in the BOP—excluding their local expenses and other transactions with residents—and their external assets and liabilities positions in the IIP. (Responsible: CBB)
- June 2025: Follow up with the ICB and the SCB to improve the response rate of respective surveys.
- December 2025: Evaluate creation of a working group with the Ministry of Tourism for development and monitoring of visitor surveys following international guidelines.
- October 2025: Approach the Business License Unit or the SCB to request available information on direct investment of International Business Companies (IBCs).
- December 2025: Complete the IIP statement—consistent with the BOP, the CPIS and the Quarterly External Debt Statistics—for the last five years, to be submitted to IMF’s Statistics Department (STA).
- December 2025: Complete the metadata template for the IIP and submit it to STA.
- June 2026: Include the rest of the offshore financial sector external transactions in the BOP and their assets and liabilities positions in the IIP.

### Mission recommendations (concise)
- Improve response rates for surveys from ICB and SCB; prioritize large-asset firms for follow-up.
- CBB to actively engage with Ministry of Tourism to enhance visitor survey design and documentation; monitor survey implementation.
- Incorporate offshore banks’ cross-border transactions and positions into BOP and IIP (exclude local/resident transactions).
- Use administrative sources (BIA HOAs, Registrar General’s Department, DIR) to improve direct investment and real estate estimates.
- Formally request SCB data on holdings and transactions of digital assets of firms registered under DARE.
- Continue monitoring Net Errors and Omissions (NEOs) while addressing data gaps.

### Trade statistics discrepancies (exports and imports) — Key figures (Thousand US$) — Table 2 (2022, 2023)
- Exports declared by The Bahamas (FOB): 574,237 (2022); 700,602 (2023)
- Exports derived from mirror data (CIF) (*): 3,294,789 (2022); 3,817,280 (2023)
- Difference: -2,720,552 (2022); -3,116,678 (2023)

- Exports of HS27 declared by The Bahamas (FOB): 161,073 (2022); 172,604 (2023)
- Exports of HS 27 derived from mirror data (CIF) (*): 1,351,636 (2022); 1,355,122 (2023)
- Difference: -1,190,563 (2022); -1,182,518 (2023)

- Imports declared by The Bahamas (CIF): 3,757,847 (2022); 4,187,478 (2023)
- Imports derived from mirror data (FOB) (*): 10,129,855 (2022); 10,086,274 (2023)
- Difference: -6,372,008 (2022); -5,898,796 (2023)

- Imports of HS27 declared by The Bahamas (CIF): 577,836 (2022); 627,493 (2023)
- Imports of HS 27 derived from mirror data (FOB): 4,128,474 (2022); 3,825,302 (2023)
- Difference: -3,550,638 (2022); -3,197,809 (2023)

Notes:
- Source: UN Comtrade.
- (*) Bermuda, Canada, Mexico and South Africa declared their exports and imports at Free on Board (FOB) value.
- 1/ The export values of The Bahamas derived from partner countries are in general, at Cost and Insurance Freight (CIF) value. Exports declared by The Bahamas are at FOB value. The difference between CIF and FOB values is around 10–12 percent (CIF value higher than FOB value).
- 2/ The import values of The Bahamas derived from partner countries are in general, at FOB value. Imports declared by The Bahamas are at CIF value. The difference between CIF and FOB values is around 10–12 percent.

### Free trade zone and oil storage (Freeport; HS 27 fuel)
- The Bahamas has a free trade zone, the Freeport, on Grand Bahama administered by the Grand Bahama Port Authority; it is treated for customs purposes as outside the customs territory of The Bahamas.
- BNSI records trade in goods following the general trade system: goods imported through a free trade zone or customs warehouses should be recorded as imports; goods that leave the free circulation area and enter a free trade zone should not be included in exports until they leave the country.
- The Bahamas Oil Refining Company International operates oil storage, fuel blending and marine facilities at Freeport.
- CBB shared a table with some values of fuel stored at the facility in 2024 with no change of ownership but did not clarify if there were values of fuel that changed ownership; available values could not be compared with partner-country data — additional clarification will be requested.
- HS 27 definition: petroleum oils and oils from bituminous minerals, not crude; preparations containing by weight 70 percent or more of petroleum oils or oils from bituminous minerals; this being the basic constituents of the preparations.

Analysis:
- The difference between exports of HS 27 declared by The Bahamas and mirror statistics explains around 40 percent of the discrepancy in total exports.
- The difference between imports of HS 27 declared by The Bahamas and mirror statistics explains around 50 percent of the discrepancy in total imports.
- Mirror data from UN Comtrade reflect physical movement of goods; BOP should reflect change of ownership. It is important to clarify goods exported/imported without a change in ownership.

Recommendation:
- The CBB and the BNSI complete the comparison of imports of oil (HS27) including oil for the fuel storage facility at Freeport with mirror data to explain current discrepancies.

### Travel exports (visitors, expenditures, and survey issues) — Key table excerpts (Table 3)
- Stayover visitors’ expenditure (US$): 3,388 (2018); 3,739 (2019); 888 (2020); 2,267 (2021); 3,838 (2022); 4,859 (2023)
- Stayover visitors: 1,632,610 (2018); 1,806,908 (2019); 440,521 (2020); 892,442 (2021); 1,452,520 (2022); N/A (2023)
- Average expenditure of stayover visitors (US$): 2,075 (2018); 2,070 (2019); 1,966 (2020); 2,544 (2021); 2,642 (2022); N/A (2023)

- Cruise ship passengers’ expenditure (US$): 354 (2018); 393 (2019); 78 (2020); 54 (2021); 381 (2022); 707 (2023)
- Cruise ship passengers: 4,877,596 (2018); 5,433,359 (2019); 1,327,142 (2020); 1,115,181 (2021); 5,390,016 (2022); N/A (2023)
- Average expenditure of cruise passengers (US$): 73 (2018); 72 (2019); 59 (2020); 48 (2021); 71 (2022); N/A (2023)

- Excursionists’ expenditure (US$): 3 (2018); 3 (2019); 1 (2020); 1 (2021); 3 (2022); 1 (2023)
- Excursionists: 111,809 (2018); 9,262 (2019); 26,859 (2020); 92,995 (2021); 158,170 (2022); N/A (2023)
- Average expenditure of excursionists (US$): 60 (2018); 60 (2019); 60 (2020); 60 (2021); 60 (2022); N/A (2023)

- Subtotal (US$ million): 3,745 (2018); 4,135 (2019); 968 (2020); 2,322 (2021); 4,222 (2022); 5,567 (2023)
- Total number of visitors: 6,622,015 (2018); 7,249,529 (2019); 1,794,522 (2020); 2,100,618 (2021); 7,000,706 (2022); N/A (2023)
- Total average expenditure (US$): 566 (2018); 570 (2019); 539 (2020); 1,105 (2021); 603 (2022); N/A (2023)
- Total visitor expenditure (US$ million): 3,745 (2018); 4,135 (2019); 967 (2020); 2,322 (2021); 4,222 (2022); 5,567 (2023)

Notes and issues:
- Ministry of Tourism is official provider of travel exports data (number of visitors and total average expenditure).
- CBB updated a table of travel exports until 2023; 2023 data are still preliminary.
- Current 2023 BOP is considering estimated travel exports of US$4,754 million, lower than preliminary travel exports in Table 3 (US$5,567 million). If there are no other revisions to the 2023 BOP, that would increase NEOs to negative US$923.2 million.
- Ministry of Tourism survey includes stayover, cruise, and yacht visitors; number of visitors and expenditure for yacht visitors was not provided. Expenditure of yacht visitors indicated as included in stayover category; purchase categories by visitor type not provided to CBB.
- For yachts, fuel expenses should be recorded in goods procured in ports (cross-checked to avoid double-counting); maintenance/repair recorded in transport services.

Recommendations:
- Evaluate the creation of a working group with the Ministry of Tourism for the development and monitoring of the survey of visitors following international guidelines.
- Request from the Ministry of Tourism the purchase categories of yacht visitors to identify fuel recorded in goods and maintenance recorded in transport services.
- Coordinate with the Ministry of Tourism the enhancement of documentation on the methodology for visitors’ expenditure surveys. Consider following recommendations provided in Appendix III.

### Direct investment (data gaps, mirror statistics, sectors) — Findings and figures
- Data sources for compilation of direct investment liabilities are limited; BOP surveys are the main source but response rate is low; compilers complement with specialized media reports and BIA data.
- Inward direct investment positions derived from mirror statistics from the CDIS reached US$133 billion in 2023 (Table 4). (Note: value excludes data reported as confidential by reporting countries.)
- The stock of direct investment liabilities currently compiled for the IIP is around 5 percent of that value, covering only direct investment of domestic banks and cumulated flows of direct investment enterprises and available land sales.
- CBB calculated own funds at book value (OFBV) of the offshore banks at around 14 percent of mirror data; therefore total direct investment liabilities including the offshore banking sector would be around 19 percent of mirror data.
- Other sectors with missing direct investment: investment funds, other offshore financial and nonfinancial companies, real estate.

Inward direct investment positions from mirror statistics (US$ million) — Table 4:
- Brazil: 22,632 (2018); 42,087 (2019); 52,805 (2020); 60,898 (2021); 58,754 (2022); 58,055 (2023)
- United States: 44,491 (2018); 44,773 (2019); 44,734 (2020); 44,303 (2021); 42,589 (2022); 46,304 (2023)
- Canada: 19,460 (2018); 18,982 (2019); 18,248 (2020); 17,931 (2021); 19,979 (2022); 15,841 (2023)
- Other: 66,846 (2018); 14,036 (2019); 8,428 (2020); 11,130 (2021); 7,802 (2022); 12,559 (2023)
- Total: 153,429 (2018); 119,878 (2019); 124,215 (2020); 134,262 (2021); 129,124 (2022); 132,759 (2023)

- Surveys to insurance companies (ICB supervised) and to entities under the Security Industry Act (SCB supervised) had low response or are pending; ICB and SCB will collaborate with CBB.
- Nonfinancial International Business Companies (IBCs) are offshore, designed for nonresidents, receive tax benefits, minimal reporting, enhanced privacy; no minimum capital, require one director and one shareholder for registration. CBB proposed to approach Business License Unit or SCB for information on IBC direct investment.
- Real estate direct investment: no progress. Previous suggestion to meet main real estate agents to obtain market characteristics is pending. Reference: study on Spain found real estate direct investment reached 12.4 percent of GDP; if The Bahamas real estate DI is between 10 and 15 percent of GDP, for 2023 it would be between US$1.4 billion and US$2.2 billion; this would be no more than 1.7 percent of mirror data for total DI liabilities. Published Brazilian investment on real estate in The Bahamas reaches US$5 million.
- Registrar of property does not have a database distinguishing owners by residency; meeting pending. Meeting with DIR regarding payments of real property tax data is pending.

Outward direct investment positions from mirror statistics (US$ million) — Table 5:
- 2022 total: 77,368
- 2023 total: 90,067
- By counterpart (2022, 2023):
  - Singapore: 21,894 (2022); 24,683 (2023)
  - Luxembourg: 19,874 (2022); 42,754 (2023)
  - Brazil: 6,151 (2022); 6,572 (2023)
  - Other: 29,449 (2022); 16,058 (2023)

Analysis:
- High correlation between inward and outward direct investment derived from CDIS mirrors characteristic of offshore funds; inward and outward positions cannot be currently explained with available information.
- Direct investment liabilities from offshore banks represent around 19 percent of mirror data; direct investment in real estate could be less than 2 percent of mirror data.
- Outstanding task: calculate direct investment assets of offshore banks.

Recommendations:
- Approach the Business License Unit or the SCB to request available information on direct investment of IBCs.
- Research Department of the CBB follows up on potential data sources to estimate direct investment on real estate (Registrar General’s Department, DIR).
- Meet with relevant real estate agents to obtain market characteristics useful for estimates (share of nonresident property buyers, estimated annual trend).
- Calculate direct investment assets of offshore banks.

### Net errors and omissions (NEOs) — Findings and figures
- NEOs were persistently positive since 2014—except for 2019 and 2020—and were exceptionally high in 2021 but reduced in 2022 and 2023.
- Source data limitations persist: debits use foreign exchange reports and external transactions from domestic financial sector; credits side undervalued as business register is under revision.
- Valuation changes are not distinguished from transactions.
- Recent travel credits estimates increased significantly, concealing shortcomings on credit side of other BOP items.
- Current 2023 BOP uses lower estimated travel exports than preliminary Ministry of Tourism figures; if no other revisions, that would increase NEOs to negative US$923.2 million, approximately 6.5 percent of GDP.

Net Errors and Omissions (US$ million and Percentage of GDP) — Table 6:
- 2014: 420.2; 3.8%
- 2015: 855.9; 7.3%
- 2016: 13.6; 0.1%
- 2017: 483.5; 4.0%
- 2018: 266.9; 2.1%
- 2019: -181.2; -1.4%
- 2020: -310.4; -3.1%
- 2021: 937.6; 8.2%
- 2022: 11.3; 0.1%
- 2023: -110.2; -0.8%

Recommendation:
- CBB continues monitoring NEOs closely while following up on current data gaps discussed during the mission.

### IIP and offshore sector inclusion — Findings and recommendations
- CBB prepared IIP statistics for 2015–2023 according to BPM6. External assets and liabilities of offshore entities (banks, insurance companies, investment funds) and pension funds are not included.
- Proposed IIP is consistent with the financial account of the BOP and external debt statistics given current coverage; not consistent with CPIS which reports financial portfolio assets of the whole banking sector including offshore banks.
- Mirror statistics from CDIS show significantly higher values than stocks reported in the IIP.
- Mission recommends incorporating available external transactions of offshore banks in the BOP and their available positions in the preliminary IIP to allow consistency with CPIS. Data on other external assets and liabilities (pension funds, insurance companies, investment funds) remain pending.

Recommendations:
- Follow up with IT area of the CBB on results of the new survey for banks including stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents.
- Follow up within the Research Department of the CBB on implementation of the new survey to pension funds including stocks, transactions, and valuation changes of financial claims on, and liabilities to nonresidents.
- Once valuation changes data from domestic banks, pension funds, and insurance companies are available, complete and review consistency of financial transactions in the BOP and assets/liabilities positions in the IIP.
- Once IIP is concluded and offshore sector positions are identified and incorporated, use CDIS mirror statistics as a reference to validate revised positions.
- Include offshore banking sector transactions in the BOP—excluding local expenses and other transactions with residents—and their assets and liabilities positions in the IIP.
- Separately identify cross-border transactions of the offshore sector in the BOP and their cross-border positions in the IIP for future SPEs flows and positions data template reporting.
- Include rest of offshore financial sector external transactions in the BOP and their assets and liabilities positions in the IIP.
- Complete the IIP statement consistent with the BOP, the CPIS, and the Quarterly External Debt Statistics for the last five years to be submitted to STA.
- Complete the metadata template of the IIP and submit it to STA.

### Appendix I — Progress made on the action plan of the previous mission (selected implementation statuses)
- Outcome: Source data are adequate for the compilation of balance of payments and IIP statistics.
- Priority: PR — Implement the new external sector statistics report for banks and pension funds that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents. Target Completion Date: December 2024. Implementation Status: Accomplished. Note: An external sector statistics report for banks was implemented.
- Priority: H — Discuss with the ICB distribution of surveys for domestic insurance companies’ external assets and liabilities (Form 17, BPM6 Compilation Guide). Target Completion Date: June 2024. Implementation Status: Accomplished. Note: Surveys were collected for three quarters.
- Priority: H — Discuss availability of data on international insurance companies’ transactions and other changes on a quarterly basis. Target Completion Date: June 2024. Implementation Status: Accomplished. Note: Surveys were collected for three quarters.
- Priority: H — Collect insurance services directly from companies following Form 12 of the BPM6 Compilation Guide. Target Completion Date: June 2024. Implementation Status: Accomplished.
- Priority: H — Confirm with BNSI recording of humanitarian aid and imports and re-exports of high-value goods for duty-free areas. Target Completion Date: June 2024. Implementation Status: Accomplished.
- Priority: H — Follow up on questionnaire to Ministry of Tourism on assumptions used for 2019–2022 expenditure of visitors. Target Completion Date: June 2024. Implementation Status: Accomplished. Note: Responses to Appendix IV were received.
- Priority: H — Clarify with the BIA information received on investment projects. Target Completion Date: June 2024. Implementation Status: Accomplished.
- Priority: H — Verify with administrators of the fuel storage facility at Freeport the ownership of oil that enter and leave facility. Target Completion Date: October 2024. Implementation Status: Partially accomplished.
- Priority: H — Request list of main importers from BCD to improve business register. Target Completion Date: December 2024. Implementation Status: Accomplished.
- Priority: H — Formally request SCB data on external assets and liabilities transactions and positions of investment funds. Target Completion Date: December 2024. Implementation Status: Accomplished. Note: Surveys were collected for three quarters.
- Priority: H — Formally request SCB data on holdings and transactions on digital assets held by firms registered to conduct digital asset businesses. Target Completion Date: December 2024. Implementation Status: Pending. Note: An official letter will be sent to the SCB.
- Priority: M — Meet with relevant real estate agents for market characteristics. Target Completion Date: December 2024. Implementation Status: Pending.

### Appendix II — Trade in goods: free zone areas, storage facilities (guidance)
- Recording principle: change of economic ownership is central in determining recording time (paragraph 3.41, BPM6).
- Inclusion rules:
  - Goods entering/leaving a free zone or storage facility that change ownership between resident and nonresident should be included in trade in goods in the BOP.
  - Goods in transit admitted under special customs procedures with no change of ownership are excluded from general merchandise.
  - Goods temporarily exported/imported without change of ownership are not included in trade in goods in the BOP (examples: goods for repair, operating lease, storage, exhibitions).
- Resident-resident movements between free zone areas and free circulation area should not be recorded in the BOP.
- For balance of payments, international trade comprises goods for the entire economy whether dutiable or not.

### Appendix III — Travel surveys: documentation (Visitor’s Survey Report required contents)
- I. Introduction: Description, frequency, period.
- II. Methodology: locations, enumerators, schedule, survey mode, sample design, number of surveys completed, representativeness, database processing, validation.
- III. Results: places of origin, visitor profile, purpose, average length of stay, accommodation type, party size, average daily expenditure per visitor, categories of expenses, other marketing objectives.

### Appendix IV — Direct investment in real estate (Spain example) — Data sources and illustrative results
- Data sources identified: General Council of Notaries; Property Register; Ministry of Public Works; Tax Authorities; National Statistics Institute (INE).
- Estimation method: administrative data and direct reporting; tourism primary statistics used to identify number of houses based on tourists staying in own homes; valuation through administrative price records.
- Results for 2017 (Spain example):
  - Stock estimate: approximately 1 million dwellings.
  - Valuation: valued at over €160 billion.
  - Share of GDP: This was equivalent to 12.4 percent of GDP.

*IMF | CARTAC The Bahamas | March 10–14, 2025.*

### 1.      A virtual technical assistance (TA) mission to The Bahamas was undertaken during

### A virtual technical assistance (TA) mission to The Bahamas was undertaken during March 10–14, 2025.

### Mission focus and objectives
- Improve source data and compilation techniques for producing balance of payments (BOP).
- Assist compilers of the Central Bank of The Bahamas (CBB) in finalizing compilation of international investment position (IIP) statistics in line with the Balance of Payments and International Investment Position Manual, sixth edition (BPM6).

### Coverage issues and classification inconsistencies
- Current BOP includes cross-border transactions of domestic banks and domestic insurance companies; cross-border transactions of pension funds are not currently included.
- Cross-border transactions of offshore banks, external insurance companies, and investment funds are excluded from the BOP because they are considered nonresidents under exchange control regulations.
- According to BPM6, offshore institutions are residents of the economy in which they are incorporated; their transactions with residents are resident-to-resident and therefore should not be in the BOP. These transactions are currently included—incorrectly—in The Bahamas’ BOP.
- Recommendation: Include offshore banking sector external transactions in the BOP—excluding their local expenses and other transactions with residents—and their external assets and liabilities positions in the IIP. (Priority: PR; Target Completion Date: December 2025.)

### Progress on data collection and surveys
- Implemented: new quarterly external sector statistics report for banks that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents; processing of results is pending.
- Progress pending: pension funds survey implementation.
- Implemented but low response rate: surveys for transactions, other changes, and positions of domestic and external insurance companies’ external assets and liabilities.
- Implemented but low response rate: surveys for investment funds’ administrators and firms under the Securities Industry Act (SIA).
- ICB and SCB to collaborate with CBB to prioritize most relevant companies for follow-up.

### Travel exports and visitor surveys
- Travel exports are the main item of services and accounted for 80 percent of current account credits in the BOP in 2023.
- Ministry of Tourism is the official data source for travel exports.
- Methodology for calculating average daily expenditure of visitors (stayover, cruise and yacht) was briefly explained; documentation on sampling methodology, survey procedures, and activities needs significant improvement.
- Data for 2023 is still preliminary.
- Recommendation: BOP compilers should play an active role in development and monitoring of visitor surveys following international guidelines.

### International Investment Position (IIP) and consistency with CPIS
- Preliminary IIP is consistent with the financial account of the BOP but does not include the offshore sector (banks, insurance companies, investment funds, and other securities firms).
- This omission creates inconsistency with the Coordinated Portfolio Investment Survey (CPIS), which reports financial portfolio assets of the banking sector including domestic and offshore banks.
- Mission recommends incorporating available external transactions of offshore banks in the BOP and their positions of external assets and liabilities in the preliminary IIP to achieve consistency with the CPIS.
- Once IIP is concluded and offshore sector positions are identified and incorporated, use CDIS mirror statistics as a reference to validate revised positions. (Target Completion Date: June 2026.)

### Direct investment and mirror statistics findings
- Inward and outward direct investment derived from mirror statistics from the Coordinated Direct Investment Survey (CDIS) suggest a high correlation between them, characteristic of offshore funds.
- These inward and outward direct investment positions cannot be currently explained with available information.
- Direct investment liabilities from offshore banks represent around 19 percent of mirror data.
- Direct investment in real estate in The Bahamas could be less than 2 percent of mirror data.
- Outstanding task: calculate direct investment assets of offshore banks to see what percentage they explain from mirror data.
- Other sectors lacking direct investment data: investment funds and other offshore financial and nonfinancial companies.

### Institutional environment and data sources
- The Central Bank of The Bahamas Act, 2020, provides regulation to collect information for compilation of BOP and IIP and states BOP conditions to protect the exchange rate regime and to collect and produce macroeconomic statistics.
- Foreign Exchange Sales Report (FESR) is intensively used for BOP compilation, mainly to compile debits of the current account as it records requests by residents to acquire foreign exchange; offshore entities are considered nonresidents in foreign exchange legislation and are not required to complete these reports.
- CBB improved business register using VAT database from the Department on Inland Revenue (DIR); selected group of 134 companies paying more than US$250 thousand a year was cross-checked with BOP survey respondents. After the mission, register was increased by 250 companies to which the CBB sent the BOP survey; response rate remains unsatisfactory.
- CBB reviewed direct investment project information from the Bahamas Investment Authority (BIA) and will follow up; CBB will request direct investment Heads of Agreement (HOA) from the BIA to improve BOP and IIP data.
- Information on digital assets is pending; SCB committed to review previous questionnaire and send available information on transactions and positions of digital assets held by firms registered under the Digital Assets and Registered Exchanges Act (DARE). Firms registered under DARE trade with nonresidents only and are considered part of the offshore sector.

### Priority recommendations and action plan (selected items with target dates)
- June 2025: Follow up with the Information Technology (IT) area of the CBB on results of the new survey for the banking sector that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents. (Responsible: CBB)
- June 2025: The Research Department of the CBB follows up on potential data sources to estimate direct investment on real estate (Registrar General’s Department and DIR). (Responsible: CBB)
- December 2025: Include the offshore banking sector external transactions in the BOP—excluding their local expenses and other transactions with residents—and their external assets and liabilities positions in the IIP. (Responsible: CBB)
- June 2025: Follow up with the ICB and the SCB to improve the response rate of respective surveys.
- December 2025: Evaluate creation of a working group with the Ministry of Tourism for development and monitoring of visitor surveys following international guidelines.
- October 2025: Approach the Business License Unit or the SCB to request available information on direct investment of International Business Companies (IBCs).
- December 2025: Complete the IIP statement—consistent with the BOP, the CPIS and the Quarterly External Debt Statistics—for the last five years, to be submitted to IMF’s Statistics Department (STA).
- December 2025: Complete the metadata template for the IIP and submit it to STA.
- June 2026: Include the rest of the offshore financial sector external transactions in the BOP and their assets and liabilities positions in the IIP.

### Mission recommendations (concise)
- Improve response rates for surveys from ICB and SCB; prioritize large-asset firms for follow-up.
- CBB to actively engage with Ministry of Tourism to enhance visitor survey design and documentation; monitor survey implementation.
- Incorporate offshore banks’ cross-border transactions and positions into BOP and IIP (exclude local/resident transactions).
- Use administrative sources (BIA HOAs, Registrar General’s Department, DIR) to improve direct investment and real estate estimates.
- Formally request SCB data on holdings and transactions of digital assets of firms registered under DARE.
- Continue monitoring Net Errors and Omissions (NEOs) while addressing data gaps.

*IMF | CARTAC The Bahamas | March 10–14, 2025.*

### 15.        The previous mission noted significant differences between mirror statistics and exports

### 15.        The previous mission noted significant differences between mirror statistics and exports

### Trade statistics discrepancies (exports and imports)
- Exports reported by The Bahamas are less than 20 percent of mirror data from UN Comtrade statistics.
- Imports of The Bahamas are less than 40 percent of mirror data declared by partner countries.
- CBB receives preliminary aggregated imports and exports of goods from the Bahamas Customs Department (BCD), replaced with data from BNSI once available; CBB does not have access to granular data by item and company.
- After the mission, the CED confirmed that goods are reported when they enter the free trade zone and are captured in the data provided to CBB.

Key figures (Thousand US$) — Table 2 (2022, 2023):
- Exports declared by The Bahamas (FOB): 574,237 (2022); 700,602 (2023)
- Exports derived from mirror data (CIF) (*): 3,294,789 (2022); 3,817,280 (2023)
- Difference: -2,720,552 (2022); -3,116,678 (2023)

- Exports of HS27 declared by The Bahamas (FOB): 161,073 (2022); 172,604 (2023)
- Exports of HS 27 derived from mirror data (CIF) (*): 1,351,636 (2022); 1,355,122 (2023)
- Difference: -1,190,563 (2022); -1,182,518 (2023)

- Imports declared by The Bahamas (CIF): 3,757,847 (2022); 4,187,478 (2023)
- Imports derived from mirror data (FOB) (*): 10,129,855 (2022); 10,086,274 (2023)
- Difference: -6,372,008 (2022); -5,898,796 (2023)

- Imports of HS27 declared by The Bahamas (CIF): 577,836 (2022); 627,493 (2023)
- Imports of HS 27 derived from mirror data (FOB): 4,128,474 (2022); 3,825,302 (2023)
- Difference: -3,550,638 (2022); -3,197,809 (2023)

Notes:
- Source: UN Comtrade.
- (*) Bermuda, Canada, Mexico and South Africa declared their exports and imports at Free on Board (FOB) value.
- 1/ The export values of The Bahamas derived from partner countries are in general, at Cost and Insurance Freight (CIF) value. Exports declared by The Bahamas are at FOB value. The difference between CIF and FOB values is around 10–12 percent (CIF value higher than FOB value).
- 2/ The import values of The Bahamas derived from partner countries are in general, at FOB value. Imports declared by The Bahamas are at CIF value. The difference between CIF and FOB values is around 10–12 percent.

### Free trade zone and oil storage (Freeport; HS 27 fuel)
- The Bahamas has a free trade zone, the Freeport, on Grand Bahama administered by the Grand Bahama Port Authority; it is treated for customs purposes as outside the customs territory of The Bahamas.
- BNSI records trade in goods following the general trade system: goods imported through a free trade zone or customs warehouses should be recorded as imports; goods that leave the free circulation area and enter a free trade zone should not be included in exports until they leave the country.
- The Bahamas Oil Refining Company International operates oil storage, fuel blending and marine facilities at Freeport.
- CBB shared a table with some values of fuel stored at the facility in 2024 with no change of ownership but did not clarify if there were values of fuel that changed ownership; available values could not be compared with partner-country data — additional clarification will be requested.
- HS 27 definition: petroleum oils and oils from bituminous minerals, not crude; preparations containing by weight 70 percent or more of petroleum oils or oils from bituminous minerals; this being the basic constituents of the preparations.

Analysis:
- The difference between exports of HS 27 declared by The Bahamas and mirror statistics explains around 40 percent of the discrepancy in total exports.
- The difference between imports of HS 27 declared by The Bahamas and mirror statistics explains around 50 percent of the discrepancy in total imports.
- Mirror data from UN Comtrade reflect physical movement of goods; BOP should reflect change of ownership. It is important to clarify goods exported/imported without a change in ownership.

Recommendation:
- The CBB and the BNSI complete the comparison of imports of oil (HS27) including oil for the fuel storage facility at Freeport with mirror data to explain current discrepancies.

### Travel exports (visitors, expenditures, and survey issues)
Key table excerpts (Table 3):
- Stayover visitors’ expenditure (US$): 3,388 (2018); 3,739 (2019); 888 (2020); 2,267 (2021); 3,838 (2022); 4,859 (2023)
- Stayover visitors: 1,632,610 (2018); 1,806,908 (2019); 440,521 (2020); 892,442 (2021); 1,452,520 (2022); N/A (2023)
- Average expenditure of stayover visitors (US$): 2,075 (2018); 2,070 (2019); 1,966 (2020); 2,544 (2021); 2,642 (2022); N/A (2023)

- Cruise ship passengers’ expenditure (US$): 354 (2018); 393 (2019); 78 (2020); 54 (2021); 381 (2022); 707 (2023)
- Cruise ship passengers: 4,877,596 (2018); 5,433,359 (2019); 1,327,142 (2020); 1,115,181 (2021); 5,390,016 (2022); N/A (2023)
- Average expenditure of cruise passengers (US$): 73 (2018); 72 (2019); 59 (2020); 48 (2021); 71 (2022); N/A (2023)

- Excursionists’ expenditure (US$): 3 (2018); 3 (2019); 1 (2020); 1 (2021); 3 (2022); 1 (2023)
- Excursionists: 111,809 (2018); 9,262 (2019); 26,859 (2020); 92,995 (2021); 158,170 (2022); N/A (2023)
- Average expenditure of excursionists (US$): 60 (2018); 60 (2019); 60 (2020); 60 (2021); 60 (2022); N/A (2023)

- Subtotal (US$ million): 3,745 (2018); 4,135 (2019); 968 (2020); 2,322 (2021); 4,222 (2022); 5,567 (2023)
- Total number of visitors: 6,622,015 (2018); 7,249,529 (2019); 1,794,522 (2020); 2,100,618 (2021); 7,000,706 (2022); N/A (2023)
- Total average expenditure (US$): 566 (2018); 570 (2019); 539 (2020); 1,105 (2021); 603 (2022); N/A (2023)
- Total visitor expenditure (US$ million): 3,745 (2018); 4,135 (2019); 967 (2020); 2,322 (2021); 4,222 (2022); 5,567 (2023)

Notes and issues:
- Ministry of Tourism is official provider of travel exports data (number of visitors and total average expenditure).
- CBB updated a table of travel exports until 2023; 2023 data are still preliminary.
- Current 2023 BOP is considering estimated travel exports of US$4,754 million, lower than preliminary travel exports in Table 3 (US$5,567 million). If there are no other revisions to the 2023 BOP, that would increase NEOs to negative US$923.2 million.
- Ministry of Tourism survey includes stayover, cruise, and yacht visitors; number of visitors and expenditure for yacht visitors was not provided. Expenditure of yacht visitors indicated as included in stayover category; purchase categories by visitor type not provided to CBB.
- For yachts, fuel expenses should be recorded in goods procured in ports (cross-checked to avoid double-counting); maintenance/repair recorded in transport services.

Recommendations:
- Evaluate the creation of a working group with the Ministry of Tourism for the development and monitoring of the survey of visitors following international guidelines.
- Request from the Ministry of Tourism the purchase categories of yacht visitors to identify fuel recorded in goods and maintenance recorded in transport services.
- Coordinate with the Ministry of Tourism the enhancement of documentation on the methodology for visitors’ expenditure surveys. Consider following recommendations provided in Appendix III.

### Direct investment (data gaps, mirror statistics, sectors)
Findings:
- Data sources for compilation of direct investment liabilities are limited; BOP surveys are the main source but response rate is low; compilers complement with specialized media reports and BIA data.
- Inward direct investment positions derived from mirror statistics from the CDIS reached US$133 billion in 2023 (Table 4). (Note: value excludes data reported as confidential by reporting countries.)
- The stock of direct investment liabilities currently compiled for the IIP is around 5 percent of that value, covering only direct investment of domestic banks and cumulated flows of direct investment enterprises and available land sales.
- CBB calculated own funds at book value (OFBV) of the offshore banks at around 14 percent of mirror data; therefore total direct investment liabilities including the offshore banking sector would be around 19 percent of mirror data.
- Other sectors with missing direct investment: investment funds, other offshore financial and nonfinancial companies, real estate.

Inward direct investment positions from mirror statistics (US$ million) — Table 4:
- Brazil: 22,632 (2018); 42,087 (2019); 52,805 (2020); 60,898 (2021); 58,754 (2022); 58,055 (2023)
- United States: 44,491 (2018); 44,773 (2019); 44,734 (2020); 44,303 (2021); 42,589 (2022); 46,304 (2023)
- Canada: 19,460 (2018); 18,982 (2019); 18,248 (2020); 17,931 (2021); 19,979 (2022); 15,841 (2023)
- Other: 66,846 (2018); 14,036 (2019); 8,428 (2020); 11,130 (2021); 7,802 (2022); 12,559 (2023)
- Total: 153,429 (2018); 119,878 (2019); 124,215 (2020); 134,262 (2021); 129,124 (2022); 132,759 (2023)

- Surveys to insurance companies (ICB supervised) and to entities under the Security Industry Act (SCB supervised) had low response or are pending; ICB and SCB will collaborate with CBB.
- Nonfinancial International Business Companies (IBCs) are offshore, designed for nonresidents, receive tax benefits, minimal reporting, enhanced privacy; no minimum capital, require one director and one shareholder for registration. CBB proposed to approach Business License Unit or SCB for information on IBC direct investment.
- Real estate direct investment: no progress. Previous suggestion to meet main real estate agents to obtain market characteristics is pending. Reference: study on Spain found real estate direct investment reached 12.4 percent of GDP; if The Bahamas real estate DI is between 10 and 15 percent of GDP, for 2023 it would be between US$1.4 billion and US$2.2 billion; this would be no more than 1.7 percent of mirror data for total DI liabilities. Published Brazilian investment on real estate in The Bahamas reaches US$5 million.
- Registrar of property does not have a database distinguishing owners by residency; meeting pending. Meeting with DIR regarding payments of real property tax data is pending.

Outward direct investment positions from mirror statistics (US$ million) — Table 5:
- 2022 total: 77,368
- 2023 total: 90,067
- By counterpart (2022, 2023):
  - Singapore: 21,894 (2022); 24,683 (2023)
  - Luxembourg: 19,874 (2022); 42,754 (2023)
  - Brazil: 6,151 (2022); 6,572 (2023)
  - Other: 29,449 (2022); 16,058 (2023)

Analysis:
- High correlation between inward and outward direct investment derived from CDIS mirrors characteristic of offshore funds; inward and outward positions cannot be currently explained with available information.
- Direct investment liabilities from offshore banks represent around 19 percent of mirror data; direct investment in real estate could be less than 2 percent of mirror data.
- Outstanding task: calculate direct investment assets of offshore banks.

Recommendations:
- Approach the Business License Unit or the SCB to request available information on direct investment of IBCs.
- Research Department of the CBB follows up on potential data sources to estimate direct investment on real estate (Registrar General’s Department, DIR).
- Meet with relevant real estate agents to obtain market characteristics useful for estimates (share of nonresident property buyers, estimated annual trend).
- Calculate direct investment assets of offshore banks.

### Net errors and omissions (NEOs)
Findings:
- NEOs were persistently positive since 2014—except for 2019 and 2020—and were exceptionally high in 2021 but reduced in 2022 and 2023.
- Source data limitations persist: debits use foreign exchange reports and external transactions from domestic financial sector; credits side undervalued as business register is under revision.
- Valuation changes are not distinguished from transactions.
- Recent travel credits estimates increased significantly, concealing shortcomings on credit side of other BOP items.
- Current 2023 BOP uses lower estimated travel exports than preliminary Ministry of Tourism figures; if no other revisions, that would increase NEOs to negative US$923.2 million, approximately 6.5 percent of GDP.

Net Errors and Omissions (US$ million and Percentage of GDP) — Table 6:
- 2014: 420.2; 3.8%
- 2015: 855.9; 7.3%
- 2016: 13.6; 0.1%
- 2017: 483.5; 4.0%
- 2018: 266.9; 2.1%
- 2019: -181.2; -1.4%
- 2020: -310.4; -3.1%
- 2021: 937.6; 8.2%
- 2022: 11.3; 0.1%
- 2023: -110.2; -0.8%

Recommendation:
- CBB continues monitoring NEOs closely while following up on current data gaps discussed during the mission.

### International Investment Position (IIP) and offshore sector inclusion
Findings:
- CBB prepared IIP statistics for 2015–2023 according to BPM6. External assets and liabilities of offshore entities (banks, insurance companies, investment funds) and pension funds are not included.
- Proposed IIP is consistent with the financial account of the BOP and external debt statistics given current coverage; not consistent with CPIS which reports financial portfolio assets of the whole banking sector including offshore banks.
- Mirror statistics from CDIS show significantly higher values than stocks reported in the IIP.
- Mission recommends incorporating available external transactions of offshore banks in the BOP and their available positions in the preliminary IIP to allow consistency with CPIS. Data on other external assets and liabilities (pension funds, insurance companies, investment funds) remain pending.

Recommendations:
- Follow up with IT area of the CBB on results of the new survey for banks including stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents.
- Follow up within the Research Department of the CBB on implementation of the new survey to pension funds including stocks, transactions, and valuation changes of financial claims on, and liabilities to nonresidents.
- Once valuation changes data from domestic banks, pension funds, and insurance companies are available, complete and review consistency of financial transactions in the BOP and assets/liabilities positions in the IIP.
- Once IIP is concluded and offshore sector positions are identified and incorporated, use CDIS mirror statistics as a reference to validate revised positions.
- Include offshore banking sector transactions in the BOP—excluding local expenses and other transactions with residents—and their assets and liabilities positions in the IIP.
- Separately identify cross-border transactions of the offshore sector in the BOP and their cross-border positions in the IIP for future SPEs flows and positions data template reporting.
- Include rest of offshore financial sector external transactions in the BOP and their assets and liabilities positions in the IIP.
- Separately identify cross-border transactions of the whole offshore banking sector in the BOP and their cross-border positions in the IIP for future SPEs flows and positions data template reporting.
- Complete the IIP statement consistent with the BOP, the CPIS, and the Quarterly External Debt Statistics for the last five years to be submitted to STA.
- Complete the metadata template of the IIP and submit it to STA.

*Source: tarea2025069-source-pdf - 15.        The previous mission noted significant differences between mirror statistics and exports*

### APPENDIX I. PROGRESS MADE ON THE ACTION PLAN OF THE PREVIOUS MISSION

### APPENDIX I. PROGRESS MADE ON THE ACTION PLAN OF THE PREVIOUS MISSION

### Progress on Action Plan (February) — Summary of implementation status and outcomes
- Outcome: Source data are adequate for the compilation of balance of payments and IIP statistics.
- Priority: PR
  - Action/Milestone: Implement the new external sector statistics report for banks and pension funds that will include data on stocks, transactions, and valuation changes of financial claims on and liabilities to nonresidents.
  - Target Completion Date: December 2024
  - Implementation Status: Accomplished.
  - Note: An external sector statistics report for banks was implemented.
- Priority: H
  - Action/Milestone: Discuss with the ICB the distribution of surveys to collect data on transactions and other changes of domestic insurance companies’ external assets and liabilities, following Form 17 of the BPM6 Compilation Guide.
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
  - Note: Surveys were collected for three quarters.
- Priority: H
  - Action/Milestone: Discuss with the ICB the availability of data on transactions and other changes in external assets and liabilities of the international insurance companies, on a quarterly basis.
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
  - Note: Surveys were collected for three quarters.
- Priority: H
  - Action/Milestone: Discuss with the ICB the possibility to collect insurance services directly from companies following Form 12 of the BPM6 Compilation Guide.
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
- Priority: H
  - Action/Milestone: The CBB confirms with the BNSI the recording of humanitarian aid and imports and re-exports of high-value goods for the duty-free areas.
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
- Priority: H
  - Action/Milestone: The CBB follows up on the questionnaire sent to the Ministry of Tourism requesting information on the assumptions used for the 2019–2022 expenditure of visitors and the evolution of the average expenditure of visitors (Appendix IV).
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
  - Note: Responses to Appendix IV were received.
- Priority: H
  - Action/Milestone: Clarify with the BIA the information received on the investment projects.
  - Target Completion Date: June 2024
  - Implementation Status: Accomplished.
- Priority: H
  - Action/Milestone: The CBB and the BNSI verify with the administrators of the fuel storage facility at Freeport the ownership of the oil that enter and leave the facility.
  - Target Completion Date: October 2024
  - Implementation Status: Partially accomplished.
- Priority: H
  - Action/Milestone: Request from the BCD the list of main importers that will be used to improve the business register and the main products exported and imported for validation purposes with mirror data.
  - Target Completion Date: December 2024
  - Implementation Status: Accomplished.
- Priority: H
  - Action/Milestone: Formally request the SCB data on the external assets and liabilities transactions and positions of the investment funds using the form revised during the mission.
  - Target Completion Date: December 2024
  - Implementation Status: Accomplished.
  - Note: Surveys were collected for three quarters.
- Priority: H
  - Action/Milestone: Formally request the SCB data on the holdings and transactions on digital assets held by the firms registered to conduct digital asset businesses.
  - Target Completion Date: December 2024
  - Implementation Status: Pending.
  - Note: An official letter will be sent to the SCB.
- Priority: M
  - Action/Milestone: Meet with relevant real estate agents to obtain some characteristics of the real estate market that could be useful for an estimate (share of nonresident property buyers, an estimated annual trend jointly with aggregated data from other countries).
  - Target Completion Date: December 2024
  - Implementation Status: Pending.

### Methodological and data quality actions and targets
- Outcome: Statistical techniques are sound.
  - Priority: H
    - Action/Milestone: Cross-check information on the selected companies from the database of Value-Added Taxpayers with the information on those that respond to the balance of payments survey and those that report the FESR. Those companies that are not receiving the balance of payments survey should be included in the list of reporters to have a more comprehensive frame for the recording of cross-border transactions in the BOP and positions in the IIP.
    - Target Completion Date: December 2024
    - Implementation Status: Accomplished.
- Outcome: Methodological basis for the statistics follows internationally accepted standards, guidelines, or good practices.
  - Priority: PR
    - Action/Milestone: Include the offshore financial sector transactions in the BOP—excluding their local expenses and other transactions with residents—and their assets and liabilities positions in the IIP.
    - Target Completion Date: December 2025
    - Implementation Status: The target date is in the future.
  - Priority: H
    - Action/Milestone: Identify separately the cross-border transactions of the offshore sector in the BOP and their cross-border positions in the IIP.
    - Target Completion Date: December 2025
    - Implementation Status: The target date is in the future.
  - Priority: M
    - Action/Milestone: Review the current classification of insurance services debits between direct insurance services and reinsurance services.
    - Target Completion Date: June 2024
    - Implementation Status: Accomplished.
    - Note: The classification process was completed for three years, and the change was made in the BOP.
- Outcome: Improved periodicity, timeliness, and consistency of the data.
  - Priority: PR
    - Action/Milestone: Once the data on valuation changes from the domestic banks, pension funds, and insurance companies are available, complete and review the consistency of the financial transactions in the balance of payments and the assets and liabilities positions in the IIP.
    - Target Completion Date: December 2024
    - Implementation Status: Pending.
  - Priority: H
    - Action/Milestone: Once the IIP is concluded and the offshore sector positions are identified and incorporated, use the CDIS mirror statistics as a reference for validation.
    - Target Completion Date: December 2025
    - Implementation Status: The target date is in the future.
- Outcome: A new data set has been compiled and disseminated internally and/or to the public.
  - Priority: H
    - Action/Milestone: Complete the IIP statement consistent with the current BOP for the last five years including an estimate for real estate direct investment stock to be submitted to STA.
    - Target Completion Date: June 2025
    - Implementation Status: Postponed.
  - Priority: H
    - Action/Milestone: Complete the IIP statement for the last five years, including the offshore sector in line with BPM6 to be submitted to STA.
    - Target Completion Date: December 2025
    - Implementation Status: The target date is in the future.
- Outcome: Improved data and metadata accessibility.
  - Priority: H
    - Action/Milestone: Consider amendments to the CPIS metadata indicated in paragraph 25 of this report.
    - Target Completion Date: June 2024
    - Implementation Status: Accomplished.
  - Priority: H
    - Action/Milestone: Complete the metadata template of the IIP and submit it to STA.
    - Target Completion Date: June 2025
    - Implementation Status: Postponed.

### Implementation status keywords used in the Action Plan
- Accomplished.
- Partially accomplished.
- Pending.
- Postponed.
- The target date is in the future.

---

### APPENDIX II. TRADE IN GOODS: FREE ZONE AREAS, STORAGE FACILITIES

### Key guidance and implications for BOP recording
- Definition: The economic territory is the area under the effective economic control of a single government. For global statistics, it is important to have data on all areas under the control of the government, including special zones (such as free trade zones or offshore financial centers), even though different regulatory and tax regimes may apply.
- Recording principle: For the recording of a resident-nonresident transaction, the change of economic ownership is central in determining the time of recording a transaction.
  - Reference: According to paragraph 3.41 of the BPM6, a change in economic ownership means that all risks, rewards, and rights and responsibilities of ownership in practice are transferred from one economic agent to the other.
  - Note: In general, a change in “legal ownership” also involves a change in economic ownership.
- Inclusion rules:
  - Goods that enter to (or leave) a free zone area or any storage facility in the country and change ownership from a nonresident to a resident (or vice versa) should be included in trade in goods in the BOP.
  - Goods in transit trade admitted under special customs procedures that allow the goods to pass through the territory are excluded from the general merchandise of the territory of transit because there is not a change of ownership.
  - Goods temporarily exported or imported without a change of ownership are not included in trade in goods in the BOP. Examples: goods for repair, as part of an operating lease, for storage, and animals or artifacts for participation in exhibitions or competitions.
- Resident-resident movements:
  - Movements of goods between the free zone areas and the free circulation area of the country should not be recorded in the BOP, because they are resident-resident transactions.
- Scope:
  - For balance of payments, international trade comprises goods for the entire economy whether dutiable or not.
- Cross-reference notes:
  - See paragraphs 3.41 and 5.3 of the BPM6 for further details.
  - Customs records reflect physical movement; BOP records transactions when change of ownership occurs (BPM6 Compilation Guide, paragraph 5.3).

---

### APPENDIX III. TRAVEL SURVEYS: DOCUMENTATION

### Visitor’s Survey Report — Required contents and methodological guidance
- I. Introduction: Motivation and Purpose of the survey
  - Description of the survey.
  - Frequency of the surveys (monthly, quarterly, annual, during defined seasons).
  - Period in which the reported survey was conducted.
- II. Methodology
  - Indicate where the surveys were conducted.
  - Number of enumerators and supervisors.
  - Schedule of the surveys (a specific time of the day, following scheduled flights).
  - Indicate how the surveys were conducted (interviews, the visitors complete the survey on his/her own).
  - Indicate how the sample was designed. Number of surveys completed.
  - Sample and results (representativeness obtained).
  - Indicate how the database was processed and validation procedures.
- III. Results
  - Places of origin of the visitors.
  - Visitors profile (Visitors by age, income).
  - Purpose of the visit (the purpose without which the trip would not have occurred).
  - Average length of stay.
  - Type of selected accommodation.
  - Party size (Family groups, friends’ group, couple, single).
  - Average daily expenditure per visitor.
  - Categories of expenses.
  - Other marketing objectives if requested in the survey (travel experience, activities, places of interest, travel arrangements, willingness to return, recommendations, etc.).

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### APPENDIX IV. DIRECT INVESTMENT IN REAL ESTATE (Example: Stock of non-resident owned dwellings in Spain)

### Objective and scope
- Objective: Measure the value of residential real estate in Spain owned by nonresident households.
- Actors and transactions considered:
  - Economic values: the dwelling, the provision and consumption of services, and the related income flows.
  - Actors: owner and occupier (often the same).
  - Transactions/processes: buying, selling, rental and occupation.

### Data sources identified
- General Council of Notaries: Transactions data (quarterly). Information includes number of transactions, purchase value, average surface area, average price per square meter, location, nationality and fiscal residence of the purchaser.
- Property Register: Registration data. Information includes number of transactions, purchase value, average surface area, average price per square meter, location, nationality of the purchaser.
- Ministry of Public Works: Housing stock estimates.
- Tax Authorities: Income tax data for nonresidents (imputed income of urban real estate for own use for nonresident natural person taxpayers).
- National Statistics Institute (INE): Census and tourism statistics.

### Estimation method
- Historical methodology for BOP and IIP: International Transaction Reporting System (ITRS).
- Current methodology: administrative data and direct reporting.
- Specific estimation approach used in the Spain study:
  - Used tourism primary statistics to identify the number of houses based on tourists staying in their own homes and adjusted for the frequency of entries and for the number of tourists staying in the same dwelling (size of the group).
  - Valuation made through administrative records with price information depending on the location of the dwelling.

### Results and conclusions (Spain example)
- Results for 2017:
  - Stock estimate: approximately 1 million dwellings.
  - Valuation: valued at over €160 billion.
  - Share of GDP: This was equivalent to 12.4 percent of GDP.

*APPENDIX I–IV, tarea2025069-source-pdf*

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_Source: https://www.imf.org/-/media/files/publications/tar/2025/english/tarea2025069-source-pdf.pdf_