Statistical Office of Montenegro - MONSTAT

Department for short-term indicators

IV Proleterske br. 2 , 81000 Podgorica Montenegro 

The aim of the annual survey of industrial production (PRODCOM) is to provide data on industrial production and turnover, on an annual basis, real production (in the context that present data in particular on the service produced quantities), and the quantity and value of sold production.

PRODCOM term comes from the French language "PRODuction COMmunautaire" -production community and refers to the production in the sectors of mining and quarrying and Manufacturing the Classification of Activities 2010.

Classifications used in the survey on industry are:

1. International  classification: NACE Rev.2
2. International commodity classification: PRODCOM List

Reporting units are enterprises or KAUs whose main activity is industry and who are in the Central Register of the Commercial Court to the Classification of economic activities registered in the section B (Mining and quarrying) and C (Manufacturing).

The sample frame was based on the data from the Business Register of the Statistical Office of Montenegro and includes all active businesses in these activities.

From the frame are excluded companies and KAUs whose turnover is equal to zero. The list of reporting units includes all enterprises or KAUs with 5 and more employees and to produce quantity of product higher than measurement units proposal in PRODCOM list. 

The product: is a result of some industrial activities and is defined by the Nomenclature of Industrial Products for the annual survey of industrial production. The term product is used as a general, both for products that have a physical dimension, and industrial services. A finished product is any product that has reached such a degree of processing, so that the Nomenclature of Industrial products for the annual survey of industrial production given specific code and a specific name. The product is finished when its correctness checking product quality control. Defective products are not considered as finished products.

The stocks of finished products at the begining of the year: means the quantity of the stock transfer from the previous year, with the quantities of the warehouse books in line with the established real situation after inventory.

Real production: represents the total production of the product, expressed in the appropriate measure unit, refers to the period that corresponds to the calendar year. It refers to the production which was completed in the year for which the report is submitted on the territory of Montenegro.

Under the service production: refers to the production using customer's raw materials and for his account, so that the producer does not appear as the owner of the goods, but only as service executor. Service production is presented with code, name and unit of measure provided for a given product, but in a separate row, with a special code in the column "type of production", which means the service.

Quantities consumed for further production: this item includes the consumption of products produced within the economic entity (reporting units). This is known as internal realization.

The stocks of finished products at the end of the year: means the quantity of unsold products held by the producer at 31st December of the reporting year.

Observation units for covering of industrial production (PRODCOM) are enterprises (companies) with 5 or more employees, with a turnover reported in the balance sheet for the previous year, whose main activity is industrial production (i.e. registrated in sectors B and C of Nace Rev.2 Classification), as well as KAU of companies which carrying out the industrial production.

Reporting units are enterprises or KAUs whose main activity is industry and who are in the Central Register of the Commercial Court to the classification of economic activities registered in the section B (Mining and quarrying) and C (Manufacturing).

Industrial data refer to the territory of Montenegro.

The data are available from 2006. All data are in NACE Rev2.

Not applicable.

Sold production - in Euro.

Volume of production are measured in following measurement units (m2, m3, t, thousand of effective work, hl).

Data are collected in reference to period of year 2022

The legal basis for the implementation of annually survey of industrial production is the Law on Official Statistics and Official Statistical System of Montenegro ("Official Gazette of Montenegro", No. 18/12 and 47/19) and Annual plan of statistical surveys.

Definitions of main variables and methodologies for the calculation of main variable and methodology for calculation are fully harmonized with the Eurostat recommendations in area of PRODCOM statistics (Council Regulation No 3924/1991, Council Regulation No 912/2004 and Annual Commission Regulation for the PRODCOM list.

Signed agreement on cooperation with the official statistical producers:

 1. Customs Administration

 2. Tax Administration 

 3. Ministry of Finance

 4. Central Bank of Montenegro

 5. Trilateral agreement (MONSTAT, Ministry of Finance, and Central Bank of Montenegro)

 International institutions: 1. EUROSTAT 2. UN organizations 3. IMF 4. World Bank

Articles 53-60 of the Law on Official Statistics and Official Statistical System (Official Gazette of Montenegro No 18/12) provide a framework for protection, use, and transmission of confidential data. MONSTAT has produced two comprehensive rulebooks that cover the procedures for individual data protection as well as keeping individual records. With purpose of the meeting legal framework on functioning of security system and statistical confidentiality there was adopted the Rulebook on Keeping Statistical Data by which Manner, Time, Technical Conditions and Organization of Statistical Data Storage to Prevent Their Destroying, Misappropriation, and Unauthorized Use is Regulated as well as the Rulebook on Contents and Manner of Keeping Records on Users of Individual Statistical Data by which contents and manner of keeping records on users of individual statistical data is regular.   Pursuant to the Article 59, an access to the confidential data is limited to persons performing duties and tasks of official statistical producer and up to the stage the data are necessary for official statistical production. Persons that performs duties and tasks within official statistical producers must sign the statement on respecting the principle of confidentiality.  Law on Official Statistics and Official Statistical System is aligned with the Regulation No 223/2009 and the Regulation (EU) 2015/759 from 29 April 2015 that also regulate confidentiality provisions.   The Government of Montenegro adopted the Statement on Commitment of Confidence in Official Statistics (Commitment of Confidence).

Confidentiality of data is treated in accordance with policy. Data is published only at a non-confidential level. Individual data is a business secret.

The Law on Official Statistics and Official Statistical System (Official Gazette of Montenegro No 18/12) stipulates that official statistical producers prepare, update, and publish Statistical Release Calendar. It is published on the website of Statistical Office not later than 20 December for the next year, for all official statistical producers that includes date of releasing statistical data. Any change in date of releasing in the Calendar is published in advance in accordance with the Procedure on Unplanned Revisions.

A Release calendar is published on the website. A link to the MONSTAT https://www.monstat.org/uploads/files/O%20NAMA/Kalendar%20objavljivanja%20statisti%C4%8Dkih%20podataka%20za%202021.%20godinu%20%20ENG%20-%20za%20web%20sajt(1).pdf

General aim of official statistical producer is to meet the needs of users, and to make an access to statistical data to users in an understandable manner, simultaneously and under the same conditions. Statistical Office is obliged to produce and disseminate official statistics in objective, transparent and professional manner, so that all users are equally treated.

Annually according to Calendar of Release.

Industrial production data are published according to Statistical Release Calendar in Annually release of Industrial production (PRODCOM), Statistical Yearbook on web site of Statistical Office of Montenegro.

The data are published in a press release (Excel and Word), year book and as dynamic data (Excel).

Data are avaiable on link:https://www.monstat.org/eng/page.php?id=402&pageid=402

The Law on Official Statistics and Official Statistical System (Official Gazette of Montenegro No 18/12) regulates rules under which external users can obtain an access to individual data for needs of research. Article 58 defines types of scientific and research organizations that can obtain such data. Providing individual data without identifier is possible only upon a written request of scientific and research institutions, with purpose of performing scientific and research activities as well as international statistical organizations and statistical producers from other countries. Research entity signs the agreement with Statistical Office, and it signs the statement on respecting the confidentiality principle.   Official statistical producers keeps a separate records on users and purpose of using the statistical data given to these users.

Data on quantity of production, sold production and other are transmitted to Eurostat via eDamis.

On users’ request and on their behalf, statistics may provide the data and information obtained by (special) processing.

A statement of methodology is available on website: https://www.monstat.org/uploads/files/industrija/Methodology_%20Industrial%20production%20(PRODCOM)_2020.pdf

The Law on Official Statistics and Official Statistical System (Official Gazette of Montenegro No 18/12) defines the commitment to quality which ensures that official statistical producers in Montenegro work and cooperate in accordance with the international principles of statistical system quality.   Development Strategy and Programme of Official Statistics for 2014-2018 define the objectives of development. One of objectives is quality management via monitoring the implementation of European Statistical Code of Practice.   Pursuant to the ESS Quality Declaration, Article 338 of the Contract on EU Functioning, Regulation 759/2015 and Regulation 223/2009 as well as European Statistical Code of Practice, the following documents are in adoption procedure:  1. Quality Strategy of Statistical Office, 2. Guide for Implementation of Quality Strategy in Statistical Office.   3. Implementation Plan

Statistical Office has chosen the implementation of elements of TQM (Total Quality Management) model that foster development and improvement of functioning of:  - Institution,   - Official statistical result production, and   - Individual.   Within middle-term deadline, Statistical Office has chosen the TQM implementation through the following objectives:  1. Strong commitment to users and other interested parties,  2. Quality statistical processes and products,  3. Professional orientation of staff members,  4. Constant improvements,  5. Reduction of overburden of reporting units.

Quality is monitored throughout all stages of data production, by the responsible statisticians, according to specifications for concrete surveys. Data collection, data capture and processing are usually subject to this monitoring (similarly as timeliness and punctuality).

In the framework of the organization of statistical surveys, selected quality aspects are part of preparing staff involved in statistical production.

Main users of data are classified into two groups:

1. International data users: Eurostat, United Nations and International Monetary Funds;
2. National data users: Ministry of Finance, Ministry of Economy, Chamber of Commerce, research institutions, companies, statistics of national accounts and other sectors inside MONSTAT, as well as general public.

The data which are required by Eurostat are sent in a special form (ges format) through the portal eDAMIS.

According to regulations for PRODCOM statistics (Council Regulation No 3924/1991 and Council Regulation No 912/2004), Eurostat requires sending the following variables: production, value of sold production, volume of sold production. MONSTAT sends  required variables.

The data which are sent to Eurostat exclude VAT, and national users require industrial turnover  excluding VAT.

Industrial production is a key indicator which domestic users need. Users’ requirements are obtained usually by post, phone or mail. All users requests during 2022 are fulfilled, which means that the full rate in relation to the requests of domestic users is 100%.

Customer satisfaction is available on https://monstat.org/uploads/files/kvalitet/2.%20Izvjestaj%20o%20zadovoljstvu%20korisnika%20-%202022_FINAL%20engleska.pdf

Data are on the level of enterprise and the KAU level. All requested data are provided.

The annually industrial survey is done on the basis of cut-off. Data is obtained by reporting method and are subject to the usual types of errors associated with survey techniques, as well as  measurement errors, processing errors and non-response.

Not applicable. PRODCOM survey is a cut-off survey (with 5 and more persons employed).

Coverage error is the divergence between the frame population and the target population. Eventual discrepancies between the units reported in the frame and the target population unit. The coverage errors include: over – coverage and under – coverage. Over - coverage is appearing when a company which is registered in section B and C (the area that is the subject of observation) deliver information to deal with the some other activity (not industrial), and in case when the company is closed. Only 2.5% of the units in the list of reporting units in 2021 are defined as over - coverage, which did not affect the final result. Under - coverage can cause an underestimation, because those units that have remained outside the frame can affect the final result. For this reason, the real impact assessment units which are not included in the coverage. The under - coverage includes units engaged in industry, and are registered in other activities, as well as those companies which are registered in the course of the observed year, and beyond the frame for the choosing of the sample. Share of under - coverage in 2021 was 11.5%.

Measurement errors are errors that occur during data collection and cause recorded values of variables to be different from the true ones. Indirect analysis based on the results on editing phase is implemented for correction.
Processing errors: Once data have been collected, they pass through a range of processes before the final compilation (estimates, etc.) are produced: coding, keying, editing, imputing, tabulating, etc. Errors introduced at these stages are called processing errors.
Non-response errors occur when the survey fails to get response to one, or possibly to all questions of the survey.

The unit non response rate is calculated as the ratio of the number of units which did not responded to the total number of eligible units (unweight rate). Average unit non response rate in 2022 was about 10.0%. The item non response rate is calculated as the ratio of the eligible units which have not responded to a particular item and the in-scope units that are required to respond to that particular item. Average item non response rate in 2022 was very small. 

PRODCOM data are published 180 days after the end of the reference period.

Data are sent to Eurostat 181 days after the end of the reference year.

Methodology of our industrial survey is the same as in other European countries, that is the reason why our data are comparable geographically with data of other EU countries.

Comparable data are published since 2010 year on the MONSTAT website > http://monstat.org/eng/page.php?id=507&pageid=34

In some cases, data from other areas of economic statistics (foreign trade, personal consumption of the population, …) can be used to do the cross-checking of the data.

Data are internal coherent. Higher level aggregations are derived from detailed indices according to well-defined procedures. Data are coherent with the national accounts.

Financial resources required for the implementation of this survey are defined by the budget of Statistical Office of Montenegro. 

Statistical Office has adopted the revision policy and it is available on the website https://www.monstat.org/userfiles/file/o%20nama/2017/Revision%20policy.pdf

No revision done yet. Significant revisions have only been made to reflect changes in methodology.

Data are collected on a basis of enterprises and KAU with 5 and more employees of reporting units including Statistical Business Register (SBR) in MONSTAT which are registered in the section B-Mining and quarrying and C-Manufacturing  Nace Rev. 2 classification.

Annualy.

Data are collected through paper questionnaires (by post, email or fax).

Data validation is done throught control of individual data and control of aggregated data.

In order to ensure data quality, simultaneously with collecting and manual coding, data are visually checked by statisticians for missing, invalid or inconsistent questionnaires or values, and if needed manually corrected.

Reporting units are contacted for additional clarifications.

Then checking is done during the process of data entry and after data entry. Data checking is performed in accordance with the defined criteria for control (automatic validation) and error corrections are carried out.

Data are compared with the previous year. If necessary, the respondents are contacted in order to clarify the deviation.

There is the remark field in the questionnaire for any explanation of the unit (especially for the case of large increase or decrease in turnover compared to the previous year).

Moreover, there is possibility to report the corrections of turnover for the previous year.

All results from the survey of industrial production (PRODCOM) are processed at the level of individual products from the PRODCOM list, as well as the value of sales of the product, taking into account the protection of individual data.

The PRODCOM survey uses different concepts of production for which expression exist special rules (coding, evaluation, etc.). Terminology and definitions are entirely taken over from the definition laid down for the PRODCOM EU survey. Reporting unit is obliged to consider them well before completing the questionnaire, in order to avoid erroneous presentation of data on industrial production in PRODCOM survey.

Data are not adjusted for calendar or seasonal effects.

Not applicable.