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---

### Overall assessment — key findings
- Mexico has been a subscriber of the Special Data Dissemination Standard (SDDS) since August 1996, posting metadata on the Fund’s Dissemination Standards Bulletin Board (DSBB) in March 1998.
- Mexico is in observance of the SDDS, meeting specifications for data coverage, periodicity and timeliness, and the dissemination of advance release calendars.
- Mexico avails itself of a flexibility option on the timeliness of general government or public sector operations.
- This ROSC data module is a reassessment of the 2010 exercise applying the IMF’s Data Quality Assessment Framework (DQAF May 2012) and covers the national accounts.
- National accounts statistics are generally of a high quality and adequate to conduct effective surveillance.
- The mission found a high degree of quality awareness, professionalism, and integrity at the INEGI.
- Institutional changes under the Law of the National System of Statistical and Geographic Information (LSNIEG) created the SNIEG with oversight by the National Statistical Council and specialist committees, positioning INEGI as an autonomous coordinator of the SNIEG.
- Improvements observed since 2010 include: consultation with users, inter-institutional coordination, data coverage, INEGI website accessibility, introduction of 2007 NAICS, implementation of SCN 2008, and rebasing to 2008.

### Main shortcomings and areas for improvement
- Need for greater consistency in data recording across agencies and for regular inter-institution reconciliation exercises to resolve data discrepancies.
- Specific discrepancies:
  - Fixed capital formation of state and local governments contributes to significant divergence between investment measures in government finance statistics and national accounts.
  - Discrepancy between the deficit published by the Finance Ministry and the estimate of government saving and investment in the national accounts.
- Wider adoption of international statistical standards (for example GFSM 2001) recommended to promote consistency between SHCP’s and INEGI’s government data.
- Resource and operational concerns:
  - Resources are adequate overall but 32 percent of staff are contractual, potentially affecting continuity if contracts are not renewed.
  - Resource constraints exist to maintain the National Survey of Micro-Business (planned every two years) and the agricultural census (planned every 10 years), and to compile seasonally-adjusted series in a timely fashion.
- Methodological and data issues:
  - Most government transactions at quarterly frequency are recorded on a cash rather than accrual basis (deviation from best practice).
  - Agriculture is not benchmarked to the annual data: agricultural work-in-progress is estimated quarterly but not in annual estimates.
  - The average benchmark-to-indicator ratio (BI) of the previous year is used for aligning quarterly estimates to annual data instead of the BI of the fourth quarter of the previous year, creating a step problem in the first quarter.
  - Estimates of changes in inventories are incomplete: raw materials inventories and inventories held in wholesale and retail trade are not included.
  - Single indicator methods with fixed coefficients applied to volumes are used to estimate value added for goods-producing industries; double deflation is used for services.
  - Taxes and subsidies on products at constant prices are estimated by applying the GDP growth rate (a deviation from best practice).
- Serviceability and accessibility:
  - Need to improve consistency across datasets; reconciliation of data does not appear to be done on a regular basis.
  - Need to provide more information to users on sources of revisions — user consultations support this need.
  - Timeliness of general government operations remains an exception to meeting SDDS; annual integrated economic accounts by institutional sector timeliness has improved but still needs improvement.
  - Accessibility improved since 2010: marked improvement in assistance to users, range and detail of indicators, downloadable time series, and key statistics presentation. However, metadata on actual compilation practices is insufficient and some information is hard to locate on the website.

### DQAF summary results — national accounts (selected)
- Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable.
- Dimension 0. Prerequisites of quality
  - 0.1 Legal and institutional environment: O
  - 0.2 Resources: LO
  - 0.3 Relevance: O
  - 0.4 Other quality management: O
- Dimension 1. Assurances of integrity
  - 1.1 Institutional integrity: O
  - 1.2 Transparency: O
  - 1.3 Ethical standards: O
- Dimension 2. Methodological soundness
  - 2.1 Concepts and definitions: O
  - 2.2 Scope: O
  - 2.3 Classification/sectorization: O
  - 2.4 Basis for recording: LO
- Dimension 3. Accuracy and reliability
  - 3.1 Source data: LO
  - 3.2 Assessment of source data: O
  - 3.3 Statistical techniques: LO
  - 3.4 Assessment and validation of intermediate data and statistical outputs: O
  - 3.5 Revision studies: O
- Dimension 4. Serviceability
  - 4.1 Periodicity and timeliness: O
  - 4.2 Consistency: LO
  - 4.3 Revision policy and practice: LO
- Dimension 5. Accessibility
  - 5.1 Data accessibility: O
  - 5.2 Metadata accessibility: LO
  - 5.3 Assistance to users: O

### Institutional, legal and resource environment (highlights)
- INEGI operates under the LSNIEG (published April 2008) with exclusive responsibility for conducting the national census and integrating the system of national accounts (Article 59).
- Under Article 26 of the Constitution INEGI has technical and managerial autonomy.
- Confidentiality guaranteed by LSNIEG Chapter V and by the Federal Law of Administrative Responsibilities of the Public Servants (March 2002).
- Article 45 (1) obliges system respondents to provide accurate and timely data; penalties exist for refusal or falsification.
- DGACN staffing: the directorate has 233 positions, of which there are 159 budgetary jobs and 74 extra-budgetary (on contract); Thirty-two percent (32 percent) are on contract.
- DGACN composition includes four Area Directorates: National Accounts, Satellite Accounts, Short-Term and Regional Accounts, and Input-Output.

### Source data and statistical techniques — core points
- Comprehensive regular system of censuses (five-year frequency) and monthly and annual surveys; DENUE sampling frame includes 4,410,198 establishments.
- Detailed supply and use tables constructed for base year 2008; quarterly GDP by production compiled at a quite disaggregated level (668 classes at current compilation; published for 171 classes).
- Wide use of single indicator methods with fixed coefficients for goods-producing industries; double deflation for services.
- Denton method used for benchmarking quarterly data, except for agriculture.
- The BI of the previous year is used for benchmarking rather than the BI of the fourth quarter of the previous year (identified as creating a step problem).
- Seasonal adjustment uses X-12-ARIMA; seasonally-adjusted series are produced but independent adjustment of component series can introduce inconsistencies.
- Taxes on goods at constant prices are not properly estimated; current practice applies the GDP growth rate to taxes (deviation from best practice).
- Inventory change estimates exclude raw materials and wholesale/retail trade inventories; inventory valuation adjustments are not estimated.

### Serviceability — periodicity, timeliness, consistency and revisions
- Periodicity and timeliness:
  - Quarterly GDP estimates by economic activity at constant prices and current prices are published 52 days after the end of the reference period.
  - National accounts (Oferta y Demanda Global Trimestral) SDDS timeliness example: MEX Timeliness: 53D (table entry).
  - Production index: MEX Timeliness: NLT 42D.
  - Preliminary annual goods and services accounts: published within nine months of the end of the year.
  - Preliminary institutional sector accounts: published within 11 months.
  - Revised versions published 16 and 18 months after the end of the year, respectively.
  - Complete supply and use tables published for 2008; similar tables planned for 2012.
- Internal consistency:
  - Quarterly estimates are reconciled with annual estimates except for agriculture.
  - Agriculture: work-in-progress recorded quarterly but not included in annual estimates (except perennial crops), producing inconsistency.
  - Any discrepancy between annual rates of change in GDP and four-quarter totals is insignificant, no more than a tenth of a percentage point.
  - Integrated accounts: discrepancies between capital and financial accounts are large enough to be a concern; flow of funds table is not reconciled with BM's compilation.
- Revision policy and practice:
  - Well-established cycle of production and current revisions; a dissemination calendar is posted in December each year.
  - Quarterly data for the current year are revised with each new quarter release; detailed explanations of revisions are inadequate and revision studies are not publicly detailed beyond major changes.
  - Introductions to publications explain that data for the last two years are preliminary.

### Accessibility and metadata
- Data accessibility: quarterly data are simultaneously released in a press release and on the INEGI website; seasonally-adjusted GDP series are published; more detailed non-confidential data available on request.
- Metadata accessibility: metadata available on the Internet and in INEGI publications but lacks sufficient detail on compilation methods for advanced users.
- Assistance to users: contact details provided; customer service unit monitors users’ requests and provides prompt response (all user enquiries are responded to within 78 hours).

### Users’ views — survey findings
- Survey: 26 responses from private sector, banks, consulting companies, academic institutions, and government agencies.
- Overall satisfaction:
  - 79 percent of respondents felt official statistics of Mexico are better than those of other countries in the region.
  - 8 percent felt they are at least as good as those of other countries in the region.
- Accessibility and usage:
  - Average satisfaction with ease of access to data: 81 percent.
  - 88 percent indicated that they refer to official descriptions of the sources and methods.
  - Main uses: research, comparison with other countries, econometric models and projections, and short-term decision making.
- Quality elements:
  - 88 percent believe the coverage of the national accounts is satisfactory.
  - 81 percent think the detail and frequency of the data are satisfactory.
  - 85 percent were generally satisfied with methodological soundness.
  - 58 percent gave medium scores regarding availability of information on revisions.
- User concerns: long lags in seasonally-adjusted data, inconsistency across periodicities, lack of long time series, timeliness of quarterly regional GDP in some instances, and difficulty locating metadata on the website.

### Coordination with the Bank of Mexico (BM) — actions and planned implementations
- INEGI coordinates with BM to strengthen consistency between the Balance of Payments and the Rest of the World Account and to conform BOP statistics to the sixth edition of the Balance of Payments and International Investment Position Manual.
- Key response actions planned or under evaluation:
  - Agriculture: evaluate ENA 2012 and ENA 2014 results to assess feasibility of supply and use improvements for 33 products (CAB 2013).
  - Wholesale and retail inventories: evaluate EAC redesign to incorporate inventories into annual national accounts from CAB 2013; consider inventory questions in monthly surveys while safeguarding timeliness.
  - FISIM: study including opening balance in average stock and treatment of subsidized loans from Development Banks to record subsidies as current transfers; analysis to consider BM adoption of sixth edition BPM changes.
  - BI ratio: INEGI considered IMF recommendation to use the BI ratio of the fourth quarter of the previous year not applicable; will continue to use BI annual average adjustment factor.
  - Taxes and subsidies on products at constant prices: recommendation adopted for review; analysis being evaluated for CAB 2013.
  - Government consumption and investment: develop quarterly accrual measures and complete estimates of CFC for general government; compilation of capital and CFC series to be evaluated for incorporation as soon as possible.
  - Revisions and consistency: collect information to document large revisions and calculate balanced supply and use tables yearly; investigate inconsistencies between capital and financial accounts for adoption in CAB 2013.
  - Public finance reconciliation: joint reconciliation with Ministry of Finance to explain differences between general government saving/investment and Ministry of Finance figures; scheduled as part of harmonization proposals.
  - Webpage and seasonal adjustment: strengthen staff capacity for seasonal adjustment, evaluate procedures to minimize inconsistencies, and associate dissemination of short-term products with the official data release calendar.

### Staff recommendations — cross-cutting and national accounts (selected)
- Cross-cutting:
  - Conduct regular reconciliation exercises to verify consistency among macroeconomic datasets, particularly between government finance and national accounts statistics.
  - Work with the Bank of Mexico (BM) to maintain consistency as BM makes changes in the BOP statistics to conform with the sixth edition of the Balance of Payments and International Position Manual.
- National accounts:
  - Assign compilation of seasonally adjusted series of national accounts to the National Accounts Directorate (DGACN) to avoid delays and improve consistency.
  - Include a module on monthly/quarterly costs for the agricultural cycle in the 2014 Agricultural Survey to obtain data to calculate quarterly agricultural work-in-progress.
  - Standardize imputation methods across surveys and use the cluster analysis technique for imputations.
  - Explain in more detail the compilation methods and causes of revisions in INEGI’s national accounts publications; include discussion of sources of largest revisions in press releases.
  - Develop complete measures of changes in inventories by including trade industries and raw materials and collecting quarterly survey data; incorporate inventory valuation adjustments where appropriate.
  - Research and, if needed, implement under-reporting adjustments for household surveys to address informal sector coverage.
  - Develop methods to measure quarterly government consumption on an accrual basis and ensure government investment estimates reflect changes in work-in-progress.
  - Include intermediate inputs questions in monthly manufacturing surveys.
  - In calculating FISIM, include the opening balance in the average stock of loans or deposits; treat subsidized loans from Development Banks by measuring FISIM on arm's-length rates and recording corresponding transfers.
  - Develop complete estimates of consumption of fixed capital (CFC) for general government and include CFC in measures of government output.
  - Calculate volume index for net taxes on products by taking into account changes in product mix or by applying base-year tax rates to transaction volumes.
  - Use the BI ratio of the fourth quarter of the previous year to avoid a step problem in the first quarter.
  - Put in place procedures to ensure consistency between seasonally-adjusted estimates and establish a schedule for publishing seasonally adjusted data.
  - Calculate balanced supply and use tables yearly to verify internal consistency.
  - Publish a reconciliation showing sources of differences between general government saving and investment in national accounts and Ministry of Finance figures, jointly with the SHCP.
  - Improve website functionality: provide an index by keyword of the available SCNM series and ensure significant newly available data receive additional publicity.
  - Post responses to the most common questions on a national accounts “frequently asked questions” (FAQ) page.

### Selected periodicity and timeliness entries (Appendix I)
- National accounts (Oferta y Demanda Global Trimestral): SDDS: Yes; Periodicity: Q; Timeliness: 1Q; MEX Timeliness: 53D
- Production index (Indicador mensual de la actividad industrial): SDDS: Yes; Periodicity: M; Timeliness: 6W (1M encouraged); MEX Timeliness: NLT 42D
- Forward-looking indicators (indicadores adelantados...): SDDS: No; Periodicity: M or Q; Timeliness: 1M or 1Q; MEX Timeliness: 3W NLT 8D; Comment: Synthetic index is disseminated with 65D lag
- Labor market Employment (ENOE): SDDS: Yes; Periodicity: Q; MEX Periodicity: M; Timeliness: 1Q; MEX Timeliness: NLT 25D
- Price index: Consumer prices: SDDS: Yes; Periodicity: M; Timeliness: F; MEX Timeliness: 1M 10D

*Source: 1. Data Quality Assessment Framework 2012—Summary Results; 2. Working with the Bank of Mexico (BM) to maintain consistency as BM makes changes; 4. Serviceability; 26. A survey of users of the accounts conducted by INEGI and discussions with users; 0.1 Legal and institutional environment; 0.2 Resources; 1. Assurances of Integrity; 2. Methodological Soundness; 2.3 Classification/sectorization; 3.2 Assessment of source data; 3.3 Statistical techniques; 3.4 Assessment and validation of intermediate data and statistical outputs; 3.5 Revision studies; 5. Accessibility; 5.2 Metadata accessibility (IMF ROSC data module for Mexico).*

### 1. Data Quality Assessment Framework 2012—Summary Results  ____________________________________  8

### 1. Data Quality Assessment Framework 2012—Summary Results

### Overall assessment — key findings
- Mexico has been a subscriber of the Special Data Dissemination Standard (SDDS) since August 1996, posting metadata on the Fund’s Dissemination Standards Bulletin Board (DSBB) in March 1998.
- Mexico is in observance of the SDDS, meeting specifications for data coverage, periodicity and timeliness, and the dissemination of advance release calendars.
- Mexico avails itself of a flexibility option on the timeliness of general government or public sector operations.
- This ROSC data module is a reassessment of the 2010 exercise applying the IMF’s Data Quality Assessment Framework (DQAF May 2012) and covers the national accounts.
- National accounts statistics are generally of a high quality and adequate to conduct effective surveillance.
- The mission found a high degree of quality awareness, professionalism, and integrity at the INEGI.
- Institutional changes under the Law of the National System of Statistical and Geographic Information (LSNIEG) created the SNIEG with oversight by the National Statistical Council and specialist committees, positioning INEGI as an autonomous coordinator of the SNIEG.
- Improvements observed since 2010 include: consultation with users, inter-institutional coordination, data coverage, INEGI website accessibility, introduction of 2007 NAICS, implementation of SCN 2008, and rebasing to 2008.

### Main shortcomings and areas for improvement
- Need for greater consistency in data recording across agencies and for regular inter-institution reconciliation exercises to resolve data discrepancies.
- Specific discrepancies highlighted:
  - Fixed capital formation of state and local governments contributes to significant divergence between investment measures in government finance statistics and national accounts.
  - Discrepancy between the deficit published by the Finance Ministry and the estimate of government saving and investment in the national accounts.
- Wider adoption of international statistical standards (for example GFSM 2001) recommended to promote consistency between SHCP’s and INEGI’s government data.
- Resource and operational concerns:
  - Resources are adequate overall but 32 percent of staff are contractual, potentially affecting continuity if contracts are not renewed.
  - Resource constraints exist to maintain the National Survey of Micro-Business (planned every two years) and the agricultural census (planned every 10 years), and to compile seasonally-adjusted series in a timely fashion.
- Methodological and data issues:
  - Most government transactions at quarterly frequency are recorded on a cash rather than accrual basis (deviation from best practice).
  - Agriculture is not benchmarked to the annual data: agricultural work-in-progress is estimated quarterly but not in annual estimates.
  - The average benchmark-to-indicator ratio (BI) of the previous year is used for aligning quarterly estimates to annual data instead of the BI of the fourth quarter of the previous year, creating a step problem in the first quarter.
  - Estimates of changes in inventories are incomplete: raw materials inventories and inventories held in wholesale and retail trade are not included.
  - Single indicator methods with fixed coefficients applied to volumes are used to estimate value added for goods-producing industries; double deflation is used for services.
  - Taxes and subsidies on products at constant prices are estimated by applying the GDP growth rate (a deviation from best practice).
- Serviceability and accessibility:
  - Need to improve consistency across datasets; reconciliation of data does not appear to be done on a regular basis.
  - Need to provide more information to users on sources of revisions — user consultations support this need.
  - Timeliness of general government operations remains an exception to meeting SDDS; annual integrated economic accounts by institutional sector timeliness has improved but still needs improvement.
  - Accessibility improved since 2010: marked improvement in assistance to users, range and detail of indicators, downloadable time series, and key statistics presentation. However, metadata on actual compilation practices is insufficient and some information is hard to locate on the website.

### DQAF summary results — national accounts (Table 1)
- Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable.
- Dimension 0. Prerequisites of quality
  - 0.1 Legal and institutional environment: O
  - 0.2 Resources: LO
  - 0.3 Relevance: O
  - 0.4 Other quality management: O
- Dimension 1. Assurances of integrity
  - 1.1 Institutional integrity: O
  - 1.2 Transparency: O
  - 1.3 Ethical standards: O
- Dimension 2. Methodological soundness
  - 2.1 Concepts and definitions: O
  - 2.2 Scope: O
  - 2.3 Classification/sectorization: O
  - 2.4 Basis for recording: LO
- Dimension 3. Accuracy and reliability
  - 3.1 Source data: LO
  - 3.2 Assessment of source data: O
  - 3.3 Statistical techniques: LO
  - 3.4 Assessment and validation of intermediate data and statistical outputs: O
  - 3.5 Revision studies: O
- Dimension 4. Serviceability
  - 4.1 Periodicity and timeliness: O
  - 4.2 Consistency: LO
  - 4.3 Revision policy and practice: LO
- Dimension 5. Accessibility
  - 5.1 Data accessibility: O
  - 5.2 Metadata accessibility: LO
  - 5.3 Assistance to users: O

### Assessment of Dimensions 0 and 1 — INEGI (highlights from Table 2)
- Legal and institutional environment:
  - INEGI operates under the LSNIEG (published April 2008) with exclusive responsibility for conducting the national census and integrating the system of national accounts (Article 59).
  - Under Article 26 of the Constitution INEGI has technical and managerial autonomy.
  - Confidentiality guaranteed by LSNIEG Chapter V and by the Federal Law of Administrative Responsibilities of the Public Servants (March 2002).
  - Article 45 (1) obliges system respondents to provide accurate and timely data; penalties exist for refusal or falsification.
- Resources:
  - Human and financial resources allocated to national accounts generally commensurate with INEGI’s programs, though the agricultural census and national micro-business survey have financial issues.
  - Compensation levels were frozen for some years but have been rising annually according to inflation and merit considerations since 2010.
  - Thirty-two percent (32 percent) of staff are on contract.
  - Computing resources and physical infrastructure are adequate; INEGI utilizes modern information technology for compilation.
- Relevance:
  - INEGI consulted users and presented the base-year change to 2008 in 2011 and has a regular process of consultation with main users.
  - A portal on INEGI’s website provides an open communication channel for methodological and conceptual consultations.
- Other quality management, professionalism, transparency, ethical standards:
  - INEGI’s objectives and quality management arrangements are specified in Article 3 of the LSNIEG and the SNIEG strategic, national and annual programs.
  - Recruitment and promotions governed by professional competence; choice of sources and methods governed by statistical considerations.
  - Press releases indicate data are compiled under INEGI responsibility; autonomy guarantees no government access before release (though a note is sent to the Presidency the same day).
  - Staff conduct subject to Federal Law on Administrative Responsibilities and INEGI’s ethical code (Article 7 of LSNIEG).

### Methodological soundness, accuracy, serviceability and accessibility — summary remarks (Table 3 and narrative)
- Methodological soundness:
  - National accounts generally follow SCN 2008 and use updated international classifications (e.g., 2007 NAICS).
  - Most government transactions at quarterly frequency are recorded on a cash basis rather than accrual (LO for basis for recording).
- Accuracy and reliability:
  - Source data and statistical techniques are broadly sound; economic censuses every five years and extensive monthly and annual surveys support compilation.
  - For most surveys, scientific sampling techniques are used and standard errors/confidence intervals are released; imputation methods differ among surveys and cluster analysis is seldom applied.
  - Coverage of state and local government data has limitations.
  - Changes in inventories: survey data now used for manufacturing, mining and petroleum industries; omissions remain (raw materials, wholesale and retail trade inventories).
  - Use of single indicator methods with fixed coefficients for goods-producing industries; double deflation for services.
- Serviceability:
  - Data periodicity and timeliness meet or exceed SDDS requirements except for timeliness of general government operations.
  - Consistency and revision policy/practice are rated LO; regular reconciliation exercises are insufficient.
- Accessibility:
  - Data accessibility and assistance to users observed (O).
  - Metadata accessibility rated LO: detail on compilation practices insufficient and some information is difficult to locate on the website.

### Structure of the report and next steps
- Section II provides a summary assessment based on a four-part scale.
- Section III summarizes users’ views.
- Section IV contains staff recommendations.
- Appendix I summarizes practices compared to the SDDS.
- Authorities’ response and a volume of detailed assessments are presented in separate documents.

*Source: 1. Data Quality Assessment Framework 2012—Summary Results (IMF ROSC data module for Mexico).*

### 4. Serviceability

### 4. Serviceability

### Accessibility — Concepts, scope, classification, recording, and sources
- National accounts are compiled following the 2008 SNA.
- Scope
  - Annual and quarterly GDP estimates are compiled by the production and expenditure approaches at current and at constant prices.
  - Complete sequence of accounts by institutional sector is annually compiled.
  - Economic territory, production and assets boundary are in accordance with the 2008 SNA.
  - Illegal activities are not included.
- Classification/sectorization
  - Economic activities are classified according to the 2007 North America Industry Classification System, compatible with ISIC rev.4.
  - COICOP and COFOG are used to classify household consumption and government expenditures, respectively.
- Basis for recording
  - All transactions are recorded in accordance with the valuation principles of the 2008 SNA.
  - Transactions are recorded on accrual basis, except for the quarterly government accounts.
  - Work-in-progress for agriculture is not included in annual estimates.
  - Transactions between establishments from the same enterprise are recorded on a gross basis.
- Source data
  - Mexico has a comprehensive regular system of censuses and economic surveys.
  - Censuses have a five year frequency; surveys are conducted with monthly and annual periodicity.
  - Sampling frames are based on the censuses, updated annually.
  - Data on the balance of payments (BOP) are received from BM.
  - Quarterly data on the federal government and the state governments are available but on a cash basis; information on state and local governments is incomplete and not timely.
  - Most samples do not include small enterprises, but there is a special small enterprise survey.
- Assessment of source data
  - Appropriate methods are applied to validate the source data.
- Statistical techniques
  - Detailed supply and use tables were constructed for the base year of 2008.
  - Quarterly GDP by production is compiled at a quite disaggregated level.
  - GDP by expenditure is estimated independently; changes in inventories are directly measured, albeit not in a complete way.
  - Wide use of single indicator method to estimate GDP.
  - The Denton method is used for benchmarking the quarterly data, except for agriculture.
  - The BI of the previous year is used instead of the BI of the fourth quarter of the previous year.
  - Seasonal adjusted data are estimated using the X-12-ARIMA program.
  - Taxes on goods at constant prices are not properly estimated.
  - Imputation methods are not standard for all surveys and the cluster analysis technique is seldom applied.
- Assessment and validation of intermediate data and statistical outputs
  - Discrepancies, when detected, are investigated and addressed.
  - The supply and use framework is used to make the national accounts data consistent.
- Revision studies
  - Revision studies are conducted regularly, but only the most significant revisions are disclosed.
  - Explanations of revisions are inadequate.
- Periodicity and timeliness
  - Periodicity and timeliness of the national accounts exceeds the SDDS requirements.
- Consistency
  - Data are consistent for long periods.
  - With each change of the base year, the series are recalculated backward up to the previous base year period; the 2008 base data were recalculated back to 2003 for quarterly data.
  - Quarterly estimates are reconciled with the annual estimates, except for agriculture.
  - National accounts are broadly consistent with the BOP data but there are differences in the classification of services, and differences exist with the government finance statistics.
  - The flow of funds table is not reconciled with that compiled by BM.
- Revision policy and practice
  - Well-established cycle of production and current revisions, known to the general public.
  - In December, a dissemination calendar for the following year is posted on the Internet and disseminated through the press.
  - Exact release dates are provided a quarter ahead.
  - Quarterly data for the current year are revised with the release of each new quarter.
  - Seasonally-adjusted data are released with a variable lag.
  - Revisions of previous years’ data are made when the first annual estimates are published near the end of the year following the reference period.
  - There is a five-year cycle for changing the base year.
- Data accessibility
  - Quarterly data are simultaneously released in a press release containing an analysis of current-period developments and on the INEGI website.
  - Data on quarterly GDP by production with sufficient breakdown is made available on the website, along with tables of global supply and use of goods and services.
  - Seasonally adjusted GDP series are published.
  - Detailed annual estimates are compiled, but the published level of detail is not sufficient for many types of analysis and locating some kinds of information on the website can be difficult.
  - More detailed non-confidential data are made available upon request.
- Metadata accessibility
  - Metadata is available on the Internet and in INEGI publications, but lacks sufficient detail on compilation methods.
  - Summary methodologies are posted on the IMF’s DSBB and on the OECD website.
- Assistance to users
  - Some publications and the INEGI website provide contact details for the unit responsible for preparing the data and for the Consultation and Marketing Center.
  - The customer service unit of INEGI monitors users’ requests through the INEGI website and provides a prompt response.

### Users’ views — survey findings and consultations
- Survey
  - Twenty six responses were received from representatives of the private sector, commercial banks, consulting companies, academic institutions, and government agencies.
  - Survey questionnaire developed by IMF staff; mission held two general meetings with about ten users, organized by INEGI.
- Overall satisfaction and comparisons
  - 79 percent of respondents felt official statistics of Mexico are better than those of other countries in the region.
  - 8 percent felt they are at least as good as those of other countries in the region.
- Accessibility and usage
  - Average satisfaction with ease of access to data: 81 percent.
  - Official statistics most used: prices and national accounts.
  - Majority obtain official statistics from official press releases and statistical publications.
  - 88 percent indicated that they refer to official descriptions of the sources and methods.
  - Main uses: research, comparison with other countries, econometric models and projections, and analysis of current development for short-term decision making.
- Quality elements
  - 88 percent believe the coverage of the national accounts is satisfactory.
  - 81 percent think the detail and frequency of the data are satisfactory.
  - 85 percent were generally satisfied with methodological soundness.
  - 58 percent gave medium scores regarding availability of information on revisions.
  - Most respondents indicated access to the national accounts through the Internet.
- User concerns raised in meetings and comments
  - Long lags in the release of seasonally-adjusted data and inconsistency issues (monthly, quarterly and annual).
  - Lack of availability of sufficient long time series data.
  - Lack of timeliness of the indicator of quarterly regional gross domestic product in some instances.
  - Information about significant revisions.
  - Lack of quarterly regional gross domestic product.
  - Website design: difficulty in finding primary sources and specific information on metadata.

### Staff recommendations — cross-cutting and national accounts
- Cross-cutting recommendations
  - Conduct regular reconciliation exercises to verify consistency among macroeconomic datasets; in particular, between government finance and national accounts statistics.
  - Work with the Bank of Mexico (BM) to maintain consistency as BM makes changes in the BOP statistics to conform with the sixth edition of the Balance of Payments and International Position Manual.
- National accounts recommendations
  - Assign the compilation of seasonally adjusted series of national accounts to the National Accounts Directorate (DCN) to avoid delays and improve consistency.
  - Include a module on monthly/quarterly costs for the agricultural cycle in the 2014 Agricultural Survey to obtain data to calculate quarterly agricultural work-in-progress.
  - Standardize imputation methods across surveys and use the cluster analysis technique (the percentage change of the data from an establishment with similar size and technology in the same economic activity and geographic area, if available; if not, the percentage change of the activity class for the current period).
  - Explain in more detail the compilation methods and causes of revisions in INEGI’s national accounts publications.
  - Develop a complete set of measures of changes in inventories by bringing in trade industries and raw materials and by collecting data in quarterly surveys; incorporate inventory valuation adjustments into procedures for making current price estimates of production or expenditures, as appropriate.
  - Undertake research on the need for under-reporting adjustments for household surveys on income from informal activities and some kinds of expenditures.
  - In the quarterly accounts, develop methods to measure quarterly government consumption on an accrual basis and ensure estimates of government investment reflect changes in work-in-progress.
  - Include questions on intermediate inputs in monthly surveys of manufacturing industries to improve quarterly and preliminary annual estimates of intermediate inputs.
  - In calculating FISIM, include the opening balance in the average stock of loans or deposits.
  - For subsidized loans from Development Banks, measure the output of FISIM based on arms-length rates charged on similar loans to calculate the subsidy on the interest rate and record a current transfer from the Development Bank to the government to finance the subsidy.
  - Develop complete estimates of consumption of fixed capital (CFC) for general government and include the CFC expense in the measure of government output (and the measure of output of nonmarket producers whose output is based on expenses).
  - Calculate the volume index for net taxes on products in a way that takes account of changes in the mix of products subject to the taxes (either apply volume indexes for each type of taxed good or import to separate base year estimates, or estimate volume measures of taxes/subsidies by applying base-year-tax/subsidy rates to the volume of transactions subject to a specific tax/subsidy).
  - In annual accounts for agriculture, develop estimates of carry-over work-in-progress for short-lived crops to allow agriculture to be included in quarterly-to-annual benchmarking.
  - Use the BI ratio of the fourth quarter of the previous year to avoid a step problem in the first quarter.
  - Put in place procedures to ensure consistency between seasonally-adjusted estimates, including consistent identification of outliers and assumptions used in estimating seasonal factors; decisions should be reviewed for reasonableness by an economist with expertise in national accounts.
  - Calculate balanced supply and use tables on a yearly basis to verify internal consistency.
  - Investigate inconsistencies between the capital accounts and the financial accounts.
  - Publish a reconciliation showing the sources of differences between general government saving and investment in the national accounts and the deficit and investment figures published by the Ministry of Finance, jointly with the SHCP.
  - Publish more detailed information on products and on expenditures of households as estimated in the framework of the national accounts.
  - Improve website functionality: provide an index by keyword of the available SCNM series and ensure significant newly available data receive additional publicity.
  - Establish and announce a schedule for publishing the seasonally adjusted data.
  - Provide detailed information on calculation procedures, either in metadata documents or in analytical background papers or working papers.
  - Post responses to the most common questions on a national accounts “frequently asked questions” (FAQ) page.
  - Investigate and reconcile flow of funds discrepancies and differences with BM’s compilation.

### Appendix I — Practices compared to the SDDS (selected periodicity and timeliness entries)
- National accounts (Oferta y Demanda Global Trimestral)
  - SDDS: Yes; Periodicity: Q; Timeliness: 1Q; MEX Timeliness: 53D
- Production index (Indicador mensual de la actividad industrial)
  - SDDS: Yes; Periodicity: M; Timeliness: 6W (1M encouraged); MEX Timeliness: NLT 42D
- Forward-looking indicators (Indicadores adelantados, encuesta cualativa del sector manufacturero, encuesta mensual de opinión empresarial, confianza del consumidor)
  - SDDS: No; Periodicity: M or Q; Timeliness: 1M or 1Q; MEX Timeliness: 3W NLT 8D; Comment: Synthetic index is disseminated with 65D lag
- Labor market: Employment (ENOE)
  - SDDS: Yes; Periodicity: Q; MEX Periodicity: M; Timeliness: 1Q; MEX Timeliness: NLT 25D
- Labor market: Unemployment (ENOE)
  - SDDS: Yes; Periodicity: Q; MEX Periodicity: M; Timeliness: 1Q; MEX Timeliness: NLT 25D
- Wages/Earnings (Índice de Remuneraciones Medias reales por persona ocupada en la industria manufacturera)
  - SDDS: Yes; Periodicity: Q; MEX Periodicity: M; Timeliness: 1Q; MEX Timeliness: 2M
- Price index: Consumer prices
  - SDDS: Yes; Periodicity: M; Timeliness: F; MEX Timeliness: 1M 10D
- Price index: Producer prices
  - SDDS: Yes; Periodicity: M; MEX Periodicity: M; Timeliness: 1M NLT 10D

*Source: _cr15176 - 4. Serviceability (IMF Report on the Observance of Standards and Codes—Data Module, Mexico).*

### 2.      Working with the Bank of Mexico (BM) to maintain consistency as BM makes changes

### 2.      Working with the Bank of Mexico (BM) to maintain consistency as BM makes changes

### Coordination with the Bank of Mexico (BM)
- The Institute acts as coordinator of the SNIEG and holds specific meetings with Bank of Mexico staff to strengthen consistency between the Balance of Payments and the Rest of the World Account of the System of National Accounts of Mexico.
- The work aims to conform Mexico's BOP statistics with the sixth edition of the Balance of Payments and International Investment Position Manual.

### Response on National Accounts — key actions and planned implementations
- Agriculture: 
  - National agricultural surveys (ENA) 2012 and 2014 covered production and characteristics of agricultural and livestock production units, providing information on major crops and livestock species, production costs and machinery and related equipment for a period covering two main agricultural crops short cycle.
  - The results of ENA 2012 and 2014 will be evaluated and taken into account for agricultural crops and animal species to assess feasibility of offering a broader picture of supply and use of 33 products subject to the ENA from the Base year change to 2013 (CAB 2013).
  - Recommendation 3: develop estimates of carry-over work-in-progress for short-lived crops to allow agriculture to be included in benchmarking quarterly to annual data.
- Wholesale and retail inventories:
  - The annual wholesale and retail survey (EAC) includes goods inventories for resale information requested at the end of the year of reference and the immediately preceding year, allowing calculation of changes in inventories.
  - The new statistical design of the EAC will be evaluated with valuation methods used in commercial activities to incorporate inventories into annual national accounts calculations from CAB 2013.
  - Recommendation 4 and 5: consider carefully incorporating inventory questions into the monthly wholesale and retail survey while avoiding impacts on timeliness and quality; explore best practices to estimate inventories without burdening respondents.
- FISIM and subsidized loans:
  - Recommendation 6: study including the opening balance in the average stock of loans or deposits when calculating FISIM; for subsidized loans from Development Banks, measure FISIM output based on arms-length rates and record a current transfer from the Development Bank to government to cover subsidy cost.
  - This is being studied to analyze subsidy impact and potential instrumentation from CAB 2013, considering Bank of Mexico changes adopting the sixth edition of the Manual.
- BI ratio and quarterly consistency:
  - Recommendation 7: use the BI ratio of the fourth quarter of the previous year to avoid a step problem in the first quarter — considered not applicable.
  - The adopted procedure uses one of the three methods recommended by the IMF Manual of Quarterly National Accounts and ensures consistency in short-term indicators; using the recommended method could generate distortions between monthly and quarterly indicators and between national and regional statistics.
  - BI annual average adjustment factor will continue to be used to minimize differences. The assessment covered more than 736 series observed between original and Benchmarking series for quarterly GDP and monthly national indicators and by State.
- Taxes and subsidies on products at constant prices:
  - Recommendation 8: apply either volume indexes for each type of good or apply base-year-tax rates to volume of transactions to separate base year estimates of net tax.
  - This recommendation is adopted for review; analysis is being evaluated to incorporate changes from CAB 2013.
- Government consumption and investment:
  - Recommendation 9: develop methods to measure quarterly government consumption on an accrual basis and ensure government investment estimates reflect changes in work-in-progress — to be addressed within the SNIEG working group.
  - Recommendation 10: develop complete estimates of consumption of fixed capital (CFC) for general government and include CFC expense in government output and nonmarket producers — series of collections of capital and fixed capital consumption of General Government will be compiled and evaluated for incorporation as soon as possible.
- Revisions and consistency checks:
  - Recommendation 11: investigate large individual revisions and systematic biases in preliminary estimates — information will be collected to document assessment results and present statistics to CAB 2013 for short-term and annual series.
  - Recommendation 12: calculate balanced supply and use tables showing uses by industries yearly to verify internal consistency — best practices and international recommendations will be reviewed and implementation from CAB 2013 assessed.
  - Recommendation 13: investigate inconsistencies between capital accounts and financial accounts to identify causes and reduce magnitude — to be adopted and incorporated in CAB 2013 subject to information availability.
- Public finance reconciliation and dissemination:
  - Recommendation 14: prepare a reconciliation jointly by INEGI and the Ministry of Finance to explain differences between general government saving/investment in national accounts and Ministry of Finance deficit/investment — to be part of proposals to the group on accounting harmonization and public finance statistics.
  - Recommendation 15: publish more detailed information on products and household expenditures in national accounts — from CAB 2013 around 200 strategic products are scheduled to be released with supply and intermediate and final uses as complement of supply and use tables.
  - Recommendation 16: provide detailed information on calculation procedures in metadata or analytical papers — international best practices will be reviewed to assess implementation for better user understanding.

### Response on Other Statistics and Web Page — key actions and planned implementations
- Seasonal adjustment responsibilities and procedures:
  - Recommendation 17: assign compilation of seasonally adjusted national accounts series to DGACN — INEGI is strengthening national accounts staff capacity in short-term series seasonal adjustments; capacity building to be led by current seasonal adjustment staff; alternatives will be evaluated to eliminate delays and increase breakdown level of seasonally adjusted series.
  - For main aggregates, original and seasonally adjusted figures are disseminated simultaneously.
  - Recommendation 18: design seasonal adjustment procedures to minimize inconsistencies — INEGI applies seasonal adjustment to monthly and quarterly indicators only; calendar effects (Easter week, trading days, leap year) and moving seasonality can cause inconsistencies.
  - International recommendations suggest not forcing sums/averages of seasonally adjusted data to equal original data due to potential bias; INEGI will evaluate best choice aiming for best seasonal adjustment and communication with users.
  - An inter-institutional working group on seasonal adjustment (Bank of Mexico, Ministry of Finances, Ministry of Economics, INEGI) has worked closely for three years; substantial improvement achieved and new approach applied to short-term indicators in System of National Accounts since 2013; improvement recognized in 2014 within the Committee for Macroeconomic and National Accounts Statistics.
  - X-12 ARIMA's calendar effects correction and filters imply that 100 percent consistency between monthly and quarterly series is not reasonable.
  - INEGI uses the direct approach for aggregates to avoid volatility, excessive revisions, residual calendar effects and residuary seasonality seen with the indirect approach; direct approach provides better aggregate behavior.
- Publication schedule:
  - Recommendation 19: establish and announce schedule for publishing seasonally adjusted data — since last February dissemination of short-term products is based on seasonally adjusted series and is associated with the official 2015 data release calendar.
- Agricultural surveys and costs:
  - Recommendation 20: include a module on monthly/quarterly costs for agricultural cycle in ENA 2014 — ENA is biannual; costs part has not been captured in previous agricultural census.
  - ENA 2012 obtained expenses from large producers; ENA 2014 extended expenditure collection to whole production units and sought specific crop expenditures.
  - Data from 2012 and 2014 will be reviewed and utilized nationally and by State within CAB 2013 to assess feasibility of calculating costs of harvested and in-progress agricultural production for the calendar year and propose improvements to expense/cost modules.
- State and municipal public finance data:
  - Recommendation 21: conduct a survey in important states and local governments for timely representative data — State and municipal public finance statistics are not INEGI's responsibility; INEGI captures income and expenditure of local governments on annual and monthly basis to complement General Government estimates.
  - Figures are scattered due to review and approval processes in local congresses; lack of total accounting harmonization conditions recommended sample design.
  - Using compiled public accounts for fiscal year 2014, timeliness and completeness records will be assessed and proposed within the harmonization and public finance statistics group.
- Household survey underreporting and informal sector:
  - Recommendation 22 and 23: study household surveys and ENIGH to determine income underreporting; explore best practices and international recommendations (OECD, ILO) and internal experience to develop adjustment methods to reduce discrepancies between occupation/employment surveys, biennial surveys, and household accounts; assess feasibility of applying research results in CAB 2013.
- Manufacturing intermediate inputs and survey imputation:
  - Recommendation 24: include questions on intermediate inputs in monthly manufacturing surveys — the monthly manufacturing survey was redesigned to capture establishments serving the domestic market and IMMEX establishments.
  - IMMEX establishments are questioned on expenditures on intermediate inputs of national and imported origin (raw materials, containers and packaging, freight charges and tolls, professional services, rentals, among others), facilitating calculations of value added export of the manufactured global industries (VAEMG).
  - Possibility to extend the intermediate inputs module to other establishments will be evaluated to strengthen quarterly and annual national accounts estimates.
  - Recommendation 25: standardize imputation methods across all surveys and apply cluster analysis techniques — within the Integrated System of Economic Units Surveys, imputation methods have been defined taking sector characteristics, sample design and economic variables into account.
  - Missing data imputation uses cluster analysis for establishments of same NAICS activity; evaluation is underway to extend application considering establishment size by employed personnel and income, and geographical area for all surveys in specific variables.

*Source: _cr15176 - 2.      Working with the Bank of Mexico (BM) to maintain consistency as BM makes changes*

### 26.      A survey of users of the accounts conducted by INEGI and discussions with users

### 26.      A survey of users of the accounts conducted by INEGI and discussions with users

### Key finding from the user survey
- "A survey of users of the accounts conducted by INEGI and discussions with users showed a strong demand for specific explanations for revisions."

### Recommendations on communicating revisions
- "Include a discussion of the sources of the largest or most important revisions in press releases presenting revised estimates."
- "If a longer investigation is needed to determine the cause for a large revision, the research findings should be reported when they become available."
- Implementation step: "This recommendation will be attended soon. It will be proposed to the Government Board of the Institute to supplement the guidelines currently governing policy of figures revisions, through incorporating a section dealing with the elaboration of explanatory notes on major changes in the figures when these are carried out."

### Website functionality and data publicity
- Recommendation: "The website functionality should be improved, and an index by keyword of the available SCNM series should be available on the website. Significant newly available data should receive additional publicity."
- Action noted: "Regarding an index by keyword, communication has been established with the office in charge of Data Communication, to assess the possibility of this index to the GDP and National Accounts web portal, considering the current policies and guidelines to do it. Also, significant newly available data will receive additional publicity."

### Frequently asked questions (FAQ)
- Recommendation: "Post responses to the most common questions on a national accounts “frequently asked questions” (FAQ) web page."
- Coordination: "This and the previous recommendation are complementary and they shall be adopted considering the current publishing policies of the Institute."

*Source: _cr15176 - 26.      A survey of users of the accounts conducted by INEGI and discussions with users*

### 0.1 Legal and institutional environment

### 0.1 Legal and institutional environment

### 0.1.1 Responsibility for collecting, processing, and disseminating statistics
- National accounts compiled and disseminated by the National Institute of Statistics and Geography (INEGI).
- INEGI governed by the Law on the National System of Statistical and Geographic Information (LSNIEG), published in the Official Gazette of the Federation (DOF) on April 16, 2008.
- Article 52: INEGI has technical and management autonomy, its own legal status and assets and liabilities; responsible for regulating and coordinating the National System of Statistical and Geographic Information (SNIEG).
- SNIEG guiding principles (Article 3, LSNIEG): accessibility, transparency, objectivity, and independence; purpose: provide information that is good quality, relevant, truthful, and timely.
- SNIEG objectives (Article 4): produce information; ensure timely dissemination; promote knowledge and use of information; safeguard information.
- SNIEG composition (Article 5): National Consultative Council, National Information Subsystems, and INEGI (coordinating unit).
- Article 59: INEGI has exclusive powers to carry out national censuses, establish the national accounts system, and prepare national consumer and producer price indices; terms national census or national accounts may not be used by other entities.
- Article 78: system of national accounts has status of information of national interest.
- Bylaws (DOF of March 31, 2009) govern INEGI operations and implementation of Political Constitution Article 26, the LSNIEG, and other instruments.
- INEGI economic statistics structure: General Directorate of Economic Statistics (DGEE) with four Deputy General Directorates: Economic and Agricultural Censuses; Economic Surveys and Administrative Records; National Accounts (DGACN); and Price Indices.
- Article 22 of the Bylaws: DGACN functions include directing development and updating of component national accounts calculations (annual, regional, short-term indicators, sectoral, thematic satellite accounts) in accordance with international conceptual framework; align core statistics and macroeconomic statistics; evaluate, validate, and submit constituent outputs and methodologies for dissemination.
- DGACN operational structure: four Area Directorates — National Accounts, Satellite Accounts, Short-Term and Regional Accounts, and Input-Output.

### 0.1.2 Data sharing and coordination among data-producing agencies
- Source data flow for national accounts is efficient and timely; censuses and surveys follow established timetables which are complied with rigor.
- Procedure to request external data: official letter to public and private sector; no problems with timely delivery.
- Coordination mechanisms: working groups of specialized technical committees on economic statistics; Macroeconomic Statistics and National Accounts Committee.
- Formal meetings held at least every six months; working-group communication smooth to secure timely data.
- Established arrangements and agreements for administrative data sharing with: Mexican Petroleum (PEMEX); Federal Commission of Electricity (CFE); Energy Regulatory Commission (CRE); all federal government branches; decentralized agencies for accounts and balances; Bank of Mexico (BM) for balance of payments and minimum catalogue of financial intermediaries data; Information Service of the Secretariat for Agriculture, Livestock, Rural Development, Fishery, and Food (SIAP-SAGARPA), inter alia.
- SNIEG coordination progress: sustained operation of executive committees of national subsystems — Macroeconomic Statistics; Demographic and Social; Economic; Geographic and Environmental; Government Information, Public Security and Justice — and their Specialized Technical Committees.
- Number of specialized technical committees in operation: 36 (including Committee of Macroeconomic Indicators and National Accounts).
- Most recent Economic Executive Committee meeting with published minutes: June 2nd, 2014.

### 0.1.3 Confidentiality and statistical use of individual reporters’ data
- Title Two, Chapter V of LSNIEG guarantees confidentiality; Article 37: data provided for statistical purposes shall be strictly confidential and used only for statistical purposes.
- Article 38: data from private parties or administrative/civil records must be handled with due regard to confidentiality and may not be disclosed in a personalized (nominativa) or individualized manner, nor used as evidence before administrative, fiscal, judicial, or other proceedings.
- INEGI governed by Federal Law on the Administrative Responsibilities of Civil Servants (LFRASP) (DOF of March 13, 2002); Article 8 (V) obliges civil servants to safeguard documentation and information; paragraph XII prohibits conflicts of interest involving assets, gifts, services, or employment linked to supervised entities.
- Questionnaires include confidentiality notice quoting Article 37 and Article 38; Article 46 of Chapter VI requires units to show due regard for confidentiality and privacy.
- Article 104: violations by civil servants include disclosure of confidential statistical data and violations of industrial/commercial secrets or provision of individualized data.
- Article 108: administrative penalties for disclosure — a fine of 2,000 to up to 30,000 times the minimum monthly wage valid for the federal district at the time the violation was committed.
- LFRASP Article 13: penalties for civil servants for administrative conduct failures — private or public warning; suspension; removal from office; economic penalty; temporary disqualification from public service for not less than three days and not more than one year.
- INEGI Professional Career Service (ESPC) (DOF of May 8, 2009): disciplinary measures including separation for failure to fulfill obligations (Article 38 (V) cited).
- Article 38 (2) of LSNIEG: when necessary to disclose information, it must be aggregated to prevent identification of respondents.
- Maximum published disaggregation for national accounts disclosure: three- and four-digit level of the North American Industry Classification System (NAICS).
- Access controls: respondent data kept by responsible officials; only authorized staff perform calculations and are reminded in writing of confidentiality; staff awareness of disclosure penalties.
- Physical and IT security measures: security personnel inspect entrants; DGACN IT infrastructure based on Microsoft Windows 2003 server platform (local and national); services: Windows for e-mail, Microsoft Exchange; Intranet, Microsoft SharePoint; Internet, Microsoft IIS; databases use Visual FoxPro with plans to migrate to Oracle or SQL server; around 194 microcomputers.
- Access codes on local and networked computers; users store information on hard disks or server space.
- Backup regime: weekly backups on rewritable disks; quarterly fixed backups on non-rewritable disks; network servers and backups kept in restricted areas; offsite backup maintained by Area Director.
- Confidential information destruction process: after use, information kept for five years in INEGI storage away from headquarters, then sent to national archives for further five years; at end of 10 years, document destroyed.

### 0.1.4 Legal mandate and measures to ensure reporting
- Legal powers to compile information set out in Chapter V of LSNIEG (rights and obligations of system users and respondents).
- Article 40: respondents required to provide requested information truthfully and timely.
- Article 45 (1): system respondents obliged to provide accurate and timely data and reports as requested for statistical, census or geographic purposes, and to provide required assistance.
- Examples where INEGI adapted to changes in administrative data availability:
  - Banking secrecy law: aggregated information provided to INEGI despite individual confidentiality.
  - Cancellation of decree for maquiladoras and mining legislation changes: INEGI conducted a monthly survey on mining companies; maintained compilation for surviving maquiladoras; redesigned monthly manufacturing sample to include exporting manufacturers and/or maquiladoras.
  - Tributary Administration System (SAT-SHCP) provides annual summary tax declaration of greater tax payers by economic activity for redistributive and financial transactions of Non Financial Corporations.
  - Privatization: INEGI negotiated cooperation agreements with new private owners to supply activity data.
- Enforcement provisions:
  - Article 48: INEGI may conduct inspections to verify authenticity of information when incompatible, incomplete, or inconsistent.
  - Article 49: verification inspections require a written order specifying information to be verified and documentation to be exhibited.
  - Article 106: fine for refusing or falsifying information — from 5 to 500 times the minimum daily wage valid for the federal district at the time the violation was committed.
- Enforcement practice: penalties rarely enforced; emphasis on encouraging voluntary reporting through explanation of uses, confidentiality, and importance.
- Measures to reduce respondent burden:
  - Questionnaires request only most significant information; INEGI staff available to assist.
  - Instructions and glossary provided; electronic submission of survey responses available.
  - Cooperation agreements and “ventanilla única” to avoid duplication when administrative records provided to multiple national accounts areas.
- INEGI practices: encourages cooperation by stressing importance of reliable and timely information and provides respondents with information on basic and derived statistics and consultation procedures, while respecting confidentiality.

*Source: _cr15176 - 0.1 Legal and institutional environment*

### 0.2       Resources

### 0.2       Resources

### 0.2.1    Staff, facilities, computing resources, and financing are commensurate with statistical programs
- General assessment:
  - Human and financial resources devoted to the national accounts are, in general, commensurate with the SNIEG’s mission to provide timely information of national interest and to adopt national and international standards.
  - The resources to conduct the Agricultural Census were not approved by Congress owing to other priorities; INEGI will conduct an Agricultural Survey to cover data needs, including calendar year information required for national accounts measurements.
  - The National Survey of Micro-Business (ENAMIN) currently has no budget to be conducted every two years as planned; this may affect coverage and accuracy of the national accounts for the new base year 2013.
  - Delays sometimes occur in the publication of seasonally-adjusted series; staffing problems and delegation of seasonal adjustment to a unit outside the DGEE seem to contribute to these delays.

- Recommendation:
  - Assign the compilation of seasonally adjusted series of national accounts to the DGACN as they already perform this duty in order to avoid delays in the publication of these series.

- INEGI governance and structure:
  - Governing board: one chair and four vice-chairs.
  - President supported by eight general directorates and one internal comptroller’s office.
  - General directorates include: Social and Demographic Statistics; Economic Statistics; Geography and the Environment; Government, Justice and Public Security; Coordination of the National System of Statistical and Geographical Information; Entailment and Information Service to the Public; Integration, Investigation, and Analysis; and Administration.
  - INEGI has central and decentralized (regional) units for generating, compiling and processing census and survey data, plus a central unit for calculating derived macroeconomic statistics.

- DGACN staffing and composition:
  - The directorate has 233 positions, of which there are 159 budgetary jobs and 74 extra-budgetary (on contract).
  - Thirty-two (32) percent are on contract.
  - Positions occupied: 1 deputy general director, 4 area directors, 29 deputy directors, 71 department heads, and 128 operating technicians, including secretarial and support personnel.
  - In general, staff number is related one by one to the operating technicians (52.7 percent).
  - Academic level and training:
    - 136 economists representing 58.4 percent of the total.
    - 18 computer science and engineering graduates (7.7 percent).
    - 15 mathematicians and actuaries (6.4 percent).
    - 11 administrators and accountants (4.7 percent).
    - 29 with different professional backgrounds (agronomists, sociologists, biologists, engineers, etc.), (12.4 percent).
    - 24 individuals with technical diplomas or without professional qualifications, (10.4 percent).
  - All INEGI staff are enrolled in a continuous training program regulated in the ESPC; training divided into short-term courses, training cycles and diploma courses, and facilities for specialized studies, bachelor and postgraduate degrees.
  - International training/visits: OECD, ECLAC, IMF, CEMLA.
  - On-the-job training and methodological dissemination: 1993 SNA and 2008 SNA available in Spanish and English and the consolidated 44 recommendations of the ISWGNA available via the DGACN network.

- Experience and staff stability:
  - Accumulated experience extends over many years; officers specialized in specific areas applying 1993 SNA and 2008 SNA concepts.
  - Time in service:
    - 1 to 5 years: 39.4
    - 6 to 15 years: 26.6
    - 16 to 21 years: 23.2
    - 21 years and over: 10.8
  - The average seniority is 10.6 years.
  - ESPC guarantees employment security and includes staff incentives (e.g., "employee of the month," annual cash bonus and/or an additional 10 days of vacation for meeting goals).
  - A bonus has been offered for voluntary retirement to public servants with 25 or more years, which will produce a restructuration in some areas of the DGACN.

- IT and computing resources:
  - DGACN has 245 microcomputers and 5 multifunction devices.
  - DGACN has one computer for each employee.
  - Equipment upgraded every five years; new equipment added as new staff is hired.
  - Internally developed applications and commercially available products used; staff working on SDMX for statistical data and metadata exchange.
  - A second network server installed within the DGACN to support the Directorate of Short-term and Regional Accounts and confidentiality requirements.
  - IT equipment distributed based on personnel assigned to area directorates and work programs.

- Planned staffing changes and financing:
  - Twenty six additional staff will be hired to compile quarterly sectoral accounts following recommendation15 of the Data Gap Initiatives.
  - Financial resources available to national accounts are deemed adequate and sufficient in light of the authorized work programs and compatible with INEGI resources.
  - Funding is reasonably secure for identified statistical program needs and the funding horizon is amenable for planning statistical developments.
  - DGEE has adopted budgetary austerity measures to reduce current expenses (telephone calls, travels, per diems, photocopier and paperwork) while maintaining mandated work programs.

### 0.2.2    Measures to ensure efficient use of resources are implemented
- Governance of work programs and reporting:
  - Article 5(X) of INEGI’s Bylaws: governing board shall approve the annual work program prepared on the basis of the annual program of statistics and geography and the preliminary draft annual budget.
  - Work programs and strategies disseminated through chain of command; implementation involves entire staff and includes three presentations by the director.
  - Monthly progress reports prepared for the Internal Comptroller's Office.

- Efforts to standardize and align statistics:
  - INEGI applies consistent and standardized concepts across statistics-generating areas and DGACN.
  - Within DGACN, working meetings discuss international recommendations and 2008 SNA requirements.
  - National accounts areas made suggestions to surveys and censuses areas (2014) to improve and align basic statistics with 2008 SNA framework; collaboration to facilitate census personal for data collection on energy and banking sectors via office of respondents to National Accounts data requirements.

- Performance appraisal and quality control:
  - Semi-annual “Performance Appraisal Form” covers goals achieved with respect to quality, timeliness and reliability of statistical products/works; includes a theoretical-empirical course on 2008 SNA topics and a test to measure comprehension.
  - Working procedures designed to minimize coding, editing and tabulation errors; production and coding systematized and simplified.
  - Recurrent calculations coupled with cross-checks, consistency ratios, graphs, summary tables, correlation analysis, and other statistical techniques.
  - Areas producing calculations prepare tables, graphics and data files for publication on INEGI’s website with support from the Directorate of Information Technologies.

- Oversight and audits:
  - Internal Comptroller Office carries out audits and inspection visits to verify efficiency, effectiveness and economy, and monitors compliance with laws and regulations.
  - Article 91 of the LSNIEG and Article 47 of the INEGI Bylaws: supervision of resources entrusted to an Internal Comptroller Office and an external audit appointed by the Governing Board from a shortlist made by the Superior Auditor of the Federation.

- Planning, process management and documentation:
  - Programs and working procedures reviewed regularly with DGEE planning staff; "Management of Working Procedures" activity aims to detect areas for improvement.
  - Planning unit working on a project called Control Board to integrate planning tools and monitor advances on each programmed statistics product.
  - Manuals of organization and procedures proposed for updating since May 2014 to reflect actual DGACN working areas and general rule of the Federal Public Administration (AFP).

- Priority allocation and innovation:
  - Management review process allocates resources to high priority activities: changing base year to 2008 and implementing the 2008 SNA; elaborating annual sectoral balance sheets and accounts; a new short-term economic indicator; the 2008 Input-Output Table; satellite accounts on culture and housing; maintaining and developing national accounts programs and databases.
  - Innovations to reduce time and costs: systematized processing and calculation using database managers, use of multifunction devices, reduction of paper and printing costs.
  - Release of mass dissemination documents carried out by DGACN Area Directorates supported by Area Directorate of Information Technologies and Deputy Directorates of Public Service of Information and Computing and Data Processing per institutional editorial criteria.

- International engagement:
  - IMF experts conducted visits to Mexico in 2002, 2005, 2006, 2008, and 2009 to assess methodology and systems for input-output table 2003 and new national accounts series; recommendations were tested and implemented as statistics permitted.
  - DGACN participates in technical meetings of UN, OECD, World Bank, and ECLAC and responds to questionnaires on national accounting practices with transparency.

### 0.3       Relevance
- 0.3.1    The relevance and practical utility of existing statistics in meeting users’ needs are monitored
  - User engagement channels:
    - INEGI website portal provides a permanent and open communication channel for requests on information, methodologies, and conceptual issues.
    - Specialized committees established as discussed in 0.1.2.
  - Public consultations and outreach:
    - Article 88 of LSNIEG: INEGI must make public consultations regarding information of national interest.
    - DGEE public consultation via Internet during May 2012 for change of base year from 2003 to 2008 and implementation of the 2008 SNA.
    - DGEE held five meetings with users (government agencies, consulting firms, universities, bank economists, industrial chambers) to explain and gather comments on scope changes: classifications of goods and services accounts, sectoral annual accounts and balance sheets, breakdown of quarterly GDP and supply and final demand components, monthly indicators of economic activity, and the 2008 input-output matrix.
    - Public Consultation on the “2008 Change of Base Year of the SCNM” set a precedent; feasible proposals from users were taken into account.
    - INEGI captured users’ needs through meetings for its 30th anniversary in 2011 and presentations of new statistical products (Integration of Principal Enterprises with 2008 census data in 2012; TIGIE-SCIAN correspondence table in 2012).
    - INEGI has regular annual meetings with users.
  - International user needs:
    - INEGI participates in UN, OECD and ECLAC forums; participants identify international institutions' information needs.
  - User satisfaction evaluation:
    - Article 38 (XIII) of the Bylaws: General Directorate of Entailment and Public Service of Information to propose normative dispositions for a System to Evaluate Users Satisfaction and detect SNIEG needs.
    - The Directorate made a diagnosis of national accounts status on the website and number of consultations and proposed changes that have increased accessibility and number of users several times.

### 0.4       Other quality management
- 0.4.1    Processes are in place to focus on quality
  - Article 3 of the LSNIEG: purpose of SNIEG is to provide Society and the State with good quality, relevant, truthful, and timely information to facilitate national development.
  - Quality assurance structures:
    - National Consultative Council (president of INEGI; representatives of state secretariats; judicial power; different chambers of congress; federal states; BM) provides opinions on statistical projects and proposes topics for discussion; meetings support continuous upgrade of products from a user perspective.
    - SNIEG design includes a twenty four year strategic program, a six year national program, and an annual program for statistical improvement with objectives and goals to broaden statistical products and implement international standards, approved by INEGI’s Board.
  - External quality recognition:
    - ISO 9001-2000 certification to the treatment phase of the monthly survey on private non-financial services.
    - National Price Indices certified with the ISO 9001-2008.
  - Staff training emphasizes quality and provides an infrastructure recognizing trade-offs, economies of scale, and interrelations between datasets.

- 0.4.2    Processes are in place to monitor quality during the planning and implementation of the statistical program
  - Monitoring processes:
    - Quality monitoring based on indicators assessing progress in work programs at monthly, quarterly and annual intervals relative to established goals.
    - Response rates to surveys calculated; revision history and timeliness evaluations carried out.
  - External review and continuous improvement:
    - INEGI seeks permanent review by national and international organizations to improve quality; INEGI requested a ROSC to the IMF to assess the change of base year and implementation of 2008 SNA and to provide recommendations for improvement.
  - DGEE responsibilities:
    - Assessing quality and coverage of economic information and promoting continual improvements in economic statistics.
    - Development of classifications (SCIAN 2012), conceptual frameworks, and studies of economic sectors, short-term and long-term issues, and related emerging trends pursuant to Article 20 (VIII) and Article 21(IX) of the INEGI Bylaws.
  - Reliability:
    - Efforts are made to maintain high rates of reliability in figures, which are examined by international organizations.

*Source: _cr15176 - 0.2       Resources*

### 1. Assurances of Integrity

### 1. Assurances of Integrity

### Institutional integrity
- Statistics are produced on an impartial basis; Mexico promulgated the resolutions establishing the rules of the ESPC of the INEGI (DOF of May 08, 2009).
- ESPC guiding principles: lawfulness, efficiency, objectivity, quality, impartiality, equity, independence, and competence based on merit (Article 3).
- Statutes regulate: income, training, performance assessment, incentives, separation, rights and obligations of government employees, and appeals (Article 4).
- Governance:
  - Ultimate authority is the governing board comprised of five members appointed by the president of Mexico with the approval of the senate chamber (Articles 67, 68, and 69 of the LSNIEG).
  - One member is appointed president of the INEGI and presides over the Governing Board.
  - Tenure: president of the INEGI will be six years; vice-presidents of the governing board will be eight years.
  - Tenure commencement: president’s tenure commences the first of January of the fourth calendar year of the tenure of the president of Mexico.
  - Vice-presidents’ tenures commence the first of January of the first, third and fifth year of the tenure of the president of Mexico, spread at intervals of two consecutive years.
  - Members may be selected for the post up to two times and hold their posts only during the designated time.
- Membership requirements: governing board members must be distinguished professionals in statistics, geography, or economics, and have served for at least five years in a high-level public or private post or be a recognized academic.
- Recruitment and promotion: professional competence is the basic criterion; determination governed by ESPC requiring examinations and competitions.
- Staff development: ESPC defines training as ongoing development to enhance job performance and competitiveness for vacancies.
- External engagement: meetings, conferences, and presentations with academics, consultants, industrial representatives, journalists, government officials, and representatives to publicize national accounts products.
- Publication review: national accounts publications are carefully reviewed and validated by DGACN management to protect INEGI professional independence and reputation.
- Research program: INEGI promotes staff research and publications in Data and Spaces to present data in a user-friendly manner.

### Choices of sources, methods, and dissemination
- Choices of sources and methods are governed solely by statistical considerations and international organization guidelines and manuals.
- Census and survey responsibilities: Deputy General Directorate of Economic and Agricultural Censuses and Deputy General Directorate of Economic Surveys and Administrative Records ensure quality, timeliness, adherence to international guidelines, and consideration of respondent costs; only relevant information is requested.
- External data sources (state secretariats, public and private enterprises): cooperative agreements prepared, ensuring quality, homogeneity, comparability, and timeliness to meet preset release dates.
- Methodology transparency: INEGI provides methodologies and technical explanations in publications and on its website, underlining professional independence while observing international guidelines.
- Article 88 LSNIEG: INEGI must define and consult publicly through the Internet the methodologies of new products or relevant changes before implementation to consider users’ comments.
- Planning and programming: INEGI Bylaws govern presentation of work plans and programs; DGACN functions include planning, organizing, identifying strategies for SCNM projects, and programming annual national accounts and short-term accounts calculations.
- Homogeneity criteria: DGEE issues criteria to confer homogeneity on processes for production and dissemination of economic statistical information.
- Disclosure decisions: governed solely by statistical considerations as defined in the National Economic Information Subsystem—specifically, Article 24 of the LSNIEG.

### Right to comment on misuse and erroneous interpretation
- INEGI is entitled to comment on errors of interpretation or misuse of statistics generated by it and issues press releases explaining its position; these are posted on the INEGI website.
- The Office of the President of INEGI monitors specialized press and other media, prepares executive summaries for internal consultation, and comments publicly and timely on erroneous interpretations or misuse in media and other fora.

### Transparency
- Legal texts: INEGI website includes the text of the LSNIEG, which informs about INEGI’s standards of confidentiality and professionalism of its president and Governing Board; the law is also available in print in Spanish. INEGI Bylaws are available to staff.
- LSNIEG content: includes the code of conduct for compilation and dissemination of official statistics, the approval process for data dissemination, and procedures to hire and remove the head of the data producing agency.
- Public contact: INEGI website contains an email address for requests and suggestions; publications include INEGI website, address, e-mail address, and phone number. INEGI has a Consultation Marketing Service unit to provide information to the public.
- Internal governmental access prior to release: INEGI autonomy guarantees no government authority has access to its statistics before public release; no government unit or public servant has access before publication.
  - Market conditions reports: on publication day a note is sent to the president of Mexico and reports are released to the press and public per INEGI’s market data release timetable.
  - Press releases indicate data prepared under INEGI responsibility, though not explicitly stating that approval of results lies exclusively with INEGI (Articles 23, 24, and 59).
- Product identification: INEGI is autonomous with its own assets and liabilities; “national census” or “national accounts” may only be used by INEGI.
  - Data are published in press bulletins bearing INEGI logo and indicating INEGI prepared the information; bulletins are posted on INEGI website and promoted via Facebook, Twitter, and RSS.
  - Annual publications follow a standard format; some areas are transitioning to electronic publications following normative guidelines.
  - Joint publications clearly identify each institution’s contribution; national accounts data are the exclusive responsibility of INEGI and publications bear participating institutions’ logos consistent with INEGI editorial standards. Federal Copyright Law mandates citation of information sources.

### Advance notice of methodological changes
- Substantive changes in source data and/or methodology are announced in advance by Internet, meetings, seminars, and publications, which specify sources and methods and note whether data are preliminary or revised.
- Press notes specify changes made in publications.
- Change of base year practice: when base year changes, most recent methodological standards are adopted (example: change of base year to 2008).
- Public campaign: prior to application of changes, INEGI undertakes a public campaign on scope and conceptual and methodological features via Internet, presentations, consultations to public and private institutions, universities, state secretariats, and, depending on project type, press and multimedia (art. 88 LSNIEG).

### Ethical standards
- Code of ethics: Article 7 of the LSNIEG requires INEGI to issue a code of ethics for the SNIEG governing standards of conduct for those engaging in statistical and geography-related activities.
- Personnel conduct and penalties: INEGI personnel are subject to standards and penalties in the Federal Law on the Responsibilities of Public Servants and the LSNIEG; detailed rights and obligations are in the General Conditions of Employment on file with the “Federal Court of Conciliation and Arbitration” on February 1, 1994.
- Established standards of conduct: statistical and geographical culture, quality, excellence, cooperation, lawfulness, transparency, confidentiality, equality, integrity, respect, responsibility, solidarity, commitment, learning, leadership, and accountability.
- Management awareness and induction: management emphasizes irreproachable conduct; new workers are informed of rights and obligations, organization, procedure manuals, annual work program and quality content during induction.
- Daily practice: quality processes provide constant reminders of obligation to meet existing standards.

### 2. Methodological Soundness

### Concepts and definitions
- National accounts of Mexico are based on the conceptual framework of the System of National Accounts 2008 (2008 SNA).

### Scope
- Accounts and periodicity:
  - System includes annual, quarterly and monthly estimates.
  - Published series use 2008 as the base year.
- Supply and use tables:
  - Published annually at current and constant 2008 prices.
  - Provide GDP estimates at current and constant prices from production and expenditure approaches.
  - Tables show origin and use of products by economic activity for 259 four digit branches of the NAICS.
- Integrated economic accounts:
  - Series of integrated economic accounts for entire economy and institutional sectors from production account to financial account, revaluation account, other volume changes account, and opening and closing balance sheet accounts compiled each year and available for the series 2003–2013.
  - Project to compile quarterly sectoral accounts to implement recommendation 15 of the G-20 Data Gaps Initiative.
- Quarterly accounts:
  - Include GDP estimates at current and constant 2008 prices derived from balancing of supply and use tables; used to prepare symmetrical 2008 input-output matrices.
- Short-term indicators:
  - Monthly “Global Indicator of Economic Activity”: a volume index, weighted average percentage change (base year 2008) of indicators of growth by economic activity.
  - Monthly indicator of private consumption in the domestic market.
- Satellite accounts compiled on: Culture, Economy and Ecology, Non-Profit Institutions, Health, Non-Remunerated Household Work, and Tourism.
- Coverage and production boundaries:
  - National accounts consistent with 2008 SNA in definition of units (include Mexican government offices abroad, bonded areas, Mexican frontier workers and residents working abroad for less than one year).
  - Production boundaries consistent with 2008 SNA with a few exceptions due to data limitations.
- Own-account production:
  - For base year 2008, own-account consumption measured by indirect methods via ENIGH and ENOE.
- Illegal activities and other inclusions:
  - Production generated by illegal activities is not included completely; only prostitution is included.
  - Own-account production of capital goods is included as required by 2008 SNA.
- Assets coverage:
  - Generally in agreement with 2008 SNA: include national defense expenditures on construction and equipment potentially usable for civilian use.
  - Include work-in-progress for main agricultural products in quarterly estimates, but only for perennial crops in annual estimates.
  - Lack of adequate information precludes inclusion of valuables and historical monuments.
  - Incomplete information on intellectual property assets (patents, brands, industrial processes); 2009 economic censuses captured qualitative information on register and development of patents and payments of royalties.
  - Service activity for revenue from licensing patents, brands and franchises (533110) was included to estimate annual production of these services; supply-side data reinforced with demand-side royalty payment data from annual surveys.
- Intellectual Property Products:
  - Some demand-side information for base year 2008 available from administrative records (decentralized federal government agencies and banks) enabling initial steps toward measuring these assets.
  - Original entertainment products (movies 512111 and music recording 512210) are included.
  - Production of computer programs (541510) captured only when for sale to third parties; internal-use programs not sufficiently identified.
  - In-house research and development not identified separately; expenditures reflected in intermediate consumption for principal activities. INEGI is reviewing R&D survey data from 2008, 2010 and 2012 by INEGI and CONACYT to incorporate those results.
- Mineral exploration and subsoil assets:
  - Mineral exploration explicitly included for oil and gas exploration and perforation, and a minimum estimation for mining activities.
  - INEGI has produced estimates of equivalent crude oil proven reserves, but not of reserves of minerals.
- Other assets:
  - Water is still not measured as economic asset.
  - INEGI has estimated the part of land not occupied by buildings and structures.

*Source: _cr15176 - 1. Assurances of Integrity*

### 2.3       Classification/sectorization

### 2.3       Classification/sectorization

### 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices
- The classification of institutional units, transactions and other flows in the system of national accounts of Mexico are consistent with the recommendations of the 2008 SNA.
- The classification of economic activities is based on the 2007 North American Industry Classification System (NAICS), jointly prepared and adopted with Canada and the United States, and has a corresponding level to the International Standard Industrial Classification of All Economic Activities (ISIC) Revision 4.0 at two digits.
- The 2007 NAICS includes:
  - 1049 classes
  - 617 sub-branches
  - 304 branches
  - 94 sub-sectors
  - 20 sectors
- The INEGI is applying the 2013 NAICS in the 2014 Census and will apply it in the change of base year of the national accounts to 2013.
- For the base year 2008, product classification is a hybrid of census products and the Central Product Classification (Version 2.0) for coding products and commodities consistent with international recommendations.
- Household consumption expenditures are classified according to the "Classification of Individual Consumption According to Purpose" (COICOP).
- Government consumption is classified according to the "Classification of the Functions of Government" (COFOG).

### 2.4 Basis for recording

#### 2.4.1 Market prices are used to value flows and stocks
- Mexican national accounts record all transactions at market prices prevailing at the time the transactions take place, in accordance with the valuation principles of the 2008 SNA.
- Production is valued at basic prices; intermediate consumption is valued at purchase prices, excluding the deductible portion of the value added tax (VAT).
- Components of expenditure on final goods are valued at purchase prices, i.e., including trade margins and taxes on the corresponding products.
- Production for consumption:
  - Valued at basic prices for equivalent market production in the case of services of owner-occupied dwellings.
  - Valued at cost in the case of other products.
- Adjustments to market prices are made when transfer pricing is detected between a parent company and its subsidiaries, particularly in the automotive industry and the oil industry.
- Total exports and imports are valued at free on board (f.o.b.) prices, consistent with 2008 SNA guidelines.
- Transactions in foreign currency are converted using the mid-point exchange rate prevailing in the market at the moment they take place.

#### 2.4.2 Recording is done on an accrual basis
- Most transactions are recorded on an accrual basis.
- Work-in-progress is recorded for construction, industrial goods involving a long production process, and a portion of agriculture.
  - Agricultural work-in-progress is only recorded in the quarterly accounts; annual estimates are based on harvested crops.
- Annual data for government revenues include adjustments to payments in cash and in kind for devolutions and re-classifications to record revenues on an accrual basis.
- Cash transactions are adjusted to an accrual basis for government expenditures, though quarterly government transactions are recorded on a cash basis.
- Survey practices:
  - Survey on private services compiles rental housing data mostly on accrual basis.
  - Private education services are consumed and paid mainly on accrual basis.
- Recommendation:
  - Include a module on monthly/quarterly costs for the agricultural cycle (sowing, growth, and harvest) in the 2014 Agricultural Survey for important crops in order to obtain the data to calculate annually and quarterly agricultural work-in-progress.

#### 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices
- Transactions between establishments of the same enterprise are recorded on a gross basis, consistent with 2008 SNA guidelines.

### 3 Accuracy and Reliability — Source data (extracts)
- INEGI has a regular program of five-year economic censuses and monthly and annual surveys covering most economic activities.
- Data collection:
  - Data are collected through Tablets using pre-loaded programs that validate data entries.
- The 2009 and 2014 economic censuses collected data at the establishment level that form an enterprise.
- The National Statistical List of Economic Units (DENUE) provides sampling frames and currently includes 4,410,198 establishments; it is thoroughly updated every five years with economic census information.
- Between economic censuses, DENUE is updated with information from employer units registered by the Mexican Institute of Social Security and taxpayer units detected by the SHCP, and with reports of openings and closings detected by field agents.
- Large Establishments Monitoring (SEG) program:
  - Continuously monitors changes in large establishments using data from chamber organizations, producers' associations, public agencies, and daily media monitoring.
  - In the 2013 update, 36,268 new establishments were added to the DENUE, and 27,013 closed establishments were removed.
- INEGI has a sampling frame monitoring unit for planning fieldwork for economic censuses and surveys; sample frames are derived from economic censuses.
- Coverage and data details from economic censuses (2009 for calendar year 2008):
  - Collected detailed information at the six-digit level of the 2007 NAICS.
  - Data included output and sales per product in quantities and values; major inputs consumed in quantities and values; other production expenses; compensation separated into wages and salaries; number of persons employed; capital formation and stock of capital by type of good; own-account fixed capital formation; inventory stocks at beginning and end of period, broken down by type (finished products, work-in-progress and raw materials).
  - These data were used to elaborate supply and use tables for base year 2008 and to obtain balanced production and primary income accounts and employment for 2008, and to improve estimates on FISIM, insurance and intangible assets according to 2008 SNA.
- Annual and monthly surveys:
  - Annual surveys gather output and sales at aggregated levels (product detail available in monthly survey).
  - Intermediate consumption disaggregated by commodity is not available in the surveys but is available in censuses.
  - Annual surveys have 12 disaggregated expenditure categories (examples listed in source).
  - Annual surveys cover manufacturing, trade, non-financial private services, transport, and construction (formal sector only for construction, complemented with National Occupation and Employment Survey for informal sector).
  - Annual manufacturing surveys collect inventory data used for changes of inventories in national accounts along with agriculture, crude oil and products.
  - Monthly surveys are representative at the six-digit level but do not cover some activities and must be supplemented by special research.
  - Monthly surveys available for manufacturing, mining, trade, non-financial private services, and construction companies.
  - Monthly manufacturing surveys provide output and sales by product in values and quantities, compensation, persons employed, and hours worked.
  - Maquiladora survey is conducted as part of Manufacturing industries but is losing respondents and representativeness.
- Sampling methods:
  - Manufacturing and trade surveys are based on deterministic samples.
  - For manufacturing in base year 2008, 240 classes of activity were selected and establishments accounting for at least 80 percent of production were identified.
  - Surveys of construction companies and some services are probabilistic.
  - Imputation methods for non-response in probabilistic surveys correct the expansion factor.
- Data collection modes:
  - Between 60 and 80 percent of data from annual and monthly surveys are collected through the Internet; the rest via e-mail and establishment visits.
- Household surveys:
  - Regular program with varying periodicity: ENEU (monthly), ENE (quarterly and annual until 2004), ENOE (quarterly and monthly since 2005), ENAMIN (second phase on national micro-business), ENIGH (biennial Household Income and Expenditure Survey), and non-regular ENDID.
  - ENIGH is nationally representative, multi-stage random sample, provides estimates of household expenditure disaggregated into 700 groups of goods and services.
  - ENIGH traditionally collects data over a three-month period (August 21 to November 28), which may introduce seasonality; a whole-year Household Expenditure Survey was conducted in 2012 (INEGI website continues to refer to three-month collection period).
  - INEGI staff participates in a working group studying alternatives to eliminate disparities between household survey results and national accounts; a project is being considered to adjust and incorporate survey results into national accounts.
  - Households tend to underreport income; INEGI adjusts reported income by a percentage of underreporting to avoid bias in informal sector estimates and reduce statistical discrepancy between net lending from the capital account and the financial account.
- Recommendation:
  - Study the results of the household surveys and the ENIGH to determine the extent of income underreporting and, if necessary, adjust output, compensation of employees and mixed income of the household sector to improve coverage of the informal sector and to reduce overall discrepancies between the biennial surveys and the annual national accounts.
- Government finance data:
  - INEGI receives almost complete annual data on government finance, including budgetary performance and non-budgetary expenditures of the federal government and the social security system, but the information is not harmonized to the IMF’s Government Finance Statistics Manual 2001.
  - Federal government revenues and expenditures (including non-budgetary items) are obtained in detailed form from the SHCP.
  - SHCP does not provide data on state and local governments; available data on these governments are sometimes incomplete and subject to long delays.
  - INEGI compiles "State and Municipal Government Finance" statistics based on information obtained directly from each entity's finance secretariat and the government of the Federal District.
  - Quarterly data on a cash basis are available for the federal government only.
- Recommendation:
  - Conduct a survey to the most important states and local governments in order to obtain timely and representative data on these institutional units.
- Adequacy of quarterly indicators:
  - Available quarterly data are considered adequate for compiling reliable estimates of GDP by industrial activity.
  - Monthly surveys conducted for manufacturing, construction, trade, and nonfinancial private services.
  - For agriculture, forestry and fishery and mining, monthly information is obtained from administrative records.
  - For the financial sector, income and financial statements are received from BM.
  - For services not covered by surveys, special research projects are conducted periodically.
  - In short, there are adequate indicators available for each economic activity at the six-digit level.
  - Quarterly GDP by expenditure adapts to availability of periodic information from economic surveys, foreign trade and balance of payments statistics, price indices, and administrative records.
  - Household consumption and gross fixed capital formation are estimated through the commodity flow approach.
  - Stocks of inventories at beginning and end of year are investigated in the annual manufacturing survey; for quarterly estimates only goods producing industries data are used as part of QGDP by expenditure.
- Recommendation:
  - Collect and make use of data on inventories in quarterly or monthly surveys of the wholesale and retail trade industries.

### 3.1.2 Source data reasonably approximate the definitions, scope, sectorization, classifications, valuation, and time of recording required
- Source data reasonably approximate the concepts, definitions and scope required for compiling national accounts.
- High level of disaggregation in source data allows corrections on classifications.
- Valuation adjustments are required for manufacturing survey data because output values are reported at producer prices and not at basic prices.
- Pilot tests have been conducted to ensure collected data will allow compilation according to international guidelines.
- Coverage of total economic activities (in terms of value added) by all data sources is good; coverage within most important industrial groups is generally 85 to 95 percent.

- Economic Activity coverage and non response (values from source):
  - Agriculture 92.0 8.0
  - Petroleum 100.0 0.0
  - Mining 98.0 2.0
  - Manufacturing 88.8 11.2
  - Refining and Petrochemical 100.0 0.0
  - Electricity and Water 100.0 0.0
  - Construction 87.8 12.2
  - Domestic Trade 90.9 9.1
  - Financial Services 100.0 0.0
  - Non-Financial Services 89.8 10.2
  - Government Services 90.0 10.0

- Imports f.o.b.:
  - Calculations for freight and insurance were allocated applying a similar method as past change of base year, based on tariff items, weight of merchandise, distance, and resulting percentage rates used since then.
  - Further improvement depends on identifying freight and insurance on the basis of tariff items from Customs registers to allow direct allocation by product or class of activity.

### 3.1.3 Source data are timely
- In practice, data for compiling national accounts are received on time for monthly, quarterly and annual estimates.
- Data are supplied by other units of INEGI according to a strict delivery schedule reflecting the production cycle for national accounts.
- No timeliness problems with data produced by other entities except for state and local governments.
- Consumer and producer price indices are compiled by INEGI and received on time.
- Farm price indices are supplied by SAGARPA.
- Detailed foreign trade and balance of payments statistics and monetary statistics are received on time from BM and other sources.

*Source: _cr15176 - 2.3       Classification/sectorization (extracted content).*

### 3.2 Assessment of source data

### 3.2 Assessment of source data

### Routine assessment practices
- Source data—including censuses, sample surveys, and administrative records—are routinely assessed for coverage, sample error, response error, and nonsampling error.
- The results of the assessments are monitored and made available to guide statistical processes.

### Survey data validation and monitoring
- Information on sampling errors for probabilistic surveys is available, as well as on non response and imputation methods.
- Survey results are monitored and atypical values are clarified and/or corrected with the respondents.
- Surveys and censuses are audited to verify the accuracy of the individual survey data.
- Survey data are normally compared with other sources where available.
- There are around 300 validation criteria to assess survey data that are applied by INEGI staff.
  - Some validation criteria are applied in the field at the time of the interview.
  - Some are applied in the questionnaires received through the Internet while the businessman is filling it.
  - Some are applied in the applications and databases used to process the survey data.

### Administrative records and secondary sources
- Administrative records and other secondary sources are continuously evaluated by the national accounts compilers.
  - Compilers review these sources for consistency and accuracy and consult the sources on any inconsistencies.
- For international trade, there is a process for verifying consistency between foreign trade statistics, the balance of payments and customs records before they are included in the SCNM.
- Tariff item records are reviewed so that temporary and definitive exports and imports can be determined and classified properly.

*Source: 3.2 Assessment of source data*

### 3.3       Statistical       techniques

### _cr15176 - 3.3       Statistical       techniques

### 3.3.1 Data compilation employs sound statistical techniques to deal with data sources
- Compilation process includes steps for verifying source data and estimates, including checks for internal consistency and consistency with other sources; all estimates are carefully reviewed before publication.  
- Results from surveys and censuses are audited; survey results are compared with other data sources when possible.  
- For international trade, consistency checks are made between the national accounts, the balance of payments accounts and customs data files.  
- Adjustments to source data are made for differences from national accounts definitions, missing observations, incomplete coverage, or differences in classifications. Adjustment procedures include imputation for missing data and benchmarking using ancillary information.  
- Current limitations:
  - Imputations should be based on other data from the same cluster or detailed aggregates containing similar observations to the missing observation.  
  - Deterministic (non-random) surveys: imputation methods are not standard across all surveys and cluster analysis is seldom applied.  
- Specific practices and examples:
  - Special studies are carried out to improve coverage for activities lacking surveys or administrative records or that are recently occurring in Mexico.  
  - Informal sector activities are measured and included using data from household surveys and surveys of micro-businesses (ENAMIN). SCNM estimates exclude illegal activities (narcotics, psychotropic substances, contraband trade and transportation) due to lack of consistent and reliable data.  
  - Household income of employed persons in the ENOE is adjusted for under-reporting using average income levels from the ENIGH.  
  - Imputations for missing observations or incomplete coverage are usually done by projecting forward recent trends or by applying the rate of change of a broad aggregate.  
- Recommendation:
  - Standardize the imputation methods across surveys and apply the cluster analysis technique (the percentage change of the data from an establishment with similar size and technology in the same economic activity and geographic area, if available, if not, the percentage change of the activity class for the current period).
  - Undertake research on the need for under-reporting adjustments for data from household surveys on income from informal activities and some kinds of expenditures to reduce disparities.

### 3.3.2 Other statistical procedures (data adjustments, transformations, statistical analysis)
- Most source data come from surveys designed by INEGI to be consistent with national accounts definitions.  
- Econometric estimation procedures are used for hedonic adjustment and to derive relationships for extrapolating back in time for measures introduced as part of the 2013 rebasing of the national accounts.

Subsection: Production approach procedures
- Production estimates are compiled separately for approximately 800 activities at the six-digit level of the NAICS 2007 classification; grouped into 19 sectors, 79 subsectors, and 259 branches of economic activity. Correspondence with ISIC Rev.4.0 is at two digits, with minor exceptions.  
- Output in current prices: quantities multiplied by average prices. Constant price measures: average price during the base year times the quantities produced each period.  
- Extremely detailed supply and use tables and input-output matrices with more than 800 industries and products were compiled and balanced for the base year of 2008. Uses of imported intermediate inputs are tracked separately from uses of domestically produced inputs.  

Procedures for Annual Estimates:
- Preliminary annual accounts published nine months after the end of the year.  
- For goods producers: output volume measures for years other than base year calculated by multiplying base year outputs at a detailed level by corresponding quantity indexes. Intermediate consumption at constant prices calculated by assuming fixed coefficients (Leontief) technology. Current price intermediate inputs derived by multiplying constant price intermediate inputs by price indexes (usually unit value indexes).  
- For services: double deflation method employed—gross output and intermediate inputs at current prices each deflated by Laspeyres price indexes at branch or class level or based on volume indicators.  
- Government volume of output: deflate classified expenditures by input price indexes; value added at constant prices found by multiplying base year compensation of government employees by an index of government employee adjusted for number of annual working days.  
- Revised annual accounts published seven months after the preliminary version; annual survey data on intermediate inputs and complete data on state government expenditures are incorporated.  
- Intermediate consumption data compiled at the 6-digit NAICS level; base-year intermediate consumption estimated from quantities and prices of inputs consumed (no holding gains adjustment for raw material inventories required).  
- Value added at current prices for household micro-enterprises and business services: fixed coefficients assumed due to unavailable cost structure changes.  
- Inventory valuation adjustments are not estimated; change in inventories plays no role in calculation of output in most cases. However, inventory valuation adjustments may be needed to estimate intermediate inputs and shipments (sales) for commodity flow methods.  
- Stocks of fixed capital estimated by the perpetual inventory method using linear depreciation schedules; geometric depreciation noted as more common internationally. Consumption of fixed capital (CFC) estimated for almost entire economy except a large portion of general government—CFC for general government estimated only for social security subsector, causing government output to be underestimated.  
- Recording on an accrual basis with a few exceptions (notably government sector in quarterly accounts). Improved methods for real estate, rental and leasing industry introduced to reflect accruals.

Techniques used to address specific GDP issues:
- Gross operating surplus in petroleum and mining reflects that severance tax payments are rents to the government as property owner rather than taxes that reduce gross operating surplus.  
- Imputed rents for owner-occupied dwellings: based on market rental prices for similar dwellings; base-year housing stock from the 2005 count and 2010 census, incorporating capital formation estimates from construction surveys; base-year rent estimates from a detailed hedonic study including neighborhood quality and census tract measures; secondary and vacation residences included. Current estimates extrapolated with housing stock index and rent indices compiled by INEGI. New benchmark information on the 2012 housing stock is being prepared.  
- FISIM: calculated separately for loans and deposits using the reference rate approach based on an inter-bank interest rate. Annual FISIM flows measured by multiplying interest rate spreads vs reference rate by average balance of loans or deposits based on ending balances of the four quarters. Negative output recorded on subsidized loans from the Development Bank. Recommendation: include opening balance in the average stock of loans or deposits; for subsidized loans measure FISIM output based on arm's-length rates and record a current transfer from the Development Bank to the government to cover subsidy cost.  
- Non-life insurance output: premiums plus adjusted premium supplements less adjusted claims measure based on provisions for future claims; provisions may not reflect expected claims—recommended to model expected loss rates from claims history.  
- Goods sent from abroad for processing: cases where exports use almost exclusively imported inputs are assumed to represent goods for processing; production treated as part of Global Manufacturing Exports Value Added (VAEMG); net exports treated as exports of services and domestic goods inputs used in processing.  
- Wholesale and retail trade output defined as trade margin calculated from estimated flow of goods through trade establishments; changes in trade inventories are not estimated.  
- Work-in-progress recorded for construction and manufacturing of major durable equipment, and quarterly for agriculture for longer-lived plants and farm animals; annual agricultural estimates based on total harvested crops with no carryover work-in-progress.  
- Preliminary manufacturing current price output: extrapolation of volume indexes multiplied by price indexes; intermediate consumption at current prices sometimes derived by extrapolation with indexes of values reported in economic surveys (inconsistent with constant price assumption of fixed volume ratios). Revised production accounts for manufacturing use value indexes from annual manufacturing survey.  
- Recommendation: include opening balance in average stock for FISIM; treat subsidized development bank loans as transfers to government and measure subsidy via arm's-length rates.

Procedures for compiling volume measures of GDP:
- Output at constant prices obtained by extrapolation of base-year production value using Laspeyres-type volume index with a 2008 base. Indices constructed from detailed monthly output data and base-year average product prices. The Monthly Industrial Survey provides detailed monthly products differentiated at the level of 231 classes of activity (catalogue based on 2009 economic censuses, revised annually).  
- Quarterly and preliminary annual intermediate consumption at constant prices for goods producers: fixed-input ratios from base year. Services: double indicator method deflating intermediate consumption at current prices with Laspeyres price index by branch. Definitive annual accounts: intermediate inputs directly estimated from source data.  
- Government output at constant prices: sum of production costs with compensation extrapolated by employment index and intermediate purchases deflated by price indices.  
- Volume index of net taxes on products assumed identical to volume index of value added for entire economy (not consistent with international practice where base-year tax rates applied only to transactions subject to taxes/subsidies). Recommendation: apply either volume indexes by good/import subject to taxes/subsidies to separate base-year net tax estimates, or estimate volume measures of taxes/subsidies by applying base-year tax rates to volumes of transactions subject to specific tax/subsidy.  
- Trade margins at constant prices calculated by applying base-year rates to volumes of transactions channeled through trade on a detailed basis.  
- GDP constant price base: fixed 2008 base; base year updated every five years.  
- Detailed intermediate consumption estimates not available annually; full supply and use tables and input-output matrices available for base year. 2008 supply and use detail: 79 subsectors, 259 branches of economic activity and 783 activities. Annual supply and use tables not produced due to lack of estimates of intermediate uses by industries of their own output. A full supply and use table for 2012 is being developed.

Subsection: Expenditure approach procedures
- Independent estimates for household consumption and gross fixed capital formation. Household consumption and gross fixed capital formation estimated by commodity flow approach at the most detailed level possible.  
- Consumption estimation uses data on coefficients of transformation of food products, mark-ups, consumption per capita, consumer expenditures; used also to exclude consumption of foreign visitors and include consumption abroad of residents. Household survey data on consumption patterns for food, health and education used to develop controls.  
- Household consumption expenditure produced (but not published) at detailed six-digit level for domestic component and for imports; classified by COICOP categories (durable, semi-durable, nondurable goods).  
- Government consumption calculated as government output less incidental production of market goods and services; government consumption expenditure classified per COFOG.  
- Gross fixed capital formation compiled by branch of origin, type of good and institutional sector; includes intangible capital (R&D, mineral exploration, software and databases, artistic and entertainment originals, intellectual property products). Exploratory wells included in mineral exploration investment for petroleum industry.  
- Change in inventories for manufacturing, changes in assets by type, royalties and lease payments measured from annual manufacturing surveys. Administrative data used for construction by type and work-in-progress on government projects.  
- Volume index for net taxes on products based on the volume index for GDP (deviation from best practice).  
- Household consumption at constant prices: extrapolation using detailed volume indices of output or sales for domestic component and deflation of imported component by unit value indices for respective imports. Exports of goods and services deflated by suitable output price indexes or international/North American market indexes. Imports deflated with unit value import price indexes or international/North American market indexes. Government final consumption at constant prices: sum of production costs with compensation extrapolated by employment index and intermediate purchases deflated by price indices.

Specific techniques for quarterly compilation
- Quarterly GDP at current prices prepared for 668 classes of activity and published for 171 classes of activities. Classes with production value or output value of services used to prepare value indices for extrapolating base year production; lacking current values, information estimated from constant production values using representative price indices.  
- Quarterly intermediate consumption at current prices estimated using input-output ratios from annual calculations of the previous year or by estimating ratios using value changes reported in surveys for classes related to main inputs—even when some monthly survey data on intermediate consumption exist.  
- Benchmarking quarterly series to annual totals uses the Denton interpolation technique applied to output and intermediate consumption at class level; value added at current prices obtained as a residual. Benchmarking generates original (not seasonally adjusted) estimates.  
- Benchmarking problems:
  - Agriculture is not benchmarked to annual data because agricultural work-in-progress is estimated quarterly but not in the annual estimates.  
  - Average benchmark-to-indicator ratio (BI) of the previous year is used to align quarterly estimates to annual data instead of BI of the fourth quarter of the previous year. IMF Quarterly National Accounts Manual (Annex 6.2) recommends using the BI ratio of the fourth quarter to avoid a step problem in the first quarter. INEGI empirical tests found both methods usually give similar results, but the theoretically correct BI of the fourth quarter is recommended.  
- Seasonally adjustment:
  - X12-ARIMA software from the US Census Bureau used; adjusted series take calendar and public holiday effects into account. Monthly time series for 16 activities in the Global Indicator of Economic Activity (IGAE) are also seasonally adjusted using X12-ARIMA.  
  - Each time series adjusted independently, causing potential discrepancies between months and quarters and between sums of components and direct measures of aggregates. An inter-institutional working group on seasonal adjustment (BM, SHCP, SE and INEGI) established to improve communication with users, but users remain concerned about inconsistencies and seasonal adjustment processes.

Recommendations (compiled and explicit)
- In the quarterly accounts:
  - Develop methods to measure quarterly government consumption on an accrual basis and ensure estimates of government investment reflect changes in work-in-progress.  
  - Include questions on intermediate inputs in monthly surveys of manufacturing industries to improve quarterly and preliminary annual estimates of intermediate inputs.  
  - Develop complete estimates of consumption of fixed capital (CFC) for general government and include the CFC expense in the measure of government output and the measure of output of nonmarket producers whose output is based on expenses.  
  - Estimate changes in inventories for raw materials and the trade industries; collect quarterly data on changes in inventories. Incorporate inventory valuation adjustments into procedures for making current price estimates of production or expenditures, as appropriate.  
  - Apply either volume indexes for each type of good or import subject to taxes and subsidies on products to separate base year estimates of the net tax from each type of good or import, or estimate volume measures of taxes/subsidies on products by applying base-year-tax rates to the volume of transactions subject to a specific tax/subsidy.  
  - In the annual accounts for agriculture, develop estimates of carry-over work-in-progress for short-lived crops with improved annual survey procedures to allow agriculture to be included in quarterly-to-annual benchmarking.  
  - Use the BI ratio of the fourth quarter of the previous year to avoid a step problem in the first quarter.  
  - Design seasonal adjustment procedures to minimize inconsistencies between seasonally adjusted estimates; ensure identification of outliers and assumptions used in estimating seasonal factors are consistent across aggregates and component series. Important decisions and economic meaningfulness of seasonal adjustment results should be reviewed by an economist with expertise in national accounts. Improve communication with key users about seasonal adjustment procedures and outcomes.

*Source: _cr15176 - 3.3       Statistical       techniques*

### 3.4 Assessment and validation of intermediate data and statistical outputs

### 3.4 Assessment and validation of intermediate data and statistical outputs

### 3.4.1 Intermediate validation practices
- Source data used in national accounts compilation are compared with alternative data whenever possible.
- Examples of cross-checks:
  - Farm prices supplied by SAGARPA are checked against PPI prices compiled by the INEGI, and foreign trade records.
  - Manufacturing survey information is compared with data supplied by chambers of producers, producers associations, and foreign trade statistics.
  - Financial information originating from public entities and enterprises is compared with the Account of the Federal Public Treasury.
- External data sources used for validation include reports from: the Tequila Regulation Council (Consejo Regulador del Tequila), the Chamber of the Cement Industry, the Chamber of the Iron and Steel Industry, the Automobile Industry Association, National Association of Producers of Tractor-Trailers, and the National Association of Self-Service and Department Stores.
- Intermediate survey results are validated against:
  - Historical information.
  - Basic relationships between related variables (input-output ratios, relative participations).
  - Comparative analysis of growth of volume and implicit prices with similar activities on national producer index.

### 3.4.2 Assessment and investigation of statistical discrepancies in intermediate data
- Discrepancies affecting variables are investigated as necessary and measures are taken to eliminate them.
- Surveys use a validation model to detect statistical discrepancies or inconsistencies, which are investigated by checking against information sources.
- For administrative records and accounts, data providers may be asked to clarify interpretation and required transformations to obtain concepts appropriate for national accounts.

### 3.4.3 Investigation of statistical discrepancies in outputs
- The supply and use framework is used to identify potential problems and discrepancies in the GDP data.
- Detailed supply and use tables (with 783 classes of activity in the base year) are used to distinguish whether discrepancies originate from source data or from adjustments.
- Since 2013, estimates of changes in inventories have been calculated directly by activity, allowing the national accounts to show a statistical discrepancy between:
  - GDP estimates by economic activity using the production approach, and
  - GDP estimates by expenditure component using the expenditure approach.
- Sources of any large discrepancy are investigated; estimates are compared with data from other countries and with private sector estimates if available.

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### 3.5 Revision studies

### 3.5.1 Routine studies and internal use
- The national accounts office monitors differences in trend and magnitude between preliminary and definitive data caused by revised or new information in data sources.
- Studies of revisions identify sources of discrepancies and appropriate adjustment mechanisms are used.
- Revision studies are not published, but the sources of the most significant differences are disclosed in accordance with the data revision policy.
- Research results have highlighted the need to work more closely with respondents and basic statistics sources to improve content, quality, timeliness, disaggregation, coverage and concepts of basic statistics.
- Although revision studies are conducted, findings are not used to improve methods for making preliminary estimates, including detection of bias.
- Studies of major revisions are made when there is a change in base year.

Recommendations:
- Include a discussion of the sources of the largest or most important revisions in press releases presenting revised estimates. If a longer investigation is needed to determine the cause for a large revision, report research findings when they become available.
- Investigate the presence of any systematic biases in preliminary estimates through analytical studies of revision histories.

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### 4 Serviceability

### 4.1 Periodicity and timeliness

Findings:
- GDP estimates are compiled quarterly and annually and comply with the Special Data Dissemination Standards (SDDS) in coverage, periodicity, timeliness, and dissemination of advance release calendars.
- Mexico meets and in some cases exceeds SDDS timeliness requirements:
  - Quarterly GDP estimates by economic activity at constant prices and current prices are published 52 days after the end of the reference period.
  - Preliminary estimates of annual goods and services accounts are published within nine months of the end of the year.
  - Preliminary estimates of institutional sector accounts are published within 11 months of the end of the year.
  - Revised versions of these accounts are published 16 and 18 months after the end of the year, respectively.
- Complete supply and use tables were published for 2008; similar tables will be published for 2012.

### 4.2 Consistency

4.2.1 Internal consistency
- GDP estimates are derived from balances in the supply and use tables; consistent breakdowns of GDP by economic activity and final expenditure component are also derived.
- Expenditure estimates are calculated based on the flow of commodity approach and account for changes in inventories in manufacturing, mining and petroleum industries, and estimates of work-in-progress.
- Quarterly and annual GDP estimates mainly use the same concepts, definitions and classifications; source data and compilation methods are similar except for agriculture:
  - Agricultural work-in-progress is estimated quarterly but not in annual figures except for developing tree plantations and perennial crops.
  - Annual agricultural estimates are based on harvested output of all products, except for trees and perennial crops.
- Quarterly data are adjusted to annual values so that the sum of the quarters coincides with the annual figure, with the exception of agriculture.
- Any discrepancy between annual rates of change in GDP and the corresponding rate of change in four-quarter totals is insignificant, no more than a tenth of a percentage point.
- Seasonal adjustment is not done in a way that ensures consistency between all seasonally-adjusted series; small inconsistencies can be introduced.
- In the integrated accounts, discrepancies between alternative measures of net lending are expected because different source data are used in current and capital accounts and financial accounts; the discrepancies are large enough to be a matter of concern.

Recommendations:
- Calculate balanced supply and use tables that show uses by industries of inputs produced by other industries on a yearly basis to verify internal consistency.
- Investigate inconsistencies between capital accounts and financial accounts to identify specific causes and ways to reduce their magnitude.

4.2.2 Temporal consistency
- National accounts series are consistent over long periods. The current series, with base year 2008, includes estimates from 1993 to the most recent period (2013 in the case of the annual series).
- When base years change, historical revisions are made to keep series consistent over long periods:
  - For base year 2008, quarterly series were recalculated backwards to 1993.
  - For base year 2003, series underwent backward extrapolation to 1993.
  - For base year 1980, series were recalculated backwards to 1960.
- Historical revisions are also undertaken when new data become available from economic and population censuses or when source data/systems providing input are revised. Revisions and rationale are explained in publications.

4.2.3 Consistency with other frameworks
- National accounts statistics are reconcilable with balance of payments statistics; net lending/borrowing in national accounts coincides with the current account balance in the balance of payments, plus capital transfers.
- Discrepancies exist between general government saving and investment in the national accounts and government finance statistics; these may be due to broader sector coverage in national accounts.
- There is no reconciliation/harmonization process between the flow of funds table compiled by INEGI and the financial sector table compiled by BM. Treatment of the oil stabilization fund is not consistent across datasets. Regular meetings to reconcile datasets are not undertaken.
- After the IMF Technical Assistance Mission on sectoral accounts of July 2014, an agreement was made between INEGI and BM to work together more closely and evaluate mechanisms to share with INEGI the financial reports that BM provides to the IMF.

Recommendation:
- Prepare a reconciliation, jointly by INEGI and the Ministry of Finance, showing sources of differences between general government saving and investment in the national accounts and the deficit and investment published by the Ministry of Finance.

### 4.3 Revision policy and practice

4.3.1 Schedule and transparency
- Mexico follows an established and stable cycle for producing and revising national accounts; a release calendar is prepared each December for the following year and publicized through media and the INEGI website.
- When annual data-based estimates are published at the end of the year, estimates for the preceding two years are generally revised, as are quarterly estimates for those years and for the current period.
- Quarterly estimates for the current year are also revised when data for a new quarter are published.
- New publications containing results of a change in base year incorporate comments on substantive differences and improvements.
- For any extraordinary revision outside the regular cycle, an explanation is published.
- The SCNM has an established cycle of major revisions every five years, complying with international standards.

4.3.2 Identification of preliminary/revised data
- Introductions to publications explain that data for the last two years are preliminary and subject to revision.
- The preliminary nature of figures is indicated in tables, on covers of publications, and in the publicly accessible Economic Information Database of the INEGI.

4.3.3 Public availability of revision studies
- Revisions to historical series (e.g., change of base year) are documented and explanations of differences from previous series are widely publicized.
- Revision studies are generally focused on keeping users informed of key impacts in calculations for subsequent periods.

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### 5 Accessibility

### 5.1 Data accessibility

5.1.1 Presentation and detail
- Annual national accounts statistics are published in tables with absolute values and supplementary tables including percentage compositions and percentage changes, volume indices, productivity indices and implicit price indices.
- Short-term statistics offer graphs and seasonally-adjusted or trend-cycle series.
- Presentation, disaggregation and classifications of SCNM statistical product series are maintained over time to facilitate identification, comparison and consultation.
- Degree of detail depends on product type and periodicity; published detail for activities, products and expenditures is not sufficient for many analyses, but additional details are available by institutional request if confidentiality is not jeopardized.
- Results are published with a press release describing principal results.
- Timing and level of detail vary: statistical products are presented monthly, quarterly and annually, with national and regional coverage and supplemented by satellite accounts.
- Published frequencies and series:
  - Quarterly: GDP and Total Supply and Demand.
  - Monthly: Industrial Activity, Gross Fixed Capital Formation (national total); Manufacturing Output and Power Generation and Supply for the Federal States and by economic activity.
  - Annually: Goods and Services Accounts; Institutional Sectors Accounts; Gross Domestic Product by Federal State; Macroeconomic Indicators for the Public Sector; Current and Accumulation Accounts; Production Accounts by Purpose for State Governments; System of Economic and Ecological Accounts of Mexico; and satellite accounts for health, tourism, nonmarket work of households, and nonprofit institutions serving households.
- INEGI provides a directory of all SCNM statistical products listing titles, series, variables, content, and year of publication.
- Seasonally-adjusted national accounts series published include:
  - Quarterly gross domestic product, industrial activity, global indicator of economic activity, quarterly supply and demand components, and gross fixed capital formation (as a monthly index); and manufacturing output and electricity generation and distribution by federal state and by economic activity.

Recommendation:
- Publish more detailed information on products and on expenditures of households as estimated in the framework of the national accounts.

5.1.2 Dissemination media and formats
- Statistics are published simultaneously through a press release and on the INEGI website, in full text PDF format. Hardcopy is subsequently released for annual publications.
- Statistics can be downloaded as Excel spreadsheets or other formats, and key current statistics are displayed in tables and charts.
- Users report difficulties:
  - Downloading long time series can be difficult.
  - Difficulties locating series; different website entry points can lead to different places, with some searches bringing up only the 2003 base year.
  - Two places on the website present national accounts data, causing confusion.
  - Some data (e.g., sectoral accounts) are difficult to locate.
- Printed publications with annual series for base years 1970, 1980, 1993, and 2003 are offered for sale at a nominal price. The 2003 base version is currently available and disseminated in PDF format, accompanied by Excel for statistical tables and methodological texts, and in Word to facilitate consultation in the Economic Information Bank (BIE).
- Special user requests are handled. Short-term calculations are available in the Market Statistics Information System (SIEC) and in the BIE on the INEGI website.
- National accounts series can be hard to locate on the website and non-expert users may not be aware of available content.

Recommendations:
- Improve website functionality and provide an index by keyword of available SCNM series on the website.
- Give additional publicity to significant newly available data.

5.1.3 Preannounced release schedule
- A “Market Information Release Calendar” is published over the Internet; a calendar for the coming year is published each December and revision is undertaken one month before the beginning of the quarter in question. The calendar is also disseminated as an information bulletin.
- Release dates for all series of national interest are on the calendar. All annual statistical products intended for recurrent publication are recorded in the INEGI publications program.
- The INEGI “Press Room” (Sala de Prensa) hosts the release calendar, press releases and information notes.
- Seasonally-adjusted series are not always released on a preannounced schedule.

Recommendation:
- Establish and announce a schedule for publishing the seasonally-adjusted data.

5.1.4 Simultaneous release
- Data are disclosed at the same time to all users at 8:00 AM on the date established in the Market Information Release Calendar.
- On publication day, a note is sent at the same time to the Office of the President of Mexico.
- Data are published in a press bulletin bearing the INEGI logo with main results, explanatory texts, user notes, methodological notes, and main information sources; it is emphasized that the information was prepared by INEGI.
- Regular annual publications are released at the same time to all interested users on dates stipulated in the internal release calendar.

5.1.5 Data on request
- DGACN policy: provide only published information, with specific aggregations added upon formal request; greater detail can be provided if confidentiality is preserved.
- Micro data sets (stripped of identifying information) are available.
- Researchers with an approved proposal may visit INEGI and access its databases, subject to the requirement that no confidential data can leave INEGI worksite.
- Multiple channels for contacting INEGI: free Customer Service site on INEGI website, communications media service directory, national/international telephone lines (free), and some data accessible via cell phone.
- All services connected with supply of information are free of charge. Publications note that users may receive information on methodological and conceptual issues beyond the published information.

*Source: _cr15176 - 3.4 Assessment and validation of intermediate data and statistical outputs*

### 5.2       Metadata       accessibility

### 5.2       Metadata       accessibility

### 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques
- The metadata for each of the indicators are available at the INEGI website and in printed publications, where methodological details are shown providing the main information sources and general calculation methods used.
- Methodological summaries for the SDDS and OECD metadata for certain economic indicators are prepared in accordance with each agency’s specifications, and are updated as changes are introduced.
- The documentation in the metadata covers basic concepts well but gives insufficient detail on actual methods of calculation to meet the needs of more sophisticated users of the accounts.

Recommendation:
- Providing detailed information on calculation procedures, either in the metadata documents or in analytical background papers or working papers will help users to understand and interpret the data.

### 5.2.2 Levels of detail adapted to audience needs
- Brochures and tri-folds have been prepared and published on the national accounts, and a summary table of statistical series is included at the end of the regular annual publications.
- Most SCNM publications include a section with information on sources and general methods for the production accounts, supply and use tables, and institutional accounts, which is updated regularly.
- A reference is available titled “The ABCs of the System of National Accounts of Mexico.” ABCs for the goods and services account and the institutional sectors accounts are being prepared and were scheduled to be published in 2014.
- Despite these materials, documentation lacks sufficient detail on actual calculation methods for advanced users.

### 5.3 Assistance to users

5.3.1 Contact points publicized
- INEGI website and some publications provide area, e-mail, telephone number and address of persons responsible for preparing the data, and the telephone number and e-mail of the public service section of INEGI.
- Users receive personalized attention at INEGI’s Consultation and Marketing Centers (CCCINEGI) and in the national accounts office.
- Customer service records comments and information requests from CCCINEGI and from email at atencion.usuarios@inegi.org.mx, and routes users’ questions to the relevant area for response.
- Responses are monitored by customer service to make sure questions have been addressed in a timely and satisfactory manner.
- All user enquiries are responded to within 78 hours.
- Responses to the most common questions on national accounts are not available.

Recommendation:
- Post responses to the most common questions on a national accounts “frequently asked questions” (FAQ) page.

5.3.2 Publications, documents, and services (including charges)
- INEGI publishes a catalog of products and services, updated annually, organized by topic with a brief description for each title; product catalogs are available in hardcopy and online, and the price of each item is indicated clearly for the services rendered and direct sale on line.
- Products and services are offered for sale by specialized personnel at the CCCINEGI. Order forms are easy to use and contain user-friendly instructions.
- INEGI provides information via You Tube, Twitter, Facebook and RSS feeds.
- There are also 45 Information Centers of INEGI scattered around the country and toll-free numbers for users to call.

### Data Quality Assessment Framework (July 2014): relevant findings on accessibility and resources
- Resources: Resources are limited to conduct the Agricultural Census and the National Survey of Micro-Business as well as to compile seasonally-adjusted data for economic series. Thirty-two percent of the staff is on contract, which may affect the continuity of important projects if these contracts are suddenly not renewed.
- Basis for recording: Quarterly government transactions are recorded on a cash basis. Annual estimates for agriculture are based on harvested output and work-in-progress is not recorded although some attempt is made to record work-in-progress for permanent crops.
- Source data and timeliness: State and local government data are incomplete and not timely.
- Methods and deviations from standards: Method for estimating volume of taxes on products deviates from international standards; changes in inventories exclude raw materials and trade industries. The average benchmark-to-indicator ratio of the previous year is used to estimate the following year; a deviation from best practice. No treatment of interest subsidies through the development bank is made in the accounts. Imputation methods for all surveys are not standard and the cluster analysis technique is seldom applied.
- Revision practices: Revision studies are conducted, but findings are not used to improve methods for making preliminary estimates. Studies of major revisions as the change in base year are made.
- Consistency: Government statistics do not appear to be reconcilable with government finance data, because of differences of basis of recording and netted terms, and no reconciliation study has been published.
- Metadata accessibility (assessment): Methods of calculation are explained in general terms, but not at the level of detail needed to understand the specifics of the data sources and procedures.
- Assistance to users (assessment): Contact points are publicized and publications/services widely available.

### Appendix III — User survey summary (national accounts)
- Survey conducted with 26 respondents (selected users), plus meetings with selected users.
- Most users were satisfied with coverage, methodological soundness, accessibility, and frequency of national accounts statistics. Most respondents found it easy to access data.
- Areas identified for improvement:
  - Data on local and state governments are incomplete and present long lags.
  - Long lags in the release of the seasonally-adjusted data on quarterly GDP and inconsistencies in these data (monthly, quarterly and annual).
  - Lack of availability of sufficient long time series data.
  - Lack of timeliness of the indicator of quarterly regional gross domestic product in some instances.
  - Insufficient information about significant revisions.
  - Lack of quarterly levels of regional gross domestic product and regional fixed capital formation as well as on stock of fixed capital.
  - On website design, some users expressed difficulty in finding primary sources and specific information on metadata; two sites exist with data on national accounts.
  - Some users expressed an interest in more detail and in longer time series on national accounts, in explanations on significant data revisions, and emphasized the need for data on regional GDP.

*Source: _cr15176 - 5.2       Metadata       accessibility (PDF chapter/section)*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2015/_cr15176.pdf_