Table of Contents
Foreword ix
Preface xi
List of Abbreviations xvii
Chapter 1. Introduction 1
A. Purposes of the Manual 1
B. Structure of the Manual 2
C. History of the Manual 3
D. The 2008 Revision 4
E. Revisions between Editions of the Manual 5
Chapter 2. Overview of the Framework 7
A. Introduction 7
B. Structure of the Accounts 7
C. Metadata, Dissemination Standards, Data Quality, and Time Series 16
Annex Satellite Accounts and Other Supplemental Presentations 16
Annex Overview of Integrated Economic Accounts 18
Chapter 3. Accounting Principles 29
A. Introduction 29
B. Flows and Positions 29
C. Accounting System 34
D. Time of Recording of Flows 35
E. Valuation 40
F. Aggregation and Netting 46
G. Symmetry of Reporting 48
H. Derived Measures 48
Chapter 4. Economic Territory, Units, Institutional Sectors,
and Residence 50
A. Introduction 50
B. Economic Territory 50
C. Units 52
D. Institutional Sectors 59
E. Residence 70
F. Issues Associated with Residence 75
Chapter 5. Classifications of Financial Assets and Liabilities 80
A. Definitions of Economic Assets and Liabilities 80
B. Classification of Financial Assets and Liabilities by Type of Instrument 82
C. Arrears 97
D. Classification by Maturity 97
E. Classification by Currency 97
F. Classification by Type of Interest Rate 98
Chapter 6. Functional Categories 99
A. Introduction 99
B. Direct Investment 100
C. Portfolio Investment 110
D. Financial Derivatives (Other than Reserves) and Employee Stock Options 110
E. Other Investment 111
F. Reserves 111
Chapter 7. International Investment Position 119
A. Concepts and Coverage 119
B. Direct Investment 122
C. Portfolio Investment 124
D. Financial Derivatives (Other than Reserves) and Employee Stock Options 125
E. Other Investment 126
F. Reserves 130
G. Off-Balance-Sheet Liabilities 130
Annex Positions and Transactions with the IMF 130
Chapter 8. Financial Account 133
A. Concepts and Coverage 133
B. Direct Investment 135
C. Portfolio Investment 137
D. Financial Derivatives (Other than Reserves) and Employee Stock Options 137
E. Other Investment 138
F. Reserve Assets 141
G. Arrears 141
Chapter 9. Other Changes in Financial Assets and Liabilities Account 142
A. Concepts and Coverage 142
B. Other Changes in the Volume of Financial Assets and Liabilities 143
C. Revaluation 146
Chapter 10. Goods and Services Account 149
A. Overview of the Goods and Services Account 149
B. Goods 151
C. Services 160
Chapter 11. Primary Income Account 183
A. Overview of the Primary Income Account 183
B. Types of Primary Income 184
C. Investment Income and Functional Categories 202
Chapter 12. Secondary Income Account 207
A. Overview of the Secondary Income Account 207
B. Concepts and Coverage 207
C. Types of Current Transfers 210
Chapter 13. Capital Account 216
A. Concepts and Coverage 216
B. Acquisitions and Disposals of Nonproduced, Nonfinancial Assets 217
C. Capital Transfers 219
Chapter 14. Selected Issues in Balance of Payments and International Investment
Position Analysis 222
A. Introduction 222
B. General Framework 222
C. Alternative Presentations of Balance of Payments Data 225
D. Financing a Current Account Deficit 227
E. Balance of Payments Adjustment in Response to a Current Account Deficit 230
F. Implications of a Current Account Surplus 232
G. The Balance Sheet Approach 234
H. Further Information 236
Appendix 1. Exceptional Financing Transactions 237
A. Introduction 237
B. Transfers 238
C. Debt-for-Equity Swap 238
D. Borrowing for Balance of Payments Support 239
E. Debt Rescheduling or Refinancing 239
F. Debt Prepayment and Debt Buyback 240
G. Accumulation and Repayment of Debt Arrears 240
Appendix 2. Debt Reorganization and Related Transactions 245
A. Debt Reorganization 245
B. Transactions Related to Debt Reorganization 253
Appendix 3. Regional Arrangements: Currency Unions, Economic
Unions, and Other Regional Statements 255
A. Introduction 255
B. Currency Unions 255
C. Economic Unions 261
D. Customs Arrangements 262
E. Other Regional Statements 264
Appendix 4. Statistics on the Activities of Multinational
Enterprises 269
A. Introduction 269
B. Coverage 270
C. Statistical Units 270
D. Time of Recording and Valuation 270
E. Attribution of AMNE Variables 270
F. Compilation Issues 271
Appendix 5. Remittances 272
A. Economic Concept of Remittances and Why They Are Important 272
B. Standard Components in the Balance of Payments Framework Related
to Remittances 272
C. Supplementary Items Related to Remittances 273
D. Related Data Series 275
E. Concepts 275
F. Data by Partner Economy 277
Appendix 6a. Topical Summary—Direct Investment 278
A. Purpose of Topical Summaries 278
B. Overview of Direct Investment 278
Appendix 6b. Topical Summary—Financial Leases 280
Appendix 6c. Topical Summary—Insurance, Pension Schemes, and Standardized
Guarantees 282
A. General Issues 282
B. Nonlife Insurance 283
C. Life Insurance and Annuities 286
D. Pension Schemes 287
E. Standardized Guarantees 288
Appendix 7. Relationship of the SNA Accounts for the Rest of the
World to the International Accounts 289
Appendix 8. Changes from BPM5 292
Appendix 9. Standard Components and Selected Other Items 301
A. Balance of Payments 301
B. International Investment Position 309
C. Additional Analytical Position Data 313
Boxes
Double-Entry Basis of Balance of Payments Statistics 10
Data Quality Assessment Framework 15
Examples of Identification of Direct Investment Relationships under
FDIR 102
Direct Investment Relationships with Combination of Investors 104
Direct Investment Relationship Involving Domestic Link 106
Derivation of Data under the Directional Principle 109
Components of Reserve Assets and Reserve-Related Liabilities 112
Entries Associated with Different Types of Debt Assumption 140
Example of Calculation of Revaluation Due to Exchange Rate Changes 148
Examples of Goods under Merchanting and Manufacturing Services
on Physical Inputs Owned by Others (Processing Services) 158
Recording of Global Manufacturing Arrangements 162
Numerical Examples of the Treatment of Freight Services 165
Numerical Examples of the Calculation of Nonlife Insurance Services 171
Numerical Example of Calculation of FISIM 174
Technical Assistance 182
Reinvested Earnings with Chain of Ownership 191
Numerical Example of Calculation of Interest Accrual on a
Zero-Coupon Bond 194
Numerical Example of Calculation of Interest Accrual on an Index-
Linked Bond—Broad-Based Index 196
Numerical Example of Calculation of Interest Accrual on an Index-
Linked Bond—Narrowly Based Index 197
Numerical Example of Calculation of Reinvested Earnings of a
Direct Investment Enterprise 203
Recording of Trade Transactions in Currency and Economic Unions 259
Direct Investment Terms 279
Numerical Example of Financial Lease 281
Numerical Example of Calculations for Nonlife Insurance 283
Figure
Overview of the System of National Accounts as a Framework for
Macroeconomic Statistics Including International Accounts 8
Tables
Overview of International Accounts 14
Overview of Integrated Economic Accounts 18
Link between Instrument and Functional Categories 26
SNA Classification of Institutional Sectors 60
BPM6 Classification of Institutional Sectors 61
Selected Effects of a Household’s Residence Status on the Statistics of the
Host Economy 73
Selected Effects of the Residence Status of an Enterprise Owned by a
Nonresident on the Statistics of the Host Economy 74
Economic Asset Classification 81
Returns on Financial Assets and Liabilities: Financial Instruments and
Their Corresponding Type of Income 83
2008 SNA Financial Instruments Classification (with Corresponding
BPM6 Broad Categories) 84
Link between Financial Assets Classification and Functional Categories 100
Integrated International Investment Position Statement 120
Overview of the International Investment Position 121
Overview of the Financial Account 134
Overview of the Other Changes in Financial Assets and Liabilities Account 143
Overview of the Goods and Services Account 150
Reconciliation between Merchandise Source Data and Total Goods on a
Balance of Payments Basis 161
Treatment of Alternative Time-Share Arrangements 168
Treatment of Intellectual Property 176
Overview of the Primary Income Account 184
Detailed Breakdown of Direct Investment Income 204
Detailed Breakdown of Other Investment Income 205
Overview of the Secondary Income Account 208
Overview of the Capital Account 217
“Analytic” Presentation of the Balance of Payments 226
Balance of Payments Accounting for Selected Exceptional Financing
Transactions 241
Methodological Issues Relevant for Different Types of Regional
Cooperation 256
Components Required for Compiling Remittance Items and Their Source 273
Tabular Presentation of the Definitions of Remittances 274
Correspondence between SNA and International Accounts Items 290
A9-I Currency Composition of Assets and Liabilities 313
A9-II Currency Composition of Assets and Liabilities 315
A9-III Currency Composition by Sector and Instrument 316
A9-IV Remaining Maturity of Debt Liabilities to Nonresidents 320
A9-V Memorandum/Supplementary Items: Position Data 320
Index 322
The International Monetary Fund since its inception has had a compelling interest in
developing and promulgating guidelines for the compilation of consistent, sound, and
timely balance of payments statistics. This work underpins the IMF’s other responsi-
bilities, including conducting surveillance of countries’ economic policies and providing
financial assistance that enables countries to overcome short-term balance of payments
difficulties. Such guidelines, which have evolved to meet changing circumstances, have
been embodied in successive editions of the Balance of Payments Manual (the Manual)
since the first edition was published in 1948.
I am pleased to introduce the sixth edition of the Manual, which addresses the many
important developments that have occurred in the international economy since the fifth
edition was released. The fifth edition of the Manual, released in 1993, for the first time
addressed the important area of international investment position statistics. The sixth edi-
tion builds on the growing interest in examining vulnerabilities using balance sheet data,
as reflected in the addition of international investment position to the title, and extensive
elaboration of balance sheet components. The Manual also takes into account develop-
ments in globalization, for example, currency unions, cross-border production processes,
complex international company structures, and issues associated with international labor
mobility, such as remittances. In addition, it deals with developments in financial markets
by including updated treatments and elaborations on a range of issues, such as securitiza-
tion and special purpose entities.
Because of the important relationship between external and domestic economic devel-
opments, the Manual was revised in parallel with the update of the System of National
Accounts 2008. To support consistency and interlinkages among different macroeco-
nomic statistics, this edition of the Manual deepens the harmonization with the System of
National Accounts and the IMF’s manuals on government finance and on monetary and
financial statistics.
The revised Manual has been prepared by the IMF’s Statistics Department in close
consultation with the IMF Committee on Balance of Payments Statistics, which includes
experts from a range of member countries as well as international and regional organiza-
tions. In addition, input was received from specialized expert groups, and from member
countries and international organizations during regional seminars and public comment
periods on successive drafts of the Manual. In total, representatives from virtually all IMF
member countries participated in one or more of these initiatives. The process underly-
ing the revision of the Manual demonstrates the spirit of international collaboration and
cooperation, and I would like to commend all of the national and international experts
involved for their invaluable assistance.
I would like to recommend the Manual to compilers and users. I urge member countries to
adopt the guidelines of the sixth edition as their basis for compiling balance of payments and
international investment position statistics and for reporting this information to the IMF.
Dominique Strauss-Kahn
Managing Director
International Monetary Fund
Introduction
1. The release of the sixth edition of the Balance of Payments and International Invest-
ment Position Manual (BPM6) is the culmination of several years of work by the IMF
Statistics Department and the IMF Committee on Balance of Payments Statistics (the
Committee) in collaboration with compilers and other interested parties worldwide. It
updates the fifth edition published in 1993, providing guidance to IMF member countries
on the compilation of balance of payments and international investment position data.
2. When the Committee decided in 2001 to initiate an update of the manual, it con-
sidered that, while the overall framework of the fifth edition (BPM5) remained adequate,
it needed to incorporate the numerous elaborations, clarifications, and improvements
and updates in methodology that had been identified since 1993, and to strengthen the
theoretical foundations and linkages to other macroeconomic statistics. The production of
BPM6 was conducted in parallel with the update of the OECD Benchmark Definition of
Foreign Direct Investment, and the System of National Accounts (SNA) to maintain and
enhance consistency among these manuals.
Consultative process
3. The production of BPM6 was characterized by extensive consultation. In addition to
the Committee’s oversight, there was significant outreach to the wider community.
Annotated outline
4. In April 2004, the IMF released an Annotated Outline for the update of the manual.
It included proposals and options for the style and content of the revised manual. Ques-
tions were posed on specific issues to gauge views. The outline was circulated to central
banks and statistical agencies, and was posted on the IMF website. Input was invited from
compilers and other interested parties worldwide. Altogether, 33 countries provided writ-
ten comments.
Technical expert groups
5. The Committee established four technical expert groups, with membership from
member countries and international agencies, to undertake detailed consideration of issues
and make recommendations on currency unions (Currency Union Technical Expert Group,
or CUTEG), direct investment (Direct Investment Technical Expert Group, or DITEG),
reserves (Reserve Assets Technical Expert Group, or RESTEG), and other issues (Balance
of Payments Technical Expert Group, or BOPTEG). DITEG was chaired jointly with the
OECD and had common membership and meetings with the OECD’s Benchmark Advi-
sory Group (BAG) to bring about consistent treatments. The issue papers and outcome
papers were posted on the IMF’s website. Many of the issues discussed also were relevant
for the update of the SNA, thus ensuring coordination with the Advisory Expert Group on
National Accounts (AEG), which had been created by the InterSecretariat Working Group
on National Accounts as an advisory and consultative body for the update of the SNA.
6. In addition, other specialized groups provided input on such topics as trade in ser-
vices, merchandise trade, tourism, remittances, debt statistics, and fiscal statistics. Inter-
national organizations participated in all stages of the process directly and as members of
specialized groups.
Worldwide review
7. Draft versions of the Manual were published on the IMF website in March 2007 and
March 2008. In each case, worldwide comment was invited within a deadline of three months.
About 60 sets of comments were received on the 2007 version, and 20 on the 2008 version. In
addition, other draft versions of selected chapters and of the whole document were circulated
to Committee members, other departments of the IMF, and other interested parties.
8. Furthermore, an expert review of the draft version was undertaken in January 2008
by Mahinder Gill, a retired IMF staff member and former Assistant Director, who super-
vised the drafting of BPM5, to identify any inconsistencies or omissions in the document,
and to check the consistency with the SNA.
9. During 2008, a series of nine regional outreach seminars was conducted on the Man-
ual to explain the proposed changes and encourage comments on the content and drafting.
Representatives from 173 IMF member economies, along with a number of international
agencies, participated in these seminars and provided many useful suggestions.
10. Taking account of the written comments on the March 2008 draft, inputs from
the regional seminars, and the finalization of Volume 1 of the 2008 SNA, a new draft
version was circulated to Committee members in July 2008. Following a further round
of comments by Committee members and internal IMF review, the BPM6 was adopted
unanimously by the Committee in November 2008.
Major changes introduced
11. The overall framework of the fifth edition is unchanged and BPM6 has a high
degree of continuity with BPM5. Some of the most significant changes from the last edi-
tion are as follows:
• Revised treatment of goods for processing and goods under merchanting;
• Changes in the measurement of financial services, including Financial Interme-
diation Services Indirectly Measured (FISIM), spreads on the purchase and sale
of securities, and the measurement of insurance and pension services;
• Elaboration of direct investment (consistent with the OECD Benchmark Definition
of Foreign Direct Investment, notably the recasting in terms of control and influ-
ence, treatment of chains of investment and fellow enterprises, and presentation on
a gross asset and liability basis as well as according to the directional principle);
• The introduction of the concepts of reserve-related liabilities, standardized guar-
antees, and unallocated gold accounts;
• New concepts for the measurement of international remittances;
• Increased focus on balance sheets and balance sheet vulnerabilities (including a
chapter on flows other than those arising from balance of payments transactions);
• Strengthened concordance with the SNA (such as the full articulation of the
SNA/Monetary and Financial Statistics Manual (MFSM) financial instrument
classification and the use of the same terminology such as primary and second-
ary income); and
• Extensive additions to the Manual, which is double the length of the original
because of added detail and explanation, and new appendixes (such as currency
unions, multinational enterprises, and remittances).
12. A detailed list of changes from BPM5 is provided in Appendix 8 of the Manual.
Acknowledgments
IMF staff
13. The BPM6 was produced under the direction of three Directors of the Statistics
Department (STA): Carol Carson (2001–04), Robert W. Edwards (2004–08), and Adelheid
Burgi-Schmelz (2008–). Lucie Laliberté was the responsible Deputy Director (2004–).
14. In the Balance of Payments Divisions, the editor of the BPM6 throughout the
project was Robert Dippelsman, Senior Economist, who provided the essential expert
continuity. Robert Dippelsman and Manik Shrestha, a Senior Economist and coeditor,
2002–06, were primary drafters of both the Annotated Outline and BPM6. The project
was supervised by Neil Patterson, Assistant Director (2001–06); Robert Heath, Division
Chief (2003–08); and Ralph Kozlow, Division Chief (2007–).
15. Many staff of the Balance of Payments Divisions contributed to the project.
John Joisce, Senior Economist (2001–), was closely involved in various aspects of
the project throughout. The following Senior Economist staff drafted Appendixes:
Andrew Kitili (Appendixes 1 and 2), René Fiévet (Appendix 3), and Margaret Fitzgib-
bon (Appendix 4). Jens Reinke, Economist, drafted Appendix 5. Pedro Rodriguez, an
Economist in the IMF’s Strategy, Policy, and Review Department (SPR), contributed
material for Chapter 14. In addition to staff mentioned above, the following members
of the Balance of Payments Divisions conducted the nine regional seminars in 2008:
He Qi and Emmanuel Kumah (Deputy Division Chiefs); and Paul Austin, Thomas
Alexander, Antonio Galicia, John Motala, and Tamara Razin (Senior Economists).
Within the staff of the Balance of Payments Divisions, Simon Quin (Deputy Division
Chief); Colleen Cardillo, Jean Galand, Gillmore Hoefdraad, Natalia Ivanik, Eduardo
Valdivia-Velarde, and Mark van Wersch (Senior Economists); and Sergei Dodzin, an
Economist in SPR, made notable contributions to improving the overall quality of the
BPM6.
16. Carmen Diaz-Zelaya and Marlene Pollard prepared the BPM6 drafts for publica-
tion. In addition to these staff, Esther George, Elva Harris, and Patricia Poggi supported
the preparation of papers for presentation at the Committee or technical expert group
meetings.
The Committee
17. The BPM6 was prepared under the auspices of the Committee. The BPM6 ben-
efited immensely from the expert advice of Committee members throughout the process;
their contribution was crucial to the success of the project. The Statistics Department
wishes to acknowledge, with thanks, the members and the representatives of international
organizations on the Committee during 2001–08:
Members
Australia Zia Abbasi Korea Jung-Ho Chung
Michael Davies Russian Sergei Shcherbakov
Bronwyn Driscoll Federation Lidia Troshina
Ivan King Saudi Arabia Abdulrahman Al-Hamidy
Belgium Guido Melis Sulieman Al-Kholifey
Canada Art Ridgeway South Africa Ernest van der Merwe
Chile Teresa Cornejo Stefaans Walters
China Han Hongmei Spain Eduardo Rodriguez-Tenés
China, Hong Kong Lily Ou-Yang Fong Uganda Michael Atingi-Ego
SAR United Kingdom Stuart Brown
France Philippe Mesny1 United States Ralph Kozlow
Germany Almut Steger Obie Whichard
Hungary Antal Gyulavári
India Michael Debabrata
Patra
Italy Antonello Biagioli
Japan Satoru Hagino
Joji Ishikawa
Teruhide Kanada
Makoto Kato
Hideki Konno
Takehiro Nobumori
Toru Oshita
Takuya Sawafuji
Hidetoshi Takeda
Takashi Yoshimura
Representatives of International Organizations
Bank for International Rainer Widera Organization for Ayse Bertrand
Settlements (BIS) Economic William Cave
European Central Werner Bier Cooperation and
Bank (ECB) Jean-Marc Israël Development
Carlos Sánchez- United Nations Masataka Fujita
Muñoz Conference on
Pierre Sola Trade and
Eurostat Elena Caprioli Development
Maria-Helena Figueira United Nations Ivo C. Havinga
Jean-Claude Roman Statistics
Mark van Wersch Division
1From 2004 onward, Philippe Mesny represented the Bank for International Settlements.
Technical expert groups
18. As noted above, the Committee created four technical expert groups to advise it on
specific issues. The Statistics Department is most grateful for the expert advice provided
by the members of these technical expert groups.
Balance of Payments Technical Expert Group (BOPTEG)
Chair: Neil Patterson
Secretariat: Robert Dippelsman and Manik Shrestha
Zia Abbasi (Australia); Jamal Al-Masri (Jordan); Christopher Bach (United States); Stuart
Brown (United Kingdom); Khady Beye Camara (Banque Centrale des États de l’Afrique
de l’Ouest, BCEAO); Raymond Chaudron (the Netherlands); Teresa Cornejo (Chile);
Michael Davies (Australia); Satoru Hagino (Japan); Han Hongmei (China); Januus Kroon
(Estonia); Philippe Mesny (BIS); Pawel Michalik (Poland); Frank Oudekken (the Neth-
erlands); Carlos Sánchez-Muñoz (ECB); Ipumbu Shiimi (Namibia); Almut Steger (Ger-
many); Hidetoshi Takeda (Japan); Nuannute Thana-anekcharoen (Thailand); Charlie
Thomas (United States); Mark van Wersch (Eurostat); Chris Wright (United Kingdom).
Direct Investment Technical Expert Group (DITEG)
Co-Chairs: Neil Patterson and Ralph Kozlow2
Secretariat: John Joisce and Marie Montanjees (IMF), and Ayse Bertrand and Yesim Sisik
(OECD)
Olga Aarsman (the Netherlands); Zia Abbasi (Australia); Roger de Boeck (Belgium);
Lars Forss (Sweden); Christian Lajule (Canada); Mondher Laroui (Tunisia); Jeffrey Lowe
(United States); Peter Neudorfer (ECB); George Ng (Hong Kong SAR); Frank Ouddeken
(the Netherlands); Paolo Passerini (Eurostat); Art Ridgeway (Canada); Carlos Sánchez-
Muñoz (ECB); Bruno Terrien (France); Lidia Troshina (Russian Federation); Mark van
Wersch (Eurostat); Carlos Varela (Colombia); Martin Vaughan (United Kingdom); Maiko
Wada (Japan); Graeme Walker (United Kingdom); Stefaans Walters (South Africa); and
Obie Whichard (United States).
Currency Unions Technical Expert Group (CUTEG)
Chair: Robert Heath
Secretariat: René Fiévet and Samuele Rosa (IMF)
Gebreen Al-Gebreen (Saudi Arabia); Olga Antropova (Belarus); Khady Beye Camara
(BCEAO); Miriam Blanchard (Eastern Caribbean Central Bank, ECCB); Luca Buldorini
(Italy); Remigio Echeverria (ECB); Nazaire Fotso Ndefo (Banque des États de l’Afrique
Centrale, BEAC); Jean Galand (ECB); Rudolf Olsovsky (Czech Republic); Jean-Marc
Israël (ECB);3 and Mark van Wersch (Eurostat).
Reserve Assets Technical Expert Group (RESTEG)
Chair: Robert Heath
Secretariat: Antonio Galicia and Gillmore Hoefdraad
Hamed Abu El Magd (Egypt); Koichiro Aritoshi (Japan); Kevin Chow (Hong Kong
SAR); Allison Curtiss (United Kingdom); Mihály Durucskó (Hungary); Saher El-Sherbini
(Egypt); Kelvin Fan (Hong Kong SAR); Fernando Augusto Ferreira Lemos (Brazil);
2DITEG was a joint task force with the OECD’s Benchmark Advisory Group (BAG). Ralph Kozlow was
chair of the Workshop of International Investment Statistics (the body overseeing the BAG) while Associate
Director for International Economics at the Bureau of Economic Analysis, . Department of Commerce,
before joining the IMF’s Statistics Department.
3Cochaired the second meeting of CUTEG held in Frankfurt.
Reiko Gonokami (Japan); Hideo Hashimoto (Japan); Yang Hoseok (Korea); Mohammed
Abdulla A. Karim (Bahrain); Philippe Mesny (BIS); Jean Michel Monayong Nkoumou
(BEAC); Linda Motsumi (South Africa); Christian Mulder (Monetary and Capital Mar-
kets Department, IMF); Joseph Ng (Singapore); Ng Yi Ping (Singapore); Carmen Picón
Aguilar (ECB); Stephen Sabine (United Kingdom); Julio Santaella (Mexico); Dai Sato
(Japan); Ursula Schipper (Germany); Jay Surti (Monetary and Capital Markets Depart-
ment, IMF); Charlie Thomas (United States); Lidia Troshina (Russian Federation); and
Yuji Yamashita (Japan).
Preparation of issues papers
Issues papers for four technical expert groups were prepared by Olga Antropova, Ayse
Bertrand, Stuart Brown, Richard Button, Robert Dippelsman, Remigio Echeverria, René
Fiévet, Jean Galand, Antonio Galicia, Gillmore Hoefdraad, Ned G. Howenstine, Maurizio
Iannaccone, John Joisce, Andreas Karapappas, Andrew Kitili, Stephan Klinkum, Ralph
Kozlow, Marie Montanjees, Frank Ouddeken, Paolo Passerini, Valeria Pellegrini, Art
Ridgeway, Samuele Rosa, Carlos Sánchez-Muñoz, Manik Shrestha, Pierre Sola, Hidetoshi
Takeda, Bruno Terrien, Lidia Troshina, Philip Turnbull, Martin Udy, Mark van Wersch,
and Chris Wright.
Issues papers also were prepared by the following institutions: International and Finan-
cial Accounts Branch, Australian Bureau of Statistics; National Bank of Belgium; Sta-
tistics Canada; European Central Bank; Census and Statistics Department, Hong Kong,
SAR; Bank of Japan; Service Central de la Statistique et des Etudes Economiques, Lux-
embourg; Balance of Payments and Financial Accounts Department, De Nederlandsche
Bank; Directorate for Financial and Enterprise Affairs, OECD; and the . Office for
National Statistics.
Other acknowledgments
19. The BPM6 also benefited from comments by national compilers, international
agencies, and interested individuals from the private sector arising from the public com-
ment periods on the March 2007 and March 2008 drafts. The IMF Statistics Department
acknowledges, with gratitude, their contributions.
20. The IMF Statistics Department is grateful for the support and cooperation of the
editor of the SNA, Anne Harrison.
Adelheid Burgi-Schmelz
Director, Statistics Department
International Monetary Fund
List of Abbreviations
AEG Advisory Expert Group on National Accounts
AMNE Activities of Multinational Enterprises
BAG Benchmark Advisory Group
BCEAO Banque Centrale des États de l’Afrique de l’Ouest
BEAC Banque des États de l’Afrique Centrale
BIS Bank for International Settlements
BOOT Build, own, operate, transfer
BOPSY Balance of Payments Statistics Yearbook
BOPTEG Balance of Payments Technical Expert Group
BPM5 Balance of Payments Manual, fifth edition (1993)
BPM6 Balance of Payments and International Investment Position Manual,
sixth edition (2008)
CDIS Coordinated Direct Investment Survey
CIF Cost, insurance, and freight
CIRR Commercial Interest Reference Rate
CMA Common monetary area
The Committee IMF Committee on Balance of Payments Statistics
CPC Central Product Classification
CPIS Coordinated Portfolio Investment Survey
CR. Credit
CU Currency union
CUCB Currency union central bank
CUNCB Currency union national central bank
CUTEG Currency Unions Technical Expert Group
DI Direct investment
DITEG Direct Investment Technical Expert Group
DR. Debit
EBOPS Extended Balance of Payments Services (Classification)
ECB European Central Bank
ECCB Eastern Caribbean Central Bank
EcUn Economic union
ESO Employee stock option
FATS Foreign AffiliaTes Statistics
FCA Free carrier
FD Financial derivatives (other than reserves) and employee stock
options
FDIR Framework for Direct Investment Relationships
FISIM Financial intermediation services indirectly measured
FOB Free on board
GAB General Arrangements to Borrow
GATS General Agreement on Trade in Services
GDP Gross domestic product
GFSM Government Finance Statistics Manual
GNDY Gross national disposable income
GNI Gross national income
HIPC Heavily indebted poor country
HS Harmonized Commodity Description and Coding System
IC Insurance corporations
ICPF Insurance corporations and pension funds
IIP International investment position
IMF International Monetary Fund
IMTS International merchandise trade statistics
ISIC International Standard Industrial Classification of All Economic
Activities
ISWGNA InterSecretariat Working Group on National Accounts
LIBOR London interbank offered rate
MFSM Monetary and Financial Statistics Manual
MMF Money market fund
MSITS Manual on Statistics of International Trade in Services
. not applicable
NAB New Arrangements to Borrow
. not included elsewhere
NGO Nongovernmental organization
NPISH Nonprofit institution serving households
OECD Organization for Economic Cooperation and Development
OFC Other financial corporations
OI Other investment
PF Pension funds
PI Portfolio investment
PRGF Poverty Reduction and Growth Facility
RA Reserve assets
RESTEG Reserve Assets Technical Expert Group
RRL Reserve-related liabilities
SDR Special Drawing Right
SNA System of National Accounts
SPE Special purpose entity
SWF Sovereign wealth fund
1
CHAPTER
Introduction
A. Purposes of the Manual
The sixth edition of the Balance of Payments
and International Investment Position Manual (BPM6,
the Manual) serves as the standard framework for sta-
tistics on the transactions and positions between an
economy and the rest of the world.
The main objectives of this Manual are as
follows:
(a) To provide and explain concepts, definitions,
classifications, and conventions for balance of
payments and international investment position
statistics;
(b) To enhance international comparability of data
through the promotion of guidelines adopted
internationally;
(c) To show the links of balance of payments and
international investment position statistics to
other macroeconomic statistics and promote
consistency between different data sets; and
(d) To provide a brief introduction to uses of data on
balance of payments, other changes in financial
assets and liabilities, and international invest-
ment position, as the international accounts of
an economy.
Data collection and other compilation proce-
dures and dissemination are not generally within the
scope of a conceptual manual such as this one. Deci-
sions on such issues should take into account circum-
stances, such as practical and legal constraints, and
relative size, that need to be judged in each economy
and that may explain departures from guidelines. The
IMF’s Balance of Payments Compilation Guide pro-
vides information on these issues.
The Manual provides a framework that is applica-
ble for a range of economies, from the smallest and least
developed economies to the more advanced and complex
economies. As a result, it is recognized that some items
may not be relevant in all cases. It is the responsibil-
ity of national compilers to apply international guide-
lines in a way appropriate to their own circumstances. In
implementing this Manual, compilers are encouraged to
assess the materiality and practicality of particular items
according to their own circumstances and are further
encouraged to revisit these decisions from time to time to
see whether circumstances have changed. Such decisions
necessarily rely on the professionalism and knowledge of
the compilers.
Factors to take into account when determin-
ing the items to be collected and the techniques used
include whether or not exchange controls exist, the rela-
tive importance of particular types of economic activi-
ties, and the diversity of institutions and the range of
instruments used in financial markets. In addition, data
collection for some items in the framework may be
impractical if the item is small and the data collection
cost is high. Conversely, compilers may wish to iden-
tify other items of particular economic interest in their
economy for which additional detail may be required
by policymakers and analysts.
This Manual is harmonized with the System
of National Accounts 2008 (2008 SNA), which was
updated in parallel. Relevant elements of the Monetary
and Financial Statistics Manual 2000 and Govern-
ment Finance Statistics Manual 2001 will be revised
to maintain their harmonization with the two updated
manuals. Conceptual interlinkages mean that balance
of payments and international investment position com-
pilers should consult with other statisticians to ensure
consistent definitions and provide data that can be rec-
onciled where they overlap.
The definitions and classifications in this Man-
ual do not purport to give effect to, or interpret, various
provisions (which pertain to the legal characterization
of official action or inaction in relation to such transac-
tions) of the Articles of Agreement of the International
Monetary Fund.
B. Structure of the Manual
The Manual has 14 chapters and 9 appendixes.
The introductory chapters deal with issues that cut across
the accounts (Chapters 1–6) and are followed by chap-
ters that cover respectively each main account (Chapters
7–13), closing with a chapter on analysis of data. The
Manual states general principles that are intended to be
applicable in a wide range of circumstances. As well, it
applies the principles to some specific topics that have
been identified as needing additional guidance. Defini-
tions are given throughout the text, shown in italics.
Consistent with this structure, different aspects
of a topic are dealt with in different chapters to mini-
mize repetition. For example, the classification of port-
folio investment is a cross-cutting issue (Chapter 6), as
are valuation and timing issues (Chapter 3). The posi-
tion, transaction, other changes, and income aspects
are dealt with in Chapters 7, 8, 9, and 11, respectively.
Linkages are emphasized by extensive cross-references.
In addition, for direct investment, insurance, and finan-
cial leases, appendixes have been included to allow the
reader to see the linkages among the different accounts
for that topic.
1. Introductory chapters
The introductory chapters (Chapters 1–6) cover
the following:
(a) Chapter 1 gives background to the Manual.
(b) Chapter 2 covers the accounting and dissemina-
tion frameworks.
(c) Chapter 3 deals with accounting principles.
(d) Chapters 4 deals with issues associated with
units, sectors, and residence.
(e) Chapter 5 deals with the classification of assets
and liabilities.
(f) Chapter 6 explains the functional categories.
2. Chapters for each account
Chapters 7–13 deal with the accounts of the
framework. Each account reflects a single economic
process or phenomenon and has a single chapter. The
order of chapters is a matter of convention; in this edi-
tion, the international investment position appears first
to reflect the increased emphasis on its compilation and
analysis since the release of the fifth edition (BPM5) and
to explain financial assets and liability positions before
dealing with the investment income they generate.
Each chapter starts with a statement of general
economic principles. A simplified table designed to
give an overview of the account is also included in
each chapter. The text provides general definitions
of items in the account. Specific cases are given as
examples of the application of the general definitions
and to clear up ambiguities. A full understanding of
each account also requires applying the wider prin-
ciples that apply across several accounts, such as valu-
ation, timing, residence, and classification, as covered
in the introductory chapters.
3. Analysis
Chapter 14 provides an introduction to the
analysis of data, with particular reference to macroeco-
nomic relationships as a whole.
4. Appendixes
Appendixes provide more details on spe-
cific issues that go across several accounts, includ-
ing changes from BPM5, currency unions, exceptional
financing, debt reorganization, and a listing of stan-
dard components.
5. Standard components and memorandum
items
A list of standard items for presenting and
reporting the balance of payments and international
investment position is given in Appendix 9. Standard
items consist of standard components and memoran-
dum items.
(a) Standard components are items that are fully
part of the framework and contribute to the
totals and balancing items.
(b) Memorandum items are part of the standard pre-
sentation, but are not used in deriving totals and
balancing items. For example, whereas nominal
value is used for loans in the standard compo-
nents, memorandum items provide additional
information on loans at fair value, as discussed
in paragraphs –.
In addition,
(c) Supplementary items are outside the standard
presentation, but are compiled depending on
circumstances in the particular economy, taking
into account the interests of policymakers and
analysts as well as resource costs (see the items
in italics in Appendix 9).
The list of standard items should not inhibit
compilers from publishing additional data of importance
to their economy. IMF requests for information will not
be limited to standard items when further details are
required to understand the circumstances of particular
economies or to analyze new developments. IMF staff
occasionally will consult with authorities to decide on
the reporting of additional details. Few economies are
likely to have significant information to report for every
standard item. Furthermore, data for several components
may be available only in combination, or a minor com-
ponent may be grouped with one that is more signifi-
cant. The standard items should nevertheless be reported
to the IMF as completely and accurately as possible in
accordance with the compilation framework. Compilers
are in better positions than IMF staff to make estimates
and adjustments for items that do not exactly correspond
to the basic series of the compiling economy.
C. History of the Manual
Each new edition of the Manual is introduced
in response to economic and financial developments,
changes in analytical interests, and accumulation of
experience by compilers.
The IMF showed early interest in statistical
methodology with its publication of the first edition of
the Balance of Payments Manual in January 1948. The
major objective of that first Manual was to provide a
basis for regular, internationally standardized reporting
to the IMF. The Manual was a continuation of work
started by the League of Nations to develop guide-
lines for balance of payments statistics. Economists and
other specialists from many countries contributed to
the Manual, and representatives of some 30 countries
and international organizations met in Washington,
., in September 1947 to finalize the first draft of
the Manual.
The first edition of the Manual consisted pri-
marily of tables for reporting data and brief instruc-
tions for completing them. No general discussion of
balance of payments concepts or compilation methods
was included, so it can be said that the Manual grew out
of the listing of standard components.
The second edition was published in 1950,
greatly expanding the material describing the concepts
of the system.
The third edition was issued in 1961. It moved
beyond the previous editions by providing both a basis
for reporting to the IMF and a complete set of balance
of payments principles that could be used by countries
to serve their own needs.
The fourth edition was published in 1977.
It responded to the important changes in the way in
which international transactions were carried out and
to changes in the international financial system. Much
fuller treatments of the underlying principles of resi-
dence, valuation, and other accounting principles were
provided. The Manual also introduced flexibility in the
use of the standard components to construct various
balances, with no single presentation preferred.
The fifth edition was published in Septem-
ber 1993, following a long period of development that
included expert group meetings convened by the IMF
in 1987 and 1992 as well as two working parties cover-
ing the current and financial accounts. This edition was
marked by harmonization with the System of National
Accounts 1993 (1993 SNA), which was developed at the
same time. The decision to harmonize the guidelines
was a result of increasing interest in linking differ-
ent macroeconomic data sets and avoiding data incon-
sistencies. BPM5 brought about a number of changes
in definitions, terminology, and the structure of the
accounts, including removing capital transfers and non-
produced assets from the current account to a newly
designated capital account, the renaming of the capi-
tal account as the financial account, and splitting ser-
vices from primary income (which previously had been
called factor services). Additionally, BPM5 introduced
microfoundations of units and sectors, consistent with
the SNA, rather than treating the economy as a single
unit. In addition, the Manual was extended beyond bal-
ance of payments statistics to include the international
investment position.
The IMF subsequently published the Monetary
and Financial Statistics Manual 2000 and Government
Financial Statistics Manual 2001. These manuals also
brought about further harmonization of the statistical
guidelines, reflecting increasing concerns about the
ability to link different statistical data, minimizing data
inconsistency, and enhancing analytical potential.
In 1992, the IMF established the IMF Commit-
tee on Balance of Payments Statistics (the Committee),
as a continuing body for consultation with national
compilers and international organizations. A procedure
was established for partial revisions of statistical guide-
lines between major revisions, as was done in the late
1990s for financial derivatives and aspects of direct
investment. (The procedures for partial revisions are
set out in Section E.)
A number of related publications have been
developed since the 1993 edition. The Balance of Pay-
ments Compilation Guide was published in 1995. The
Guide complemented the Manual by providing practi-
cal advice on the collection and compilation of statis-
tics. The Balance of Payments Textbook was released
in 1996. It has a teaching orientation, for instance, giv-
ing numerical examples to illustrate general principles.
Some aspects of international accounts statis-
tics with particular interest were covered in specialized
guides. Those guides are Coordinated Direct Investment
Survey Guide (2008), Coordinated Portfolio Investment
Survey Guide (1996 and 2001), International Reserves
and Foreign Currency Liquidity: Guidelines for a Data
Template (2000), Manual on Statistics of International
Trade in Services (2002), External Debt Statistics:
A Guide for Compilers and Users (2003), Bank for
International Settlements Guide to the International
Banking Statistics (2003), International Transactions
in Remittances: Guide for Compilers and Users, and
the OECD Benchmark Definition of Foreign Direct
Investment (2008).
D. The 2008 Revision
At its 2001 meeting, the Committee decided
to initiate an update of the Manual by around 2008.
It was considered that although the overall frame-
work of the fifth edition did not need to change, a
new Manual should incorporate the numerous elabo-
rations and clarifications that had been identified
since 1993. Also, the sixth edition should strengthen
the theoretical foundations and linkages to other
macroeconomic statistics.
The Committee also decided to conduct the
update in parallel with the update of the 1993 SNA
and OECD Benchmark Definition of Foreign Direct
Investment.
The IMF released, through the Committee,
an Annotated Outline for the update of the Manual
in April 2004. It included proposals and options for
the style and content of the revised Manual. It was
circulated to central banks and statistical agencies,
as well as being made available on the Internet. Input
was invited from compilers and others on a global
basis. The Committee established technical expert
groups to undertake detailed consideration of issues
and make recommendations on currency unions,
direct investment, reserves, and other issues, respec-
tively. Draft versions of the Manual were published
on the IMF website in March 2007 and March 2008,
with invitations for worldwide comment. In addition,
other editions of selected chapters and the whole
document were circulated to Committee members
and other interested parties. A series of regional out-
reach seminars was conducted between January and
September 2008 to explain the changes in the Man-
ual and gain comments on the content. This process
led to a revised version submitted to the Committee
in November 2008.
Three major themes that have emerged
from the revision are globalization, increasing elabora-
tion of balance sheet issues, and financial innovation.
Globalization has brought several issues to
greater prominence. An increasing number of individ-
uals and companies have connections to two or more
economies and economies increasingly enter into
economic arrangements. In particular, there has been
increasing interest in the residence concept and in
information on migrant workers and their associated
remittance flows. Additionally, globalized production
processes have become more important, so treatments
have been developed to provide a fuller and more
coherent picture of outsourced physical processes (.,
goods for processing) and sales and management of
manufacturing that do not involve physical posses-
sion (., merchanting). Guidance is provided on the
residence and activities of special purpose entities and
other legal structures that are used for holding assets
and that have little or no physical presence. The results
of work on international trade in services and remit-
tances are included. Furthermore, for the first time,
specific guidance on the treatment of currency unions
is included.
The Manual reflects increased interest in bal-
ance sheet analysis for understanding international
economic developments, particularly vulnerability
and sustainability. Greater emphasis and elaboration
of the financial instrument classification in the SNA
and Monetary and Financial Statistics Manual are
designed to facilitate linkages and consistency. The
Manual provides considerably more detailed guid-
ance on the international investment position. It also
provides much greater discussion of revaluations and
other volume changes and their impact on the values
of assets and liabilities. The results of detailed work
over the past decade on international investment
position, direct investment, external debt, portfolio
investment, financial derivatives, and reserve assets
are incorporated into the new Manual. The move to
an integrated view of transactions, other changes, and
positions has been recognized in the amended title as
Balance of Payments and International Investment
Position Manual, with the acronym BPM6 used to
highlight the historical evolution from previous edi-
tions of the Manual, which were known as BPM5,
BPM4, and so on.
Financial innovation is the emergence and
growth of new financial instruments and arrangements
among institutional units. Examples of instruments
covered include financial derivatives, securitization,
index-linked securities, and gold accounts. An example
of institutional arrangements are special purpose enti-
ties and complex, multieconomy corporate structures.
Enhanced guidelines cover direct investment in cases
of long and complex chains of ownership, revised in
conjunction with the revised OECD Benchmark Defi-
nition of Foreign Direct Investment. Revised treat-
ments of insurance and other financial services are
adopted. The Manual also provides expanded treat-
ment on the issues of loan impairments, debt reorga-
nization, guarantees, and write-offs.
In addition, the Manual incorporates changes
arising from other statistical manuals, particularly the
2008 SNA. The harmonization with other macroeco-
nomic statistics is strengthened in terms of presentation
by more details on the underlying economic concepts
and their associated links with the equivalent parts of
the SNA and other manuals. Other changes were made
in response to requests to provide clarification or fur-
ther detail on particular topics.
The overall structure of the accounts and broad
definitions are largely unchanged in this edition, so the
changes are less structural than those made for the fifth
edition. Rather, economic and financial developments
and evolution of economic policy concerns are taken
into account, and clarification and elaboration of these
developments are provided. A list of changes made in
this edition of the Manual is included as Appendix 8.
E. Revisions between Editions of
the Manual
The IMF and the Committee have developed
procedures for updating the Manual on an ongoing
basis between major revisions. Under these procedures,
updates can be divided into four types:
(a) editorial amendments;
(b) clarifications beyond dispute;
(c) interpretations; and
(d) changes.
Each of these types of updates has a different set of steps
that are to be followed in the consultation process.
Editorial amendments refer to wording errors,
apparent contradictions, and, for non-English versions
of the Manual, translation errors. These corrections
affect neither concepts nor the structure of the system.
IMF staff will draft these amendments, which will be
brought to the Committee for advice. An errata sheet
will then be produced, and the amendments will be
publicized on the website.
A clarification beyond dispute arises when
a new economic situation emerges or when a situation
that was negligible when the Manual was produced has
become considerably more important, but for which
the appropriate treatment under existing standards is
straightforward. IMF staff will draft these clarifica-
tions, based on existing recommendations, and after
advice from the Committee, they will be publicized on
the website and by other means.
An interpretation arises when an economic
situation arises for which the treatment under the
Manual may not be clear. Several solutions on how
to treat the situation may be proposed, because it is
possible to have different interpretations of the Man-
ual. In this case, IMF staff, in consultation with the
Committee, will draft preliminary text that will be
sent to panels of experts, and to the InterSecretariat
Working Group on National Accounts (ISWGNA) (if
also relevant to the SNA). IMF staff will propose a
final decision, in consultation with the Committee.
Interpretations will be publicized on the website and
by other means.
A change to the framework arises when an
economic situation occurs in which it becomes appar-
ent that the concepts and definitions of the framework
are not relevant or are misleading and will require
change. In such a situation, parts of the Manual may
need to be substantially rewritten to reflect the needed
changes. In such a case, IMF staff, in consultation with
the Committee, will prepare proposals that will be dis-
seminated widely to panels of experts, the ISWGNA (if
also relevant to the SNA), and all IMF member coun-
tries. The Committee will advise how such changes
should be incorporated into the framework, whether
promulgated immediately through a booklet detailing
the amendments to the Manual or by issuing a new
Manual. Information will be produced and provided to
all countries with changes also publicized on the IMF
website and by other means.
The IMF website will provide a consolidated
list of these decisions.
A research agenda has been identified for pos-
sible future work. It includes the following:
(a) ultimate investing economy and ultimate host
economy in direct investment (see paragraph
);
(b) whether direct investment relationships can be
achieved other than by economic ownership
of equity (., through warrants or repos) (see
paragraph );
(c) pass-through funds (see paragraphs –);
(d) reverse transactions (including short positions
and investment income that is receivable/pay-
able while a security is on-lent) (see paragraphs
–, , –, and );
(e) extended use of fair values of loans (see para-
graphs –);
(f) how the risk and maturity structure of the finan-
cial assets and liabilities should be taken into
account in the reference rate for calculations of
financial services indirectly measured (see para-
graphs –);
(g) investment income, in particular the differ-
ent treatments of retained income for different
investment types and the borderline between
dividends and withdrawal of equity (see Chapter
11, Primary Income Account);
(h) debt concessionality, in particular whether the
transfer element should be recognized and, if so,
how it should be recorded (see paragraphs
and ); and
(i) emissions permits (see paragraph ).
2
CHAPTER
Overview of the Framework
A. Introduction
This chapter first describes and illustrates how
the international accounts are an integral conceptual
part of the broader system of national accounts. It then
covers important aspects of statistics such as time
series.
B. Structure of the Accounts
References:
2008 SNA, Chapter 2, Overview, and Chapter 16, Sum-
marizing and Integrating the Accounts.
IMF, The System of Macroeconomic Accounts Statis-
tics: An Overview, Pamphlet Series No. 56.
1. Overall framework
The international accounts for an economy sum-
marize the economic relationships between residents
of that economy and nonresidents. They comprise the
following:
(a) the international investment position (IIP)—a
statement that shows at a point in time the value
of: financial assets of residents of an economy
that are claims on nonresidents or are gold bul-
lion held as reserve assets; and the liabilities of
residents of an economy to nonresidents;
(b) the balance of payments—a statement that sum-
marizes economic transactions between resi-
dents and nonresidents during a specific time
period; and
(c) the other changes in financial assets and lia-
bilities accounts—a statement that shows other
flows, such as valuation changes, that reconciles
the balance of payments and IIP for a specific
period, by showing changes due to economic
events other than transactions between residents
and nonresidents.
The international accounts provide an integrated
framework for the analysis of an economy’s international
economic relationships, including its international eco-
nomic performance, exchange rate policy, reserves man-
agement, and external vulnerability. A detailed study
of the use of international accounts data is provided in
Chapter 14, Selected Issues in Balance of Payments and
International Investment Position Analysis.
The framework provides a sequence of accounts,
each one encompassing a separate economic process or
phenomenon, and shows the linkages between them.
While each account has a balancing item, the account
also gives a full view of its components.
The concepts of the international accounts are
harmonized with the System of National Accounts
(SNA), so they can be compared or aggregated with
other macroeconomic statistics. The framework for
macroeconomic statistics used in the SNA and interna-
tional accounts is shown in Figure .
The international accounts framework is the
same as the SNA framework. However, some accounts,
which are shaded in Figure , are not applicable.
The framework is designed so that the core con-
cepts can be used to develop additional data sets, as
discussed in Annex to this chapter.
2. International investment position
The IIP is a statistical statement that shows at a
point in time the value of: financial assets of residents
of an economy that are claims on nonresidents or are
gold bullion held as reserve assets; and the liabilities
of residents of an economy to nonresidents. The differ-
ence between the assets and liabilities is the net posi-
tion in the IIP and represents either a net claim on or a
net liability to the rest of the world.
The IIP represents a subset of the assets and
liabilities included in the national balance sheet. In
Figure . Overview of the System of National Accounts as a Framework
for Macroeconomic Statistics Including International Accounts
Transactions/Balance of payments:
Other flows:
Key
:
Shaded accounts do not appear in the international accounts.
The arrows represent the contributions of assets to production and income generation (., using nonfinancial assets as an input to production,
using financial assets to generate interest and dividends).
Production account
Value added/GDP
Goods and services
account
Name of account
SNA Balancing item
Generation of income
account
Operating surplus
Distribution of income
account
National income
Secondary distribution
of income account
Disposable income
Use of income account
Saving
Opening balance sheet Accumulation accounts Closing balance sheet
Other changes in
Nonfinancial assets Capital account nonfinancial assets Nonfinancial assets
Net lending/net borrowing
Other changes in
Financial assets and
liabilities
Financial account financial assets
and liabilities
Financial assets and
liabilities
Net worth Net lending/net borrowing Net other changes Net worth
addition to the IIP, the national balance sheet incorpo-
rates nonfinancial assets as well as financial assets and
liability positions between residents. This statement is
described further in Chapter 7.
Whereas the IIP relates to a point in time, the
integrated IIP statement relates to different points in
time, and it has an opening value (as at the beginning
of the period) and a closing value (as at the end of the
period). The integrated IIP statement reconciles the
opening and closing values of the IIP through the finan-
cial account (flows arising from transactions) and the
other changes in financial assets and liabilities account
(other volume changes and revaluation). So, the values
in the IIP at the end of the period result from trans-
actions and other flows in the current and previous
periods. The integrated IIP statement consists of the
accounts explained in Chapters 7–9 (., the IIP, the
financial account, and the other changes in financial
assets and liabilities account, respectively).
The highest level of classification used in the
IIP, financial account, and other changes in assets and
liabilities account is the functional classification, which
is covered in Chapter 6. The functional categories group
together financial instruments based on economic moti-
vations and patterns of behavior to assist in the anal-
ysis of cross-border transactions and positions. These
categories are direct investment, portfolio investment,
financial derivatives (other than reserves) and employee
stock options, other investment, and reserve assets. The
SNA does not have such categories, preferring to record
financial account activity by type of instrument alone
(although direct investment is a memorandum item to
the SNA instrument classification). Chapter 5 covers the
classification of financial instruments.
3. Balance of payments
The balance of payments is a statistical state-
ment that summarizes transactions between residents
and nonresidents during a period. It consists of the goods
and services account, the primary income account, the
secondary income account, the capital account, and
the financial account. Under the double-entry account-
ing system that underlies the balance of payments, each
transaction is recorded as consisting of two entries and
the sum of the credit entries and the sum of the debit
entries is the same. (See Box for further elaboration
on the double-entry accounting system.)
The different accounts within the balance of
payments are distinguished according to the nature of
the economic resources provided and received.
Current account
The current account shows flows of goods, ser-
vices, primary income, and secondary income between
residents and nonresidents. The current account is an
important grouping of accounts within the balance of
payments. Its components are dealt with in the follow-
ing chapters:
• Chapter 10 discusses the goods and services
account. This account shows transactions in goods
and services.
• Chapter 11 discusses the primary income account.
This account shows amounts payable and receiv-
able in return for providing temporary use to
another entity of labor, financial resources, or non-
• Chapter 12 discusses the secondary income
account. This account shows redistribution of
income, that is, when resources for current pur-
poses are provided by one party without anything
of economic value being supplied as a direct return
to that party. Examples include personal transfers
and current international assistance.
The balance on these accounts is known as the
current account balance. The current account balance
shows the difference between the sum of exports and
income receivable and the sum of imports and income
payable (exports and imports refer to both goods and
services, while income refers to both primary and sec-
ondary income). As shown in Chapter 14, Selected
Issues in Balance of Payments and International Invest-
ment Position Analysis, the value of the current account
balance equals the saving-investment gap for the econ-
omy. Thus, the current account balance is related to
understanding domestic transactions.
Capital account
The capital account shows credit and debit
entries for nonproduced nonfinancial assets and capital
transfers between residents and nonresidents. It records
acquisitions and disposals of nonproduced nonfinan-
cial assets, such as land sold to embassies and sales of
leases and licenses, as well as capital transfers, that is,
the provision of resources for capital purposes by one
party without anything of economic value being sup-
plied as a direct return to that party. This account is
described further in Chapter 13.
Financial account
The financial account shows net acquisition and
disposal of financial assets and liabilities. This account
is described in Chapter 8. Financial account transac-
tions appear in the balance of payments and, because
of their effect on the stock of assets and liabilities, also
in the integrated IIP statement.
The sum of the balances on the current and
capital accounts represents the net lending (surplus) or
net borrowing (deficit) by the economy with the rest of
the world. This is conceptually equal to the net balance
of the financial account. In other words, the financial
account measures how the net lending to or borrowing
produced nonfinancial
to use nonproduced nonfinancial assets gives rise to rent (paragraph
) and allowing another entity to use financial assets gives rise
1Allowing another entity to use produced assets gives rise to a
service (see paragraph ). In contrast, allowing another entity
to investment income, such as interest, dividends, and retained earn-
ings (see paragraph ).
Box . Double-Entry Basis of Balance of Payments Statistics
Recording for individual transactions
The recording of debits and credits underlies the account-
ing system at the level of individual transactions. Each trans-
action in the balance of payments is recorded as consisting
of two equal and opposite entries, reflecting the inflow and
outflow element to each exchange. For each transaction, each
party records a matching credit and debit entry:
• Credit (CR.)—exports of goods and services, income
receivable, reduction in assets, or increase in liabilities.
• Debit (DR.)—imports of goods and services, income
payable, increase in assets, or reduction in liabilities.
Examples
A simple example is for sale of goods to a nonresident
for 100 in currency. For the seller:
Exports 100 (CR.)
Currency 100 (DR.—Increase in financial assets)
(The transaction involves the provision of physical
resources to nonresidents and a compensating receipt of
financial resources from nonresidents.)
An example of a transaction involving only financial
asset entries is the sale of shares for 50 in currency. For
the seller:
Shares and 50 (CR.—Reduction in financial assets)
other equity
Currency 50 (DR.—Increase in financial assets)
(The selling party provides shares and receives cur-
rency in return.)
An example involving the exchange of an asset for the
creation of a liability is where a borrower receives a loan
of 70 in cash. For the borrower:
Loan 70 (CR.—Increase in liabilities)
Currency 70 (DR.—Increase in financial assets)
(There are some more complex cases when three or
more parties are involved, ., the case of debt assump-
tion shown in Box .)
Aggregate recording
In balance of payments aggregates, the current and
capital account entries are totals, while financial account
entries are net values for each category/instrument for
each of assets and liabilities (as explained in paragraph
). Chapter 3, Accounting Principles, Part C provides
further information on the accounting system used in bal-
ance of payments statistics.
As a result of the two-entry nature of each transaction,
the difference between the sum of credit entries and the
sum of debit entries is conceptually zero in the national
balance of payments, that is, in concept, the accounts
as a whole are in balance. As discussed in paragraphs
–, measurement problems cause discrepancies
in practice.
The two-entry nature of the balance of payments can
be presented in aggregate data in different ways. A pre-
sentation where the nature of the entries is conveyed
by the column headings (namely, credits, debits, net
acquisition of financial assets, and net incurrence of
liabilities) is adopted in Table . This presentation is
considered to be easily understood by users. Another
presentation is where credit entries are shown as positive
and debit entries as negative. This presentation is useful
for calculating balances, but requires more explanation
for users (., increases in assets are shown as a nega-
tive value).
In the SNA presentation, a credit entry for the com-
piling economy in the balance of payments current
account is called a use by the rest of the world sector
(., exports are used by the rest of the world). Simi-
larly, a debit entry for the compiling economy is called
provision of “resources” in the SNA (., imports are a
resource provided by the rest of the world). Because the
SNA rest of the world accounts use the point of view of
the nonresidents, assets of the compiling economy in the
international accounts are shown as liabilities of the rest
of the world sector in the SNA.
from nonresidents is financed. The financial account
plus the other changes account explain the change in
the IIP between beginning- and end-periods.
Gross and net recording
The current and capital accounts show transac-
tions in gross terms. In contrast, the financial account
shows transactions in net terms, which are shown sepa-
rately for financial assets and liabilities (., net trans-
actions in financial assets shows acquisition of assets
less reduction in assets, not assets net of liabilities).
For resources that enter and leave an economy (such
as re-exported goods, and funds in transit), it may be
analytically useful to present net flows as well. Each
of the accounts and the borderlines between them are
discussed in more detail in the specific chapters.
4. Accumulation accounts
The accumulation accounts comprise the capi-
tal account, financial account, and other changes in
financial assets and liabilities accounts. They show the
accumulation (., acquisition and disposal) of assets
and liabilities, their financing, and other changes that
affect them. Accordingly, they explain changes between
the opening and closing IIP/balance sheets. Whereas
the current account is concerned with resource flows
oriented to the current period, the accumulation accounts
deal with the provision and financing of assets and liabil-
ities, which are items that will affect future periods.
The financial account shows the net acquisition
of financial assets and net incurrence of liabilities dur-
ing the specified period. In contrast, the other changes
in financial assets and liabilities account shows flows
that do not result from balance of payments transac-
tions. The other changes in financial assets and lia-
bilities account covers changes in volume, other than
balance of payments transactions; revaluation due to
exchange rate changes; and other revaluation. This
account is described further in Chapter 9.
5. Integrated recording of positions and
transactions
As highlighted in the previous sections, the
international accounts, inclusive of the IIP and bal-
ance of payments, consist of a set of accounts that are
integrated at two levels. First, while the accounts repre-
sent a great mass of detailed information on interaction
between the different economic agents, their recording
is based on the double-entry system of accounting, as
set out in Box .
Second, the system calls for consistent report-
ing by the two parties to each financial claim, transac-
tion, and other flow. In the case of the international
accounts, this consistency helps to promote compara-
bility across economies as well as the use of counter-
part data as data sources or for data validation.
6. Net errors and omissions
Although the balance of payments accounts
are, in principle, balanced, imbalances result in prac-
tice from imperfections in source data and compilation.
This imbalance, a usual feature of balance of payments
data, is labeled net errors and omissions and should be
identified separately in published data. It should not be
included indistinguishably in other items. Net errors and
omissions are derived residually as net lending/net bor-
rowing and can be derived from the financial account
minus the same item derived from the current and capital
Therefore, a positive value of net errors and
omissions indicates an overall tendency that:
2For example, if net lending/net borrowing measured from the
current and capital accounts is 29, while net lending/net borrow-
ing measured from the financial account is 31, then net errors and
omissions is +2.
(a) the value of credits in the current and capital
accounts is too low; and/or
(b) the value of debits in the current and capital
accounts is too high; and/or
(c) the value of net increases in assets in the finan-
cial account is too high; and/or
(d) the value of net increases in liabilities in the
financial account is too low.
(For a negative value of net errors and omissions, these
tendencies are reversed.)
The values of net errors and omissions should
be analyzed by compilers. The size and trends may help
identify data problems, such as coverage or misreport-
ing. Patterns in net errors and omissions may provide
useful information on data problems. For example, a
consistent sign indicates a bias in one or more compo-
nents. A persistent positive value of net errors and omis-
sions suggests that credit entries have been understated
or omitted or debit entries have been overstated. In con-
trast, a volatile pattern may suggest timing problems.
However, although net errors and omissions can help
point to some problems, it is an incomplete measure
because errors and omissions in opposite directions
offset each other. The term net errors and omissions
should not be interpreted as meaning errors on the part
of compilers; it is far more common that this discrep-
ancy is caused by other factors, such as incomplete data
sources and poor quality reporting.
A large or volatile value of net errors and omis-
sions hampers interpretation of the results. While it is
not possible to give guidelines on an acceptable size
of net errors and omissions, it can be assessed (where
possible) by compilers in relation to other items, such
as GDP, positions data, and gross flows. Statistical dis-
crepancies also can arise in the IIP statement. Closing
values are by definition equal to the opening values
plus net transactions plus net other changes during the
period. However, if these components are indepen-
dently measured, discrepancies may arise because of
data imperfections.
7. Linkages within the international accounts
Some of the important linkages within the
international accounts are as follows:
(a) The end of period values of the IIP are the sum
of the beginning of period values, transactions,
and other flows.
(b) The current, capital, and financial account entries
are in balance, in principle.
(c) Consequent to (b), the balance on the sum of
the current and capital accounts is equal to the
balance on the financial account. This balance
is called net lending/net borrowing, whichever
way it is derived.
(d) Consequent to (b), the current account balance is
equal to the balance on the financial account less
the balance on the capital account.
(e) Financial assets and liabilities generally give rise
to investment income. Table shows the link
between financial instruments and their corre-
sponding income. The rate of return is derived
as the ratio of income to the corresponding stock
of assets or liabilities. (Rates of return might
also take into account holding gains or losses for
some analysis.)
Because of the harmonization of macroeco-
nomic statistical guidelines, it is also possible to look at
residents’ transactions and positions with nonresidents
in relation to the transactions and positions between
residents. For example:
(a) the international financing can be compared with
domestic lending and borrowing; and
(b) the IIP can be compared with the national bal-
ance sheet and with monetary and financial
statistics.
Chapter 14, Selected Issues in Balance of Payments and
International Investment Position Analysis, has a wider
discussion of interrelationships between the interna-
tional accounts and other macroeconomic data.
8. Linkages and consistency with other
data sets
Placing the international accounts in the
SNA framework shown in Figure helps identify
linkages among macroeconomic data sets. Specific
aspects of the international accounts are provided,
for instance, in reporting statements on merchandise
trade, trade in services, direct investment, external
debt, and international reserves. Additionally, items
involving flows and positions between residents and
nonresidents that appear in the national accounts,
monetary and financial statistics, and government
finance statistics correspond exactly to international
accounts items.
The following paragraphs list data items that
should be consistent with the international accounts.
Data compilers should reconcile these overlapping
items, with a view toward eliminating or explaining any
differences. Data consistency is particularly important
for comprehensive macroeconomic analysis, in order
to allow the different datasets to be combined coher-
ently. For example, if data are consistent, it is possible
to understand how a government is financing a deficit
from external and domestic sources, or show how the
saving-investment balances of individual sectors con-
tribute to the national current account balance.
National accounts
The international accounts correspond to the
rest of the world accounts of the SNA. They differ in
that the balance of payments is from the perspective of
the resident sectors, whereas national accounts data for
the rest of the world are from the perspective of non-
residents. The SNA items that are equivalent to balance
of payments items include exports and imports of goods
and services, primary income, secondary income, cur-
rent external balance, balance on the capital account,
and net lending /net borrowing.
Monetary and financial statistics
Balance sheets for deposit-taking and other
financial corporations can be compared with the rel-
evant parts of the IIP. In particular:
• foreign assets and liabilities of the central bank;
and
• foreign assets and liabilities of other deposit-taking
corporations
should be consistent with the corresponding interna-
tional accounts items. Because the IIP data are orga-
nized primarily on a functional category basis, the
instrument and sector data from different functional
categories need to be combined if they are to be linked
with monetary and financial statistics. Direct invest-
ment, if any, of the central bank and other deposit-
taking corporations is needed to derive aggregates
consistent with monetary and financial statistics, and
thus is shown as a supplementary item where relevant.
Other adjustments may be needed for any deposit-
taking corporations whose liabilities are excluded from
broad money (., offshore banks in some cases) or for
other types of corporations included in broad money
(such as money market funds) and thus are included with
the deposit-taking corporations subsector in monetary
statistics.
In cases in which monetary statistics also
include flows, they can be compared with the balance
of payments. Balance of payments transactions for a
period may differ from the transactions in foreign assets
and liabilities in the monetary statistics to the extent
that balance of payments statistics exclude transactions
in foreign assets and liabilities between residents. See
also paragraphs – on the possibility of linking
these transactions through the monetary presentation of
the balance of payments.
Government finance statistics
The following items that appear in government
finance statistics should be consistent with their inter-
national accounts equivalents:
• interest payable on general government external
debt;
• grants by general government to nonresidents;
• grants to general government from nonresidents;
• net external financing; and
• external assets and liabilities.
(Direct investment of general government, if any, is
needed to derive aggregates consistent with govern-
ment finance statistics. Thus, it is shown as a supple-
mentary item where relevant.)
9. Numerical example
Table provides a numerical overview of
the international accounts, using data drawn from the
SNA framework presented in Annex . (The numeri-
cal example helps show interrelationships between
items.)
The international accounts data have the
same scope as the rest of the world sector in the SNA.
However, the international accounts are expressed
from the perspective of the resident units, but in
the SNA, the data for the rest of world sector are
expressed from the perspective of the nonresident
units. So, the current account surplus of 13 in Table
is presented as a current external balance for the
rest of the world sector of –13 in the table in Annex
. Similarly, closing assets of 1,346 in the IIP are
shown as the liabilities of 1,346 of the rest of the
world sector in the SNA.
Table . Overview of International Accounts
(Consistent with Data in Annex )1
Balance of payments Credits Debits Balance
Current account
Goods and services 540 499 41
Goods 462 392 70
Services 78 107 –29
Primary income 50 40 10
Compensation of employees 6 2
Interest 13 21
Distributed income of corporations 17 17
Reinvested earnings 14 0
Rent 0 0
Secondary income 17 55 –38
Current taxes on income, wealth, etc. 1 0
Net nonlife insurance premiums 2 11
Nonlife insurance claims 12 3
Current international cooperation 1 31
Miscellaneous current transfers
Adjustment for change in pension entitlements
Current account balance
1 10
13
Capital account
Acquisitions/disposals of nonproduced nonfinancial assets 0 0
Capital transfers
Capital account balance
1 4
–3
Net lending (+)/ net borrowing (–) (from current and capital accounts) 10
Financial account (by functional category)
Net
acquisition of
financial
assets
Net
incurrence of
liabilities Balance
Direct investment 8 11
Portfolio investment 18 14
Financial derivatives (other than reserves) and ESOs 3 0
Other investment 20 22
Reserve assets 8
Total changes in assets/liabilities 57 47
Net lending (+)/net borrowing (–) (from financial account) 10
Net errors and omissions 0
Opening Transactions Other changes Closing
International investment position: position (fin. acc.) in volume Revaluation position
Assets (by functional category)
Direct investment 78 8 0 1 87
Portfolio investment 190 18 0 2 210
Financial derivatives (other than reserves) and ESOs 7 3 0 0 10
Other investment 166 20 0 0 186
Reserve assets 833 8 0 12 853
Total assets 1,274 57 0 15 1,346
Liabilities (by functional category)
Direct investment 210 11 0 2 223
Portfolio investment 300 14 0 5 319
Financial derivatives (other than reserves) and ESOs 0 0 0 0 0
Other investment 295 22 0 0 317
Total liabilities 805 47 0 7 859
Net IIP 469 10 0 8 487
Note: ESO = employee stock option.
1The SNA tables in Annex use instruments rather than functional categories. At the end of Annex , international accounts data are presented in terms of
instruments and the derivation of functional category data from instrument data is shown.
Box . Data Quality Assessment Framework
This table shows the two-digit level of the IMF’s data
quality assessment framework, as at the time of publica-
tion. More detail of the framework on the specific aspects
for balance of payments is available on the IMF website.
New versions will be posted on the IMF website as they
are developed.
Quality dimensions Elements
0. Prerequisites of quality Legal and institutional environment—The environment is supportive of statistics.
Resources—Resources are commensurate with needs of statistical programs.
Relevance—Statistics cover relevant information on the subject field.
Other quality management—Quality is a cornerstone of statistical work.
1. Assurances of integrity Professionalism—Statistical policies and practices are guided by professional
The principle of objectivity in principles.
the collection, processing, and Transparency—Statistical policies and practices are transparent.
dissemination of statistics is Ethical standards—Policies and practices are guided by ethical standards.
firmly adhered to.
soundness Concepts and definitions—Concepts and definitions used are in accord with
The methodological basis for internationally accepted statistical frameworks.
the statistics follows inter- Scope—The scope is in accord with internationally accepted standards, guidelines,
nationally accepted standards, or good practices.
guidelines, or good practices. Classification / sectorizations—Classification and sectorization systems are in
accord with internationally accepted standards, guidelines, or good practices.
Basis for recording—Flows and stocks are valued and recorded according to
internationally accepted standards, guidelines, or good practices.
3. Accuracy and reliability Source data—Source data available provide an adequate basis to compile statistics.
Source data and statistical Assessment of source data—Source data are regularly assessed.
techniques are sound and Statistical techniques—Statistical techniques employed conform to sound
statistical outputs sufficiently statistical procedures.
portray reality. Assessment and validation of intermediate data and statistical outputs—Inter-
mediate results and statistical outputs are regularly assessed and validated.
Revision studies—Revisions, as a gauge of reliability, are tracked and mined for
the information they may provide.
4. Serviceability Periodicity and timeliness—Periodicity and timeliness follow internationally
Statistics, with adequate accepted dissemination standards.
periodicity and timeliness, Consistency—Statistics are consistent within the data set, over time, and with
are consistent and follow a major data sets.
predictable revisions policy. Revision policy and practice—Data revisions follow a regular and publicized
procedure.
5. Accessibility Data accessibility—Statistics are presented in a clear and understandable manner,
Data and metadata are easily forms of dissemination are adequate, and statistics are made available on an
available and assistance to impartial basis.
users is adequate. Metadata accessibility—Up-to-date and pertinent metadata are made available.
Assistance to users—Prompt and knowledgeable support service is available.
C. Metadata, Dissemination Standards,
Data Quality, and Time Series
References:
IMF, Dissemination Standards Bulletin Board at
.
IMF, The General Data Dissemination System: Guide
for Participants and Users.
IMF, Special Data Dissemination Standard.
1. Metadata, dissemination standards, and
data quality
Metadata are systematic, descriptive infor-
mation about data content and organization. They
provide information on the concepts, sources, and
methods underlying the data and therefore help users
to understand and assess the characteristics of the
data. Statistical compilers should provide metadata to
their users because metadata are an integral part of
the publication of statistics.
Good dissemination practices are essential in
addition to good data compilation. As well as provi-
sion of metadata, aspects of good dissemination prac-
tices include predictable release schedule, availability
of publications, and identification of internal govern-
ment access to statistics before public release. In recent
years, international guidelines have been developed on
good data dissemination practices, namely, the IMF’s
General Data Dissemination System and Special Data
Dissemination Standard.
The IMF’s Data Quality Assessment Frame-
work identifies aspects of data quality, including the
definitions and sources of data as well as the dissem-
ination and institutional aspects. Box shows the
broadest headings of the framework.
2. Time series
Reference:
IMF, Quarterly National Accounts Manual, Chap-
ter VIII, Seasonal Adjustment and Estimation of
Trend-Cycles, and Chapter XI, Revision Policy and
the Compilation and Release Schedule.
While the tables included in the Manual have
been designed to highlight classifications and inter-
relationships, tabulations for users will generally use
time series. Good practices in the compilation of inter-
national accounts for time series analysis include the
following:
(a) Consistency over time in concepts and compila-
tion practices to minimize “breaks” and “steps”
in the series—where changes in definitions and
techniques are implemented, they should be
clearly identified to data users and the effect
should be quantified, where practical, prefer-
ably with an overlapping period;
(b) A transparent way of handling of revisions—
revisions to data are necessary to account for
revised methods and more recent information. The
revision of data should be dealt with through a pre-
dictable and documented policy. The causes and
sizes of significant individual revisions should be
identified. Revision studies should be made to iden-
tify the size and any bias of past revisions. This will
help to refine preliminary data and to define the
optimum revision cycle that is largely driven by the
availability of major data sources; and
(c) Consistency of available annual, quarterly,
and monthly data—the monthly values should
sum to the corresponding quarterly values,
which should sum to the corresponding annual
values.
Seasonal adjustment of monthly and quar-
terly data is potentially useful for time series data in
both analysis and compilation. However, some inter-
national accounts items, especially in the financial
account, may not be suitable for seasonal adjustment
because of the high degree of irregularity associated
with large, one-time transactions.
Annex
Satellite Accounts and Other Supplemental
Presentations
Reference:
2008 SNA, Chapter 29, Satellite Accounts and Other
Extensions.
This Manual shows a standard presentation,
which is designed to be used flexibly and to support
many kinds of analysis. However, it is recognized that
no single framework can meet all the different analytical
interests. Thus, satellite accounts and other supplemen-
tal presentations are encouraged. Such presentations
would be based on the circumstances in each economy
and are not included in the standard components or
memorandum items. They may include data from other
sources that are not necessarily obtained from the inter-
national accounts compilation system.
Satellite accounts provide a framework linked
to the central accounts and that enable attention to be
focused on a certain field or aspect of economic and
social life. Common examples of satellite accounts for
the national accounts include the environment, tour-
ism, and nonprofit institutions. International accounts
have more detailed presentations for direct invest-
ment, portfolio investment, external debt, remittances,
tourism, and reserves. The analytic and monetary pre-
sentations are discussed in Chapter 14. Statistics on
activities of multinational enterprises (as discussed
in Appendix 4) are also a related data set. These pre-
sentations use the basic framework as a starting point
but differ by adding detail or other information, or by
rearranging information, to meet particular needs. Use
of the basic framework as a starting point increases
the ability to relate the topic to other aspects of the
economy while maintaining international compara-
bility. Specific manuals and guides are produced on
some of these topics. While the term satellite accounts
suggests a major set of data, other supplemental pre-
sentations are encouraged. This Manual refers to
supplementary items as possible additional data on a
smaller scale than a full satellite account. The range
of supplementary data is wide and can be developed
according to national circumstances.
Annex
Overview of Integrated Economic Accounts
Table . Overview of Integrated Economic Accounts (from 2008 SNA)
Production account
Uses
Nonfinancial Financial General Total
Rest
of the
Goods
and
Transactions and balancing items corporations corporations government Households NPISHs economy world services Total
Imports of goods and services 499 499
Imports of goods 392 392
Imports of services 107 107
Exports of goods and services 540 540
Exports of goods 462 462
Exports of services 78 78
Output 3,604 3,604
Intermediate consumption 1,477 52 222 115 17 1,883 1,883
Taxes on products
Subsidies on products (–)
141
–8
141
–8
Value added, gross/Gross domestic product 1,331 94 126 155 15 1,854 1,854
Consumption of fixed capital 157 12 27 23 3 222 222
Value added, net/Net domestic product 1,174 82 99 132 12 1,632 1,632
Generation of income account
Uses
Compensation of employees 986 44 98 11 11 1,150 1,150
Wages and salaries 841 29 63 11 6 950 950
Employers’ social contributions 145 15 35 0 5 200 200
Taxes on production and imports 235 235
Taxes on products 141 141
Other taxes on production
Subsidies
Subsidies on products
Other subsidies on production
88
–35
4
0
1
0
0
–1
1
0
94
–44
–8
–36
94
–44
–8
–36
Operating surplus, net 135 34 0 69 0 238 238
Mixed income, net 53 53 53
Allocation of primary income account
Uses
Compensation of employees 6 6
Wages and salaries 6 6
Employers’ social contributions 0 0
Taxes on production and imports 0
Taxes on products 0
Other taxes on production 0
Subsidies 0
Subsidies on products 0
Other subsidies on production 0
Property income 134 168 42 41 6 391 44 435
Interest 56 106 35 14 6 217 13 230
Distributed income of corporations
Reinvested earnings on foreign
direct investment
47
0
15
0
62
0
17
14
79
14
Other investment income 47 47 0 47
Rent
Balance of primary income, net /
National income, net
31
97
0
15
7
171
27
1,358
0
1
65
1,642
65
1,642
Table (continued)
Production account Resources
Nonfinancial Financial General Total
Rest
of the
Goods
and
Transactions and balancing items corporations corporations government Households NPISHs economy world services Total
Imports of goods and services 499 499
Imports of goods 392 392
Imports of services 107 107
Exports of goods and services 540 540
Exports of goods 462 462
Exports of services 78 78
Output 2,808 146 348 270 32 3,604 3,604
Intermediate consumption 1,883 1,883
Taxes on products
Subsidies on products (–)
141
–8
141
–8
Generation of income account Resources
Value added, net / Net
domestic product 1,174 82 99 132 12 1,632 1,632
Compensation of employees
Wages and salaries
Employers’ social
contributions Taxes
on production and
imports
Taxes on products
Other taxes on production
Subsidies
Subsidies on products
Other subsidies on
production
Allocation of primary income account Resources
Operating surplus, net 135 34 0 69 0 238 238
Mixed income, net 53 53 53
Compensation of employees 1,154 1,154 2 1,156
Wages and salaries 954 954 2 956
Employers’ social
contributions 200 200 0 200
Taxes on production and
imports 235 235 235
Taxes on products 141 141 141
Other taxes on production 94 94 94
Subsidies –44 –44 –44
Subsidies on products –8 –8 –8
Other subsidies on production –36 –36 –36
Property income 96 149 22 123 7 397 38 435
Interest 33 106 14 49
