Eesti Pank (Bank of Estonia)

Statistics Department

Estonia pst. 13

15095 Tallinn

Estonia

The different domains relevant for external sector statistics (Balance of Payments -BOP, International Investment Position - IIP, Foreign Direct Investment - FDI, and International Trade in Services - ITS) sent to Eurostat are based on the BOP Vademecum reflecting requirements laid down in the Regulation (EC) No 184/2005 on Community statistics concerning BOP, ITS, and FDI, as amended by the Commission Regulation (EU) No 555/2012 of 22 June 2012 and Regulation (EU) No 2016/1013 of the European Parliament and of the Council of 8 June 2016.

These datasets are broadly in line with the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6), the OECD Benchmark Definition of Foreign Direct Investment (BD4) and the Manual on Statistics of International Trade in services 2010 (MSITS 2010).

Monthly and quarterly BOP summarize transactions between residents and nonresidents during a specific period. BOP data consist of the goods and services account, the primary income account, the secondary income account, the capital account, and the functional categories of the financial account (direct investment, portfolio investment, financial derivatives and employee stock options, other investment and reserve assets). Differences between the current and capital account on the one hand and the financial account on the other hand are visible under Net errors and omissions that result from imperfections in source data, inconsistent reporting by enterprises and compilation issues. 

Quarterly IIP shows for a country all financial claims on nonresidents and a country’s liabilities to nonresidents at a certain point in time. The breakdown follows the functional categories of the financial account (direct investment, portfolio investment, financial derivatives (other than reserve assets) and employee stock options, other investment, and reserve assets). The sign of the balance shows whether the domestic economic sectors have a net creditor or net debtor position vis-à-vis other countries. The other changes in financial assets and liabilities accounts (revaluations due to exchange rate, revaluations due to other price changes and other changes in the volume) reconcile the balance of payments and IIP for a specific period, by showing changes due to economic events other than transactions between residents and nonresidents.

Annual FDI statistics (consisting of financial account transactions, current account primary income figures and IIP position data) is a category of cross-border investment associated with a resident in one economy (direct investor) having control or a significant degree of influence on the management of an enterprise that is resident in another economy (direct investment enterprise). By convention, such a lasting interest exists when a direct investor owns 10% or more of the voting power or the equivalent (for an unincorporated enterprise). Operational definitions of control and influence are explained in BPM6 § 6.12. Furthermore, the definition of direct investment is the same as in the fourth edition of the OECD Benchmark Definition of Foreign Direct Investment.

Annual ITS statistics record services transactions between residents and non-residents and cover the following categories: manufacturing services on physical inputs owned by others; Maintenance and repair services, not included elsewhere; transport; travel; construction; insurance and pension services; financial services; charges for the use of intellectual property, not included elsewhere; telecommunication, computer and information services; other business services; personal, cultural and recreational services; and government goods and services, not included elsewhere. The services categories are listed in the Extended Balance of Payments Services Classification (EBOPS 2010).

Classification used for the BOP, IIP, FDI and ITS statistics are in broad conformity with guidelines outlined in the relevant manual (e.g., BPM6, BD4).

Nonfinancial transactions in the BOP are generally grouped according to their nature and characteristics. Produced assets are covered in the goods and services account. Primary income captures returns for the provision of labour and financial assets and for renting of natural resources. Secondary income captures further redistribution of income through current transfers, such as by governments, private households or charitable organization in cash or in kind. The capital account is split into gross acquisitions and disposals of nonproduced nonfinancial assets and other capital transfers.

Positions and flows of financial assets and liabilities are primarily grouped according to the BPM6 functional categories. Five functional categories of investment are distinguished: (a) direct investment, (b) portfolio investment, (c) financial derivatives (other than reserves) and employee stock options, (d) other investment, and (e) reserve assets. These functional categories reflect on economic motivations and patterns of behaviour. Positions, the associated income and financial account transactions, and other changes are based on three broad categories of financial assets and liabilities: (1) equity and investment fund shares, (2) debt instruments, and (3) other financial assets and liabilities.

Annual FDI flows are classified according to the directional principle, that is grouping the FDI transactions according to the status of the resident entity; 1) FDI abroad, if the resident entity is the direct investor or, in the case of transactions between fellows companies, if the “Ultimate Controlling Parent (UCP)” is also located in the compiling economy,  2) FDI in the reporting economy, if the resident entity is the direct investment enterprise or, in the case of transactions between fellows companies, if the “Ultimate Controlling Parent (UCP)” is not located in the compiling economy. In the directional presentation, reverse investment can be seen as equivalent to the withdrawal of investment. The instrument classification differentiates between equity (other than reinvestment of earnings), reinvestment of earnings and debt instruments.

Annual FDI income shows amounts payable and receivable between resident and non-resident entities in return for providing financial direct investment assets to the rest of the world, or incurring direct investment liabilities vis-à-vis the rest of the world. The instrument classification differentiates between dividends, reinvested earnings, and income on debt.

FDI positions are also classified according to the directional principle, split into net FDI positions abroad and net FDI positions in the reporting economy. The instrument classification differentiates between equity (including reinvested earnings) and debt instruments.

For all FDI statistics, the geographical allocation is made according to the economic residence of the immediate direct investor or immediate direct investment enterprise, and the recommended classification by activity is that of the direct investment enterprise (to avoid asymmetry issues).  The industrial activity level is based on ISIC4/NACE Rev.2.

International Trade in Services data are presented in line with the Extended Balance of Payments Services Classification (EBOPS 2010).

Known deviations:

Regulation (EU) No 549/2013 (ESA2010) (par. 5.119) and the BPM6 Manual (par. 5.42) provide that funds between deposit-taking corporations are always recorded as deposits. Concerning deposit/loans liabilities of deposit-taking corporations to other counterparts, BPM6 foresees the additional convention that these are to be recorded as deposits, irrespective of the maturity, while ESA 2010 restricts this to short-term funds. Concerning deposit/loans assets of deposit-taking corporations vis-à-vis other counterparts BPM6 foresees the additional convention that these are to be recorded as loans, while ESA 2010 (in § 5.118) makes a similar reference for short-term loans.

Specifically for euro area: The definition of reserve assets is in line with BPM6 guidelines. However, as a member of the euro area, the definition of monetary reserves in a MS’s BOP includes (inter alia) only those liquid claims denominated in foreign currency that the MS’s central bank holds on non-euro area residents. Claims on residents of other euro area countries, regardless of the currency, are part of other external assets.

There is no further country-specific deviations from the classification system based on the Manuals.

Institutional units are grouped into institutional sectors according to similar economic objectives, functions, and behaviour.

The sector classifications based on the BOP Vademecum are:

Central bank (S.121); Monetary Financial Institutions (MFI) other than central bank (S.122) (incl. Deposit-taking corporations except the central bank; Money Market Funds (S.123)); General government (S.13); and Other sectors.

The Other Sectors consist of Financial Corporations other than MFIs (S.12); Non-Financial Corporations (S.11); Households (S.14); and Non-profit institutions serving households (S.15).

Exception to BPM6:

A deviation from the BPM6 sector classification is that Money Market Funds are part of Other sectors (in BPM6) whereas they are part of the MFI sector for European Statistics according to the Vademecum.

There is no further country-specific deviations from the sector classifications listed above.

The overall conceptual framework of BOP, IIP, FDI and ITS are in broad conformity with the most recent manuals as well as the EC Guidelines and Eurostat’s Vademecum.

Statistical concepts and definitions relate to basic internationally accepted standards and guidelines for external sector statistics; for instance:

• All resident-nonresident transactions covered;
• The concept of residency adhered to;
• For the BOP, the concept of gross reporting is followed for the current and capital account; and the net basis for financial account transactions (separately for the individual asset and liability components);
• The change of economic ownership principle soundly applied;
• FDI is defined as equity ownership representing 10 percent or more of the voting power;
• The accrual basis is broadly applied;
• Market values or appropriate substitute measures are used;#
• the residence of Special Purpose Entities (SPEs) is attributed to the economy in which they are legally domiciled or incorporated;
• Overall, the classification, netting and ordering in the IIP is consistent with BPM6; current, capital, and financial accounts of the balance of payments statement are defined according to the BPM6.

Known Deviation (Source: Vademecum):

BOP/IIP data are to be compiled following the debtor/creditor approach, instead of the “transactor” approach. In other words, the geographical allocation of assets/credits is to be done on the basis of the residency of the issuer/debtor and not of the “transactor”. This is particularly relevant for portfolio and direct investment functional categories, which record tradable instruments. This approach is to be followed consistently in the geographical and sector allocation of investment income, financial transactions and stocks.

There is no country-specific deviations.

Institutional units are defined in conformity with BPM6 and relate to those that have a predominant centre of economic interest in the country. In principle, any individual, corporation or other institution that provides information on the transactions/positions between the residents and non-residents of a country during a given period is included. Resident institutional units engaged with nonresidents also cover in principle:

-       incorporated or unincorporated affiliates of nonresident companies; and SPEs with little or no physical presence;

-       resident territorial enclaves in the rest of the world (e.g., embassies, military basis);

-       free zones/bonded warehouses/factories operated by offshore enterprises under customs control;

-       Citizens who work or live temporarily in another country (seasonal and cross border commuters, students and patients).

There is no country-specific deviations.

Not applicable.

The reference area describes the geographical area covered by the data disseminated. According to the BOP Vademecum, the reference area is the economic territory, country, or region for which external sector statistics are provided. The country code list follows the ISO 3166-1 alpha-2 classification and is a "cross-domain" code list, used also in National Accounts. The codes used for various regional groupings are harmonized across international agencies that use the BOP-DSD.

There is no country-specific inclusions and exclusions.

BOP: 1993Q1 – present; 

Not applicable.

All data sent to Eurostat are in Millions of Euro for Euro Area countries and in Millions of National currency for non-Euro Area countries. The unit of dissemination is Euro.

The monthly (MBOP), quarterly (QBOP) BOP, and quarterly FDI transactions summarize economic transactions between residents and nonresidents during the respective reference period.  The annual ITS dataset summarizes services transactions over the period of one year.

The quarterly IIP statement as well as the annual FDI stock statistics refer to a point in time at the end of the reference period; i.e., the last day of a quarter or year, respectively. The other changes in financial assets and liabilities of the IIP statement (revaluations due to exchange rate, revaluations due to other price changes and other changes in the volume) reconcile the BOP and IIP during a specific period.

Institutional Mandate – at national level and at European level

The statistical activity of Eesti Pank (the Bank of Estonia) complies with the Statistics Act and the EU/ECB legislation.

The responsibility for collecting, processing, and disseminating Estonia’s BOP, IIP, FDI and ITS statistics is assigned to Eesti Pank by Eesti Pank’s Act and by Official Statistics Act. The responsibility for collecting ITS statistics from enterprises and compiling ITS statistics according to the EBS Regulation is assigned to Statistics Estonia.

A Memorandum of Understanding has been concluded between Eesti Pank and Statistics Estonia, which stipulates the exchange of detailed data between the two organizations producing statistics.

Eesti Pank provides data to the European Union (Eurostat) for the purposes of compiling the quarterly and annual European Union (EU) b.o.p. on the basis of the European Parliament and Council Regulation (EC) No. 184/2005 as last amended by Commission Regulation (EU) 2016/1013.

The Official Statistics Act § 35 allows confidential data to be shared between producers of official statistics as needed for the area of responsibility. Following from that article, data sharing and coordination between Eesti Pank and Statistics Estonia is set out in a Memorandum of Understanding (MoU) that was signed in 2017.

Under § 29 of the Official Statistics Act, producers of official statistics primarily use input data collected in administrative records and other databases, and data resulting from or collected in the course of the activities of state and local government agencies and other legal persons. Following from this provision, data sharing and coordination between Eesti Pank and other national data producing agencies are set out in bilateral agreements.

Under § 34-35 of the Official Statistics Act, the agencies conducting official statistical surveys may transmit or disseminate the data collected only in a form that makes it impossible to identify the data subjects directly or indirectly. The producer of official statistics may disseminate data that permit direct or indirect identification of a statistical unit for statistical or scientific purposes in accordance with § 38 of the Act without the consent of the person concerned.

A regulation of the Governor of Eesti Pank establishes the requirements for the organisational, information technology, and physical protection of the data collected and processed by Eesti Pank.

The staff members of Eesti Pank who have access to micro data have signed confidentiality declarations stating that they will not reveal data on individuals or individual reporters. The staff are also subject to sanctions under § 40 of the Official Statistics Act in the case of unlawful dissemination of data that allows a respondent to be identified or if data are used for any other purposes besides statistics.

Balance of payments microdata can be disseminated for scientific/reseach purposes only. Unpublished non-confidential data can be disseminated to an ad-hoc request if this does not breach confidentiality requirements. 

Furthermore, European Council Regulation (EC) No 2533/98 amended by Council Regulation (EC) No 951/2009 (Article 8) defines the protection and use of confidential statistical information collected by the ESCB.

BOP Vademecum (2021): Chapter V “Statistical confidentiality” of Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics regulates protection and transmissions of confidential data within ESS and ESCB. Confidentiality status attribute is mandatory in BOP and FDI DSDs and thus each observation has to be flagged with a confidentiality status.

When the information is already released and disseminated by the national compiler (e.g. it is published on the national compiler's website) applying confidentiality status attributes such as C "Primary confidential statistical information", D “secondary confidentiality set and managed by the national compiler” or N "Not for publication, restricted for internal use only" is not justified.

Quality issues should be much less frequent for quarterly BOP and IIP data. The confidentiality status attribute "Not for publication, restricted for internal use only" - N flag – shall be used conservatively and rather in cases of more detailed breakdowns (e.g. geographical, instrument or sector breakdown). Using confidentiality status (C or D or N flags) to suppress publication of data with insufficient quality should be avoided. Observation status with U flag (low reliability) should be used instead. This would indicate existing observations and, at the same time, users will be aware of the low quality assigned.

For aggregate outputs:

Only primary confidentiality treatment is applied for data sent to Eurostat. Cell is confidential when there are less than 3 reporters behind the number. The same rule is not applied for enterprises which belong to government or banking sector and whose data are public anyway. 

Secondary confidentiality is also applied when publishing data.

Micro data disseminated for scientific purposes are available only anonymously, under strict control.

Eurostat release calendar can be found under http://ec.europa.eu/eurostat/news/release-calendar

Data publishing dates are given in the section Release calendar on the website of Eesti Pank.

An advance release calendar with the precise release dates for the coming year is available by no later than 30 September.

The data are released simultaneously to all interested parties at 8:00 (local time) on the Eesti Pank website.

Release calendar is available on the Eesti Pank's website

The BOP/IIP data are released simultaneously to all interested parties at 8:00 (local time) on the Eesti Pank website according to the Release calendar.

Eurostat Website:

BOP: monthly and quarterly

FDI flows and stocks: annually

IIP: quarterly and annually        

ITS: annually

Simultaneously with the monthly and quarterly data dissemination, a short monthly statistical release on BOP and a quarterly statistical release on BOP and IIP available in Estonian and in English are disseminated on the Eesti Pank's website in the press releases section.

Eesti Pank releases the statistics by electronic publication only.

At Eurostat, the database for external sector statistics gives access to the following statistics:

• Monthly and quarterly BOP and quarterly IIP statistics;
• Annual data on ITS;
• Annual data on FDI positions, transactions and income;
• Detailed data on international transactions involving the European institutions.

Harmonized data is available for the European Union, the euro area, the EU Member States, the United Kingdom, EFTA countries, candidate and potential candidate countries.

 https://ec.europa.eu/eurostat/web/balance-of-payments/data/database

Not applicable.

Monthly and quarterly BOP data, IIP and ITS data are disseminated and accessible at national level by Eesti Pank's website

BOP/IIP microdata can be disseminated for scientific/reseach purposes only. Unpublished non-confidential data can be disseminated to an ad-hoc request if this does not breach confidentiality requirements. 

There is equal access for all users.

There is user support for data access and interpretation via the statistics module of the Eesti Pank website. 

User support is also available by phone.

The dissemination of data to Eurostat, ECB and other international organisations takes place according to data exchange calendars.

Provision of data to the national accounts and ITS statistics according to the EBS Regulation, is carried out in accordance with the Memorandum of Understanding concluded between Eesti Pank and Statistics Estonia (see p.6.1)

Not applicable.

A general methodological note and definitions are available at the External Sector section at the Eesti Pank’s website which is continuously updated.

Not applicable.

Not applicable.

This indicator refers to the quality assurance framework (QAF) in place within an organisation to manage the quality of statistical products and processes.

Eesti Pank follows the recommendations on organisation and management of quality given in the Code of Practice for European Statistics (CoP) and the implementation guidelines given in the Quality Assurance Framework of the European Statistical System (QAF).

The data collection and compilation system contains built-in quality control tools for syntactical, logical and plausibility checks. A special IT application is used to discover outliers on the level of single reporting units. Response rates are closely monitored. The staff evaluates the plausibility of the data and make crosschecks with other available data where appropriate.

Trade-offs between quality, cost and respondent burden are discussed in budget planning processes and consultations with data suppliers, and in connection with the involvement of Eesti Pank in international forums such as the ECB’s Statistics Committee, which advises the ECB Governing Council on the guidelines for statistical production.

In its commitment to the highest quality standards in the compilation of statistics, Estonia has adhered to the IMF’s Special Data Dissemination Standard data initiative at the highest level (SDDS+)

This indicator refers to the Eurostat Quality Report Chapter 7 and 8: Overall Assessment.

The quality of the BoP, IIP, ITSS and FDI statistics compiled by Estonia is high and in line with the international requirements.

Estonia has a small, open and low-concentrated economy where “big players” vary from period to period. This may cause realatively volatile data, essential revisions and volatile errors and omissions. The close cooperation and common revision policy between Eesti Pank and Statistics Estonia, as well as the use of quality control tools and the dedicated IT application for data  validation process has helped to improve the quality of balance of payments statistics and to ensure consistency with national accounts.

To guarantee the quality of results, European statistics shall be developed, produced and disseminated on the basis of uniform standards and of harmonised methods. In this respect, Regulation (EC) No 223/2009 of the European Parliament and of the Council quality criteria (a) ‘relevance’ refers to the degree to which statistics meet current and potential needs of the users. Meeting the requirements of the EC Regulation on community statistics concerning balance of payments, international trade in services and foreign direct investment confirms relevance for the user “Eurostat” as recipient of the data sets on behalf of its user community.

Furthermore, relevance is also indirectly accomplished by countries participating in domain specific committees and working groups as well as the worldwide update of the manuals whose aim it is to keep the standards and statistics as relevant as possible going forward.

The external sector statistics provide key information for economic policy monitoring and decision making, for forecasting, for administrative purposes, for informing the general public about economic developments (directly or indirectly via news agencies), and as input for economic research.

At national level, the balance of payments statistics is used in the compilation of the national accounts. Ministry of Finance, Ministry of Foreign Affairs, Ministry of Economic Affairs, scientific and academic communities and economic researchers are the entities who most use external sector data.

The balance of payments statistics constitutes Estonia's contribution to the compilation of the EU/Euro Area Balance of payments.

Eesti Pank has an annual procedure for consulting internal users of statistics and this gives it a picture of user satisfaction and requirements. Other channels for monitoring user relevance are: a) User statistics on the statistics dissemination web portal; b) Media coverage; and c) Regular enquiries and requests from external users. New and emerging data requirements are identified, discussed, and, if supported by the Executive Board of Eesti Pank, switched to the Statistical Programme.

The monitoring of international data user requirements is ensured by participation in numerous international and European committees and working groups, where there are also representatives of other major data users such as the European Central Bank, the European Commission and other international organisations.

External users are IMF, OECD, Eurostat, ECB, BIS, credit rating agencies and similar private institutions. 

Eesti Pank has an annual procedure for consulting internal users of statistics and this gives it a picture of user satisfaction and requirements.

This section refers to the current Eurostat Quality Report 1.1.1. Data availability- completeness.

Accuracy of data is the closeness of computations or estimates to the exact or true values that the statistics were intended to measure.

Accuracy is being measured using three concepts: Reliability; Vintage Analysis; and Plausibility. See 13.1.

This section refers to the current Eurostat Quality Report Chapter 2.  

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

Not applicable. 

According to the provisions of the Commission Regulation (EU) No 184/2005 and ECB Guideline ECB/2011/23 datasets are reported by countries to Eurostat with the following timeliness:

The BOP regulation defines the timeliness and sets the deadlines for the data transmission to Eurostat as follows:

-      Monthly BOP: 44 days after the end of the reference period;

-      Quarterly BOP, quarterly IIP and quarterly revaluations: 82/85 days after the end of the reference period;

-      ITS: 9 months after the end of the reference period;

-      FDI: 9 months after the end of the reference period (21 months for the activity breakdown).

Not applicable. 

Not applicable. 

Data are delivered on time or before the deadline.

This indicator refers to Eurostat Quality Report 3.1 Punctuality.

Punctuality is calculated as the actual date of data delivery minus the scheduled date of transmission to Eurostat. It shows how many calendar days this was behind (positive value) or ahead of (negative value) the legal deadline.

Coherence refers to the adequacy of the data to be reliably combined in different ways and for various uses.

In the Eurostat Quality Report, the analysis of coherence focuses on two aspects: internal consistency, that examines to which extent data are coherent within the dataset, and external consistency, that examines to which extent data are coherent with others statistics (e.g., NA) obtained by different sources or within different statistical frameworks.

Comparability refers to the measurement of the impact of differences in applied statistical concepts and methodologies, measurement tools and procedures applied, when statistics are compared between geographical areas, sectoral domains (e.g., with QSA, ITGS data) or over time. 

This indicator refers to Chapter 5.3.1 and the corresponding tables of the Eurostat Quality Report: Asymmetries with regard to main ITS and FDI items.

Further information and country-specific feedback is provided below. 

The data are generally considered highly comparable over time. The methodology is revised according to the revisions of the sixth edition of IMF's Balance of Payments and International Investment Position Manual (BPM6). Backward calculations of time series are provided to ensure full time coherence in a case of methodological changes.

Data series for balance of payments and FDI flows are available from 1993 onwards.

Data series for IIP are available from 1996 onwards. 

Data series for FDI are available from 2003 onwards.

Data for detailed ITS are available from 2003 onweards.

Fully detailed data under the BPM6 methodology is available from Q1 2013 onwards. From Q1 2013 all data were collected on a BPM6 basis. For 1993 to 2012 the BPM6 data were derived from BPM5 components within the mandatory items.

Methodological guidelines for compiling BoP, ITS and FDI statistics are defined by the Balance of Payments manual of the IMF (6th edition) and further specified by Manual on Statistics of International Trade in Services of the United Nations and the OECD Benchmark Definition of Foreign Direct Investments (4th edition).

Methodological guidelines for compiling BOP, IIP, FDI and ITS statistics are defined by the BPM6, the Manual on Statistics of International Trade in Services of the United Nations, and the OECD Benchmark Definition of Foreign Direct Investments (BD4). 

The methodology for Goods and Services is outlined in Chapter 10 of the IMF BPM6. For community statistics, countries are expected to record different values for Goods “national” and “community” concepts, if applicable. 

Goods of non-resident companies registered in Estonia for VAT payments only are excluded from exports and imports of goods (IMTS data) for the compilation of the national BOP, provided to the ECB, Eurostat and the IMF. So the residency concept is followed in the goods item.

The national concept is used: both for intra-EU and extra-EU imports, the partner country is the country of consignment as it follows flow of funds concept.

The methodology for Goods and Services is outlined in Chapter 10 of the IMF BPM6.

For financial services: Estonia does not estimate dealers' margins on buying and selling transactions due to lack of information on bid-ask spreads of securities, and any estimations on implicit expenses (except FISIM) have not been included in the balance of payments.

The methodology for Primary Income is outlined in Chapter 11 of the IMF BPM6.

Interest income is recorded predominantly on an accrual basis.

Interest income is adjusted for FISIM exports and imports where relevant.

Dividends are recorded predominantly on an accrual basis. In the case of some data sources (e.g. companies not covered by the survey form), data from the Tax Office are used, which are recorded when paid.

The methodology for Secondary Income is outlined in Chapter 12 of the IMF BPM6.

The definition of the secondary income account is fully in accordance with the recommendations set out in the BPM6.

The methodology for the Capital Account is outlined in Chapter 13 of the IMF BPM6.

EU investment grants are recorded on accrual basis. No deviation from international standards.

The methodology for Direct Investment is outlined in Chapters 6, 8 and Appendix 6 of the IMF BPM6.

There is currently no deviation from international standards.

The methodology for Portfolio Investment is outlined in Chapters 6, and 8 of the IMF BPM6.

There is currently no deviation from international standards.

The methodology for Other Investment is outlined in Chapters 6, and 8 of the IMF BPM6.

There is currently no deviation from international standards.

The methodology for Financial Derivatives is outlined in Chapters 6, and 8 of the IMF BPM6.

There is currently no deviation from international standards.

No more deviation from international standards.

In the last year, there were no changes made to data collection techniques, validation methods or compilation practices.

These indicators refer to Chapter 6 and the corresponding tables of the Eurostat Quality Report: Coherence.

The comparability between BOP, IIP, FDI, ITS and National accounts is ensured by the application of common concepts and definitions of BPM6 and the 2008 SNA/ESA 2010.

Further information and country-specific feedback is provided below. 

Balance of payments data are externally coherent.

Monthly, quarterly and annual statistics are coherent.

This indicator refers to Eurostat Quality Report Chapter 6.2.1: BOP/ITGS reconciliation. The corresponding table – to be completed by countries is part of the Quality Report Annex 2 and is included in the Metadata Handler in form of a separate Excel Sheet.  

ITGS cover goods “which add to or subtract from the stock of material resources of a country by entering (imports) or leaving (exports) its economic territory” (United Nations IMTS: Concepts and Definitions 1998, paragraph 14). This basis differs from the change of ownership between residents and nonresidents required for BOP, so adjustments are needed.

Please refer to BPM6 § 10.17 for cases that are included in the BOP definition of general merchandise because there is a change of ownership of goods between a resident and a nonresident.

Please refer to BPM6 § 10.22 for items to be excluded from general merchandise because there is no international transaction because there is no change of ownership of goods between a resident and a nonresident, or because the goods have no value. 

The differences between BOP/ITGS are presented in Annex 2 of the Estonia’s BOP Quality report. The main source of data for the Goods BOP component is the International Trade in Goods Statistics compiled by the Statistics Estonia based on Intrastat for intra–EU trade and information on extra–EU transactions provided by the Tax and Customs Office (which processes custom trade declarations for export and import of goods to/from non-EU countries).

In order to ensure compliance with the b.o.p. “change in economic ownership” principle, the ITGS data provided by Statistics Estonia are adjusted by Eesti Pank, e.g:

(-) Goods sent abroad or returned after processing (identified according to the nature of transaction codification system)

(+) Merchanting (collected via Eesti Pank’s quarterly survey for enterprises)

(-) CIF/FOB adjustment (calculated according to the CIF/FOB coefficient)

(+) Non-monetary gold sold to a non-resident but not phisically delivered / Non-monetary gold held abroad by a resident

(+) Goods procured in ports by carriers not already included in ITGS

(+) Illegal goods, estimated by the Statistics Estonia for National Accounts purposes

(+) Adjustments for shortages of FTS data

(-) Consistency with other accounts (NAs or business statistics), e.g. quasi-transit

This indicator refers to Eurostat Quality Report Chapter 6.2.2: Consistency with National Accounts. The corresponding tables in the Eurostat Quality Report assess the external consistency between the BOP and Rest-of-the-World Account in NA. As the concepts for the BOP and NA accounting frameworks are, in principle, consistent with one another, an assessment of the consistency concludes on how far these two accounting frameworks have been consolidated with each other. 

Consistency with national accounts is very good. There is practically no differences for periods 2019Q3 – 2022Q1. Differences for 2022Q2 are caused by the fact that by the time of compilation of NA for the last period, only preliminary data for BoP is available. NA figures are adjusted when actual figures for BoP become available.

These indicators refer to Chapter 6 and the corresponding tables of the Eurostat Quality Report: Coherence. 

Balance of payments data are internally coherent. Consistency with integrity rules is excellent.

This indicator refers to Eurostat Quality Report Chapter 6.1.2 Consistency between quarterly and annual data: The Quality Report Tables monitor the progress made in aligning quarterly and annual data.

For example, ITS and FDI annual data are compared with the sum of the corresponding four quarters for partners Extra EU27 and Rest of the World.

Balance of payments data are internally coherent. Consistency between quarterly and annual data is ensured (annual data is the sum of quarterly data).

This indicator refers to Eurostat Quality Report Chapter 6.1.3 Consistency between quarterly and monthly data: Quarters are compared with the sum of the corresponding three months for partners Extra EU27 and Rest of the World for Goods, Services and Secondary Income and partner Rest of the World for Primary Income. The discrepancy, computed as difference between the sum of the monthly and the quarterly data, is also shown as a share of the quarterly value. 

Quarterly and monthly data are consistent.

This indicator refers to Eurostat Quality Report Chapter 6.1.4 Consistency between BOP and IIP figures. 

BoP and IIP data are consistent.

Not applicable. 

Source: A Harmonised European Revision Policy for Macroeconomic Statistics; CMFB October 2017. Macroeconomic statistics, such as national accounts, the balance of payments and the international investment position, are produced from a large variety of data sources. These data sources are reconciled using an approach based on an agreed set of international guidelines. The sources used to estimate macroeconomic aggregates are provided with varying degrees of timeliness, taking up to three years or more in the case of structural sources. As users need national and international data as fast as possible, particularly on certain key aggregates like gross domestic product (GDP), data are produced using the sources and related indicators that are more readily available. As more complete data are obtained from these sources in due course and the structural sources are made available, the statistics are updated to incorporate the new information.

Such revisions of macroeconomic statistics are necessary to improve quality, but can be inconvenient for users. To minimise this inconvenience, revisions should ideally be coordinated within one country, across different statistics, and then across countries. International comparability – and the compilation of EU and euro area aggregate statistics – is hampered when different revision policy schemes are applied in different countries. As the schedule of revision of national accounts and balance of payments statistics varies from country to country, this creates inconsistencies among different statistical domains.

The European Statistical System (ESS) and the European System of Central Banks (ESCB) try to strike the right balance between incorporating the necessary statistical revisions and maintaining an acceptable degree of consistency across domains and countries. To this end, the two systems have worked together to draw up guidelines for a harmonised revision policy for macroeconomic statistics.

A distinction should be made between 'routine' revisions and 'major' or 'benchmark' revisions. Routine revisions refer to the changes made to the economic data published initially and to its subsequent releases for a particular reference quarter or year. The earlier estimates typically undergo the most significant revision. In routine revisions, the number of past periods being revised (the 'depth' of the revision) is typically relatively limited. Benchmark revision is carried out at much longer time intervals. Its purpose is to incorporate the main new data sources and major changes in international statistical methodology (such as ESA 2010 or BPM6). In benchmark revision, many years are open for revision in order to create the longest possible consistent time series.

The National Statistical Offices and the National Central Banks are not legally bound by this common policy, but voluntarily agree to it and commit to gradually implement it with the aim of delivering more consistent statistics to users. The level of adherence to the guidelines of countries' revision policies will be monitored regularly.

In Estonia, common revision policy principles for Bop and NA statistics have been agreed between Eesti Pank and Statistics Estonia.

Upon collection of additional information and changes in methodology, the data of previous periods are revised as follows:

• Regular revision (generally to accommodate new or corrected data or other additional information):
• when the statistics for Q1 and Q3 are first published, the statistics for the preceding quarter only are adjusted;
• when the statistics for Q4 are first published, the statistics for Q1, Q2 and Q3 of the same year are adjusted. If necessary, the quarters of the previous two years may also be corrected, making up to 11 quarters in total;
• when the statistics for Q2 are first released, the data for Q1 and all the preceding quarters for which there are additional data are revised, for up to 17 quarters in total.
• after the completion of the quarterly balance of payments, the monthly balances of payments for that quarter are revised so that the total of the items in the balance of payments for the three months is equal to the total of the same items in that quarter’s balance of payments.
• Extraordinary revision:
• in exceptional cases, when significant errors or omissions have occurred, the data for earlier quarters affected may be revised when new data are released;
• if the methodology or the data collection system changes, data from earlier periods can be adjusted as far back as possible when new data are released;

extraordinary changes are announced publicly in press releases and on the website.

The data revision practice is in line with data revision policy (see p. 17.1)

Not applicable. 

This quality concept refers to whether the composition of data sources (surveys, ITRS (International Transactions Reporting System), administrative data, ITGS, monetary and financial statistics, etc.), in principle, sufficiently covers the compilation of BOP, IIP, FDI and ITS. 

The main data sources are:

Goods: The main sources used in compiling the goods account are the official foreign trade statistics from Statistics Estonia, enterprise surveys run by Eesti Pank (for goods under merchanting, goods acquired for own use and goods procured in ports by carriers), and estimates by Statistics Estonia of illicit trade.

Services:  The services items are compiled mainly from Statistics Estonia’s survey on the International Trade on Services Statistics (from 2021 onwards) and supplemented by data from the ITRS and other administrative data sources (e.g OSS). Data from mobile positioning are also used for travel and the system of accounts of the general government is used for government services.

Primary income:

Compensation of employees: Data related to the compensation of employees are obtained from the Tax and Customs Board and from the ITRS, supplemented with estimations.

Investment income: The data sources used for calculating investment income are enterprise and credit institution surveys, the database of the Estonian Central Securities Depository, the ESCB’s Centralised Securities Database, the tax declarations submitted to the Tax and Customs Board, financial reports of Eesti Pank, the system of accounts of the general government, and estimates of the reinvested income of direct investment companies not included in the survey sample modelled using a model based on the Business Register.

Other primary income:  The main data sources are the system of accounts of the general government, enterprise survey and the ITRS.

Secondary income:

General government:

The main data source is the system of accounts of the general government, which is supplemented with data from the Tax and Customs Board on income taxes and social security contributions received by the general government. The source for grants from the European Union Structural Funds to cover the operating costs of the general government and for payments made by Estonia to the European Union budget is also the system of accounts of the general government.

Other sectors:

The main sources are enterprise surveys, information on cross-border payments (ITRS), and econometric models. Data on grants from the European Union Structural Funds to other sectors come from the Public Sector Financial Statements system.

Capital account: The main sources are enterprise surveys, information on cross-border payments (ITRS), and the system of accounts of the general government.

Direct investment: Data on the share prices of listed companies come from the Estonian Central Securities Depository and the ESCB’s Centralised Securities Database. The main sources for the equity of unlisted companies are the enterprise and credit institution surveys, the business register, the Land Board and the real estate register. Information on debt assets and liabilities comes mainly from the enterprise survey and is supplemented with information on cross-border payments. Data on dividends distributed come from enterprise and credit institution surveys, the Estonian Central Securities Depository and the Tax and Customs Board and are supplemented with information from the ITRS.

Portfolio investment: The main sources for compiling portfolio transactions and positions are the ESCB’s Centralised Securities Database, the Estonian Central Securities Depository, reporting by the Financial Supervision Authority and credit institutions, financial reporting by Eesti Pank, the system of accounts of the general government, and the enterprise survey.

Financial derivatives (other than reserves) and employee stock options: Data on financial derivatives and employee stock options come from enterprise and credit institution surveys, financial reporting by Eesti Pank and the accounts of the general government.

Other investment: The data sources are enterprise surveys, reporting by credit institutions and the Financial Supervision Authority, the accounts of the general government, the real estate register, and the ITRS.

Reserve assets: The data source for reserve assets is the financial reporting of Eesti Pank.

Please refer to Table Data-Sources Detail.

Not applicable.

The following sub-categories refer to the Extended Balance of Payments Services Classification (EBOPS 2010) data collection. The EBOPS 2010 classification provides a breakdown of the Balance of Payments Trade in Services items (debit and credit) as defined in BPM6, by types of services. The classification thereby meets a number of user requirements, including the provision of more detailed information on Trade in services as required in connection with the General Agreement on Trade in Services (GATS).

EBOPS 2010 is a primarily product-based classification of types of services, which in many cases may be described in terms of international classification of products as contained in CPC Ver. 2. However, the classification also includes transaction-based criteria (for example, Travel, Government services, and Construction Services).

The geographical allocation of resident/non-resident EBOPS 2010 transactions are implemented according to the centre of predominant economic interest (residence) of participating units

EBOPS 2010 transactions are in general based on market prices. ITRS data are on cash bases.

EBOPS 2010 transactions are in general recorded on an accrual basis.

In case of a currency conversion the market exchange rate prevailing on the transaction dates is applied.

Manufacturing services on physical inputs owned by others
Maintenance and repair services n.i.e.
Transport
Travel
Construction
Insurance and pension services
Financial services
Charges for the use of intellectual property n.i.e.
Telecommunications, computer, and information services
Other business services
Personal, cultural, and recreational services
Government goods and services n.i.e.

No categories beyond EBOPS2010 is compiled.

After the input data have been accepted by Eesti Pank, there are a number of validation practices in the compilation process for the BOP, IIP and related statistics. The data collection and compilation system contains built-in quality control tools for syntactical, logical and plausibility checks. A dedicated IT application is used to discover outliers on the level of single reporting units. Response rates are closely monitored. The staff evaluates the plausibility of the data and make crosschecks with other available data where appropriate.

Struval/Conval is used for data validation disseminated to Eurostat.

Not applicable.

Not applicable.

Manufacturing services: for non-sampled enterprises, estimates based in the foreign trade statistics are made. For estimates, foreign trade data flows where the transaction type is recorded as “goods for processing in the economy”, “goods after processing in the economy”, “goods for processing abroad” and “goods after processing abroad” are used.

Transport services debit: the value of cif/fob adjustment is compiled on the basis of fixed ratios by countries and by the mode of transportation.

Travel: expenditures of non-registered non-resident short-term workers in Estonia are estimated, based on the Tax and Customs Board estimations on non-registered wages. Expenditures of resident short-term workers abroad are estimated on the basis of the Tax and Custom Board data with one year delay.

Government goods and services n.i.e.: revenues and expenditures of foreign embassies in Estonia are estimated, using a set of data sources (number of foreign embassies in Estonia, number of employees, foreign GDP and wage levels, ITRS data etc).

For monthly and quarterly BoP, current account main items (goods, services, primary account, secondary account), both credits and debits, are seasonally adjusted.

Eesti Pank uses JDemetra + software approved by the European Central Bank for seasonal and calendar adjustment of time series, and time series are adjusted using TRAMO / SEATS based on models.