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MONGOLIA:

IMPLEMENTATION OF THE 2008 SNA

B.BADAMTSETSEG Director of Macro Economic and

Statistical Department, NSO

Meeting the expert group on National accounts, Geneva6-9 May, 2014

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CONTENTS

I. THE 2008 SNA IMPLEMENTATION PLAN

II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

III. CONCLUSION

IV. FUTURE ACTIVITIES

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NSDS (2011-2015) approved by Parliament

Action plan (2011-2015) to be approved by Statistical Consul

Annual work plan (yearly basis) approved by NSO chairman

I. THE 2008 SNA IMPLEMENTATION PLAN

The 2008 SNA implementation plan was the integral part of the NSDS

Next round of NSDS 2016-2020: on going process

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I. THE 2008 SNA IMPLEMENTATION PLAN

The 2008 SNA implementation plan was the integral part of the Monstat project.

Component A:

Improving policy, regulatory, and institutional framework and the organizational structure of the statistical system;

Component B:

Strengthening the statistical

infrastructure;

Component C:

Upgrading statistical data outputs; Component D:

Preparation of an IT-Plan;

Monstat Project 2009-2014

(World Bank)

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II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

Institutional structure has been set up for implementation of 2008 SNA

Inter-agency working group: Composition:

• NSO• Bank of Mongolia• Ministry of Finance• General Custom Administration Office

Objectives of the working group:• to study changes of SNA 1993 to ensure integration and harmony

between 2008 SNA, BPM6 and GFS• to implement 2008 SNA recommendations• to create necessary data sources.

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II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

Statistical infrastructure was improved• Systematic revision of data questionnaires and creation of data sources for

compilation of annual SUT.• Technological solution enabling automatic updating of BR database based on

GASR.• Introduction of sample survey to economic statistics and start of seasonally

adjusted estimations.

Latest versions of classifications were revised and applied:• ISIC-4.0• CPC-2.0• COICOP• Asset classification

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II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

Methodological foundation was set up for 2008 SNA

Methodologies on:• GDP and GNI estimation • Quarterly GDP estimation • Sector accounts compilation • SUT and IOT compilation • Balance of payment methodology revised based on BPM6

Price statistics was improved • Calculation of Regional CPI

• 2010 base year Industrial production Index

• Calculation of 2010 base year Construction Cost Index

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II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

Related estimations and surveys have been carried out.

Compilation of 2010 SUT, IOT

• First time, the results of SUT and IOT were disseminated to users in details;• Some main indicators were compiled according to SNA 2008

recommendations;

Non observed economy survey – 2010

• First time all (N1-N7) fields of NOE were covered.

• Base data of informal sector were created.

• Results of NOE were integrated to the annual GDP estimation.

• The internationally comparative data were collected.

FISIM was estimated using new methodology

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II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

Adapted Global Assessment (UNECE, Eurostat, EFTA, ESCAP) in 2013:

• The first country in the Asia-Pacific region.

• Main objectives of AGA are to evaluate NSS as a whole, assess official statistics development and provide insight and recommendations for improving the entire system, operations, statistical activities and related capacities .

Recommendation: • Recommendations were provided as a future direction to further implement

of 2008 SNA .• Recommendations were given to prioritize the 2008 SNA changes and start

to implement more important issues.

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•Basic indicators of GDP

Level 1

•GNI and other primary indicators

Level 2

•Institutional sector accounts (first step: for all institutional sectors production accounts, current, capital and financial account)

Level 3

•Institutional sector accounts (intermediate step 1: for all institutional sectors current accounts and capital account)

Level 4

•Institutional sector accounts (intermediate step 2: for all institutional sectors financial accounts)

Level 5

•Other changes of volume accounts and balance sheet

Level 6

Scope of the implementation of the SNA 2008- “Milestone”

II. CURRENT IMPLEMENTATION STATUS OF 2008 SNA

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CHANGES IMPLEMENTATION

1 Research and development

Now: R&D falls into the fixed asset classification.

Future: Firstly, to determine whether R&D has return or not. If it has return then it assumed that a statistical unit and output will be estimated by a single unit.

2Calculation of FISIM

Now: FISIM is distributed to IC and final consumption in the domestic production framework. Future: FISIM will be distributed to export and import.

3 Output of Central bank

Now: We use cost approach by using the formula: output = IC+ compensation + CFC

Future: Identify Central Bank services in 3 groups and estimate output

4Output of non-life insurance services

Now: Output is calculated by using the following formula: output = insurance premium -insurance claim + other income

Future: NSO will choose a suitable one of 3 approaches for estimating non life-insurance output.

III. CONCLUSION

1. The changes to reflect GDP estimation

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CHANGES IMPLEMENTATION

5Valuation of output for own final use by households

Now: In progress. From the Agr. census result we got more data sources of output for own final use by household of agriculture. Future: Other economic activities will be estimated.

6 Non observed economy Now: Completed.

7 Measurement of storage

Now: In progress.

Future: Separate estimation will be made for storage activity.

8 Weapons system

Now: Weapons system is classified in fixed asset according to the asset classification, hence it is included to the GFCF in GDP by expenditure approach. Future: Estimation will be improved.

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Consumption of fixed capitalNow: Deprecation rate is used for estimation.

Future: We will introduce PIM method in our 2014-2015 GDP estimation.

III. CONCLUSION

1. The changes to reflect GDP estimation (continuation)

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CHANGES IMPLEMENTATION

1 Institutional units and sectors

Now: Business register has been expanded by statistical unit based on the Establishment Census.

Future: Institutional sector’s classification will be revised and approved.

2Refinement of the treatment and definition of financial instruments and assets

Now: It is reflected in the institutional sector accounts methodology.

Asset classification was revised and approved.

Future: To study about financial instrument. Data source of financial accounts will be applied and financial account will be compiled in experimental base.

3The scope of transactions concerning government and public sector

Now: Set up inter-agency working group

Future: Plan is to translate GFS 2014, develop national methodology, improve data sources. We will do list of

public sector enterprises and classify them into appropriate

sector.

4Harmonization between concepts and classification of the SNA and BPM6

Now: “ВРM methodology” was revised and approved.

Future: Collaborate with Central Bank to ensure data quality.

III. CONCLUSION2. Other changes

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IV. FUTURE ACTIVITIES

• To formulate activities related to the SNA 2008 implementation and

incorporate into NSDS 2016-2020;

• To compile annual SUT experimentally based;

• To transfer/use Chain index;

• To improve Government Finance Statistics; and

• To compile financial accounts and other changes of volume accounts.

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Tel :(976-11) - 263152 Fax :(976-11) - 324518

Web page : www.nso.mn www.1212.mn

E-Mail : nso@magicnet.mn

THANK YOU FOR YOUR ATTENTION