Statistics Finland

Information and Statistical ​Services

FI-00022 Statistics Finland

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.

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.

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.

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).

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.

Finland

- Including Åland Islands (AX)

BOP data available for statistical years 2006-2022 on monthly level.

ITSS and FDI data available for statistical years 2013-2021 on annual level.

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.

The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics. 

Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.  

Further information: Statistical legislation | Statistics Finland (stat.fi)External link

The Regulation n°184/2005 of the European Parliament and of the Council of 12 January 2005 on Community statistics concerning balance of payments, international trade in services and foreign direct investment (OJ L35/23 of 8/02/2005), was applied as from reference year 2006 onwards. In addition, Commission Regulation (EC) No 601/2006, Commission Regulation (EC) No 602/2006, Commission Regulation (EC) No 707/2009 and Commission Regulation (EU) No 555/2012 have been published (OJ L106/7 and L106/10 of 18/04/2006), respectively implementing and amending Regulation (EC) No 184/2005. In the compilation of BoP, responsibility is shared between Eurostat and the ECB. Eurostat focuses on detailed ITS data as well as quarterly and annual aggregates of the EU (and subsequently also for the euro area), whereas the European Central Bank (ECB) is in charge of compiling and disseminating only the euro area monthly and quarterly balance of payments statistics. All legal related information can be accessed at: EUR-Lex website.

The data for the statistics on balance of payments and international investment position are delivered at aggregate level following the confidentiality principle to the European Central Bank (ECB), Eurostat, the Statistical Office of the European Union, the OECD, the IMF, the World Bank and the UN. The organisations publish the data of the statistics in several printed and Internet publications.

The data protection of data collected for statistical purposes is guaranteed in accordance with the requirements of the Statistics Act (280/2004), the Act on the Openness of Government Activities (621/1999), the EU's General Data Protection Regulation (EU) 2016/679 and the Data Protection Act (1050/2018). The data materials are protected at all stages of processing with the necessary physical and technical solutions. Statistics Finland has compiled detailed directions and instructions for confidential processing of the data. Employees have access only to the data essential for their duties. The premises where unit-level data are processed are not accessible to outsiders. Members of the personnel have signed a pledge of secrecy upon entering the service. Violation of data protection is punishable. 

Further information: Data protection | Statistics Finland (stat.fi)

The compilation of statistics is also steered by the European Union's Regulation (EC) No 223/2009 on European statistics, the Regulation on the European statistical programme 2013 to 2017 (99/2013) (extended to 2020) and numerous statistics-specific regulations. 

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.

This indicator refers to Eurostat Quality Report Chapter 1.1.2.The analysis in this section focuses on the availability of the data to the users. The tables present the number of cells flagged as confidential and non - publishable, compared with the total number of cells that have to be provided according to the BOP Regulation.

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

Statistics Finland has in place an advance release calendar that provides information on a monthly basis about release dates for the coming year for BOP, IIP, FDI and ITS, and data. The public is informed of the advanced release calendar.

Statistics Finland release calendar can be found under Future releases - Statistics Finland

Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data are public after they have been updated in the web service. 

Further information: https://www.stat.fi/org/principles/publication-principles-for-statistics

The data of the statistics on balance of payments and international investment position are published monthly and quarterly. 

Eurostat Website:

BOP: monthly and quarterly

FDI flows and stocks: annually

IIP: quarterly and annually        

ITS: annually

The releasing of topical news, such as news contents, is decided on a case-by-case basis. The channels of topical news are:  

www.stat.fi

www.facebook.com/Tilastotohtori  

https://twitter.com/StatsFinland

The statistical releases and statistical database updates of the statistics on balance of payments and international investment position are published on Statistics Finland's website. Data users can subscribe to emails concerning releases on desired topics (so-called news notification service).

https://www.stat.fi/en/statistics/mata

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

Statistics Finland BOP database: https://pxdata.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__mata/?tablelist=true

Statistics Finland ITSS database: https://pxdata.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__tpulk/?tablelist=true

Statistics Finland FDI database: https://pxdata.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__ssij/?tablelist=true

Not applicable.

data are disseminated and accessible at national level by Statistics Finland for:

Monthly BOP data; Quarterly BOP data; Quarterly IIP data (incl. Quarterly revaluations data); Annual FDI data; Annual ITS data

Micro data or unit-level data are available from Statistics Finland for scientific studies and statistical surveys.
 
The Research Services offer ready-made data and tailoring of data according to research need. Data are available from both enterprise and individual databases in a variety of ways. The data, their tailoring and remote access are subject to charge.
 
Statistical legislation and data protection and confidentiality practices specified in legislation are applied in compiling and releasing the data. The releasing of data is subject to a user licence. View the rules of the Research Services (PDF).

Equal access for all users.

User support for data access and interpretation: https://www.stat.fi/en/statistics/mata#contacts

Not applicable.

A general methodological note for NA and BOP is available at http://www.stat.fi/til/vtp/vtp_2022_2022-01-10_men_001_en.html

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.

When compiling statistics, Statistics Finland observes the European Statistics Code of Practice (CoP) and the Quality Assurance Framework (QAF) based on them. The Code of Practice concerns the independence and accountability of statistical authorities and the quality of processes and data to be published. The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Division and are supplementary to them. The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice. The principles are also compatible with those of the European Foundation for Quality Management (EFQM).

More information about this is available on Statistics Finland's quality management pages. http://stat.fi/org/periaatteet/laadunhallinta_en.html

Every year Statistics Finland conducts statistical auditing that helps to ensure the quality of statistics.

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

The BOP, IIP, ITS and FDI data transmitted by Finland to Eurostat are generally in line with the EU requirements and compliant with the guidelines. Eurostat welcomes the efforts made to achieve improvements in data quality and encourages Finland to continue its participation in the ongoing work of international organisations to reduce bilateral asymmetries, including its participation in the FDI Network, as well as to continue work to reduce size of errors and omissions.

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.

• Classification: (1) Economists, and researchers (2) Government agencies and ministeries, (3), Bank of Finland, ECB (4) Eurostat, (5) OECD, IMF, (6) National Accounts. Importance varies through number of users and level of day-to-day co-operation.
• Economic analysis, country specific trade information
• Generally a more detailed information or faster information would fill shortcomings
• Where legal limitations do not restrict the use, timeliness and data sharing are developed and monitored continuously

Regular meetings with main users.

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

Data completeness – the provided cells expressed as % of required cells refers to the completeness of BOP, IIP, FDI and ITS data provided to Eurostat based on the requirements of the BOP Regulation.

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.  

(i) Accuracy can be measured using the concept of Reliability - defined as the closeness of the initial estimated value to the subsequent estimated value. This section refers to the current Eurostat Quality Report 2.1.1. Quantitative assessment of revisions. Complementary information on Revisions are also provided under S17 Data Revision.

The quantitative analysis focuses on the size of revisions, their direction and the reliability of trends using the data provided by countries to Eurostat.

For the Monthly BOP, Quarterly BOP and Quarterly IIP items, revisions are assessed using two types of indicators both of which are based on the comparison between first and last assessments:

- Directional stability indicators measure how often the first assessment is subsequently revised in the same direction (the upward revisions ratio and the directional reliability indicator).

- Relative size indicators measure the difference between the first and the last assessments. These absolute differences may be quantified relative to the underlying series (when strictly positive) or to the underlying outstanding amounts. These indicators are the symmetric mean absolute percentage ratio, mean absolute comparative ratio and for net/balance series the net relative revisions.

(ii) Accuracy can be measured using the concept of Vintage Analysis. This section refers to the current Eurostat Quality Report 2.1.2 Vintage Analysis. For the assessment of annual data (ITSS, credit and debit, FDI flows and positions, inward and outward), the analysis focuses on the differences between the values as reported in the last 4 data deliveries to Eurostat. The counterpart area is Extra EU27 and Rest of the World.

(iii) Accuracy can be measured using the concept of Plausibility – referring to the absence of unexplained changes. This section refers to the current Eurostat Quality Report 2.2. Plausibility. This concept calculates the share of unallocated partner or activity from total (%) for ITS, FDI flows and positions.

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 is delivered in time.

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. 

This section refers to the current Eurostat Quality Report 5.3.1. Bilateral Intra-EU asymmetries are presented in Annex 3 to the Eurostat Quality report.

Asymmetries are the result of differences in measurement, in the procedures applied and in the interpretation of statistical concepts. Thus, asymmetries can be regarded as a measure of comparability.

National compilers are encouraged to perform regular checks of their FDI transactions and positions through the FDI network and possibly conduct bilateral exercises to reduce asymmetries in services.

Statistics Finland participates in ARM conducted by Eurostat to reduce asymmetries in ITSS. Finland has one of the smallest absolute and relative asymmetries in ITSS.

Statistics Finland continues using the FDI network not only to ask for confirmation of big transactions/positions observed in our data but also to ask for information from partner countries in those cases in which mirror data reported amounts different from observed data.

Consistent BOP/IIP time series are made available to the users as far backwards as possible dating back to 2006.

For ITSS and FDI consistenct time series begin from year 2013.

Fully detailed data under the BPM6 methodology is available from Q1 2006 onwards.

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).

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. 

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

Known deviations for travel item:
- Accommodation arranged via digital intermediation platforms, expenditures of tourists who stay overnight using private arrangements
and day travellers not included in estimation of travel exports.
- package tour arranged by a travel agent resident in the same economy than the customer are not unbundled.
- treatment for tour operators, which consider the “package tour” as a new and unique product services entirely sold to the travellers and measured by the full expenditure made by the traveller to the tour operator not followed.
 
Financial services estimates:
- Explicit charges: collected
- Margins on buying and selling transactions: n.a.
- Assets management costs deducted from property income in the case of asset-holding entities: n.a.
- FISIM: estimated
 
Insurance and pension services are derived as the margin between the amounts accruing to companies (premiums, contributions and supplements) and the amounts accruing to policyholders (claims and benefits). Adjustments cover the claim volatility, the premiums supplements on the import side and freight insurance.
 

Computer and Audio-visual and related services:
Statistics Finland applies the distinction between licenses to use and licenses to reproduce and/or distribute. Temporary non-customised Computer or Audiovisual services right to use are treated as services and goods with perpetual right to use as goods. 
 
Telecommunications, computer and information services:
Data covers the online purchases by resident households abroad via internet or a digital platform. (Mini) One Stop Shop (M/OSS) system is not used to measure this type of transactions.
 
No systematic checks/adjustment(s) are made to market prices of services’ transactions between affiliated enterprises as regards disproportionately large values for signs that there are no disguised bridends, or reversely any disproportionately low values, for signs that there are no disguised withdrawal of equity.
 
Sub-contracting tasks related to transport, construction or computer activities made by a specialist service arranger are excluded from other business services, and included in the specific appropriate services.

The methodology for Primary Income is outlined in Chapter 11 of the IMF BPM6.
For compensation of employees, in addition to the tax administration's payment statistics, data on income earned abroad are available in Statistics Finland's income distribution survey. The social contributions paid by employers obtained from abroad have been estimated. Cross-border compensation of employees made by employers under saving schemes have been assessed as well, but considered as low at the time when the micro analysis was made. Those payments are covered by an assumed 50% increase to tax payment data. The source used in this estimation was discontinued in 2020. This approach will be revisited in case tax or regulatory changes have happened since then. Furthermore, a new income data source will be used to check the stable evolution of the time series.  
Regarding employers' imputed social contributions in cross-border flows of compensation of employees, no direct information is available. Their size is estimated. Amounts temporarily paid by employers to their employees in the case of sickness, maternity, industrial injury, or disability cannot be identified from tax data. Such payments are included in wages and salaries. Amounts payed by embassies and international organizations located in Finland to Finnish residents should also be included.  
Dividends received by residents for their equity holdings abroad seem to be under-recorded. Bank of Finland calculations are based on the CSDB and are not further adjusted. On the liability side, Finnish equities distribute higher dividends to their non-resident holders. A return analysis (dividend received/paid divided by stock of equity) shows a recurrent larger rate of return of Finnish shares compared with that of non-Finnish shares. Since the beginning of the Covid-19 crisis, Bank of Finland noted distortions in dividend payments and has been carefully checking outgoing dividend payments. However, there are some limitations for the checking of incoming dividend payments that it is supposed to be done by other EU compilers and the ECB. The issue has been brought to the attention of the ECB Working Group on Securities Statistics. 

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

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

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

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

Households’ portfolio investments are obtained from custodian securities data collected by the Bank of Finland. Non-resident custodians are not covered. Custodian data is complemented with other data sources for specific sectors. Bank of Finland asks respondents to report their portfolio investment assets and liabilities including securities held in custody with non-resident custodians. Holdings in custody abroad by financial auxiliaries, captive financial institutions and money lenders, pension funds, households and Non-Profit Institutions Serving Households (NPISH) are not covered. 
Third Party Holdings (TPH) in the context of Securities Holdings Statistics by Sector (SHSS). The relevance of these data seems to have decreased during recent years, however TPH is not yet incorporated in the data production process. Finally, the impact of potential missing holdings has not been further analysed.

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

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

No data for derivatives concerning insurance corporations and pension funds.

There are quality issues regarding the derivation of transactions and valuation of unlisted equity. Statistics Finland explained that unlisted shares are valued by using the book value of own funds from the business statistics database. Changes in stocks are linearly distributed between quarters. 

Main sources do not cover interest on trade credits. There are no plans yet to fill this coverage gap. Statistics Finland considers the amounts as insignificant.

None.

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. 

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.

Most of the differences displayed on the table are very close to zero, mainly due to rounding issues. Even the differences on assets and liabilities by functional category, which are a bit higher, are also due to rounding issues.

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 Finland BPM6 - Based BOP Quality report. The main source of data for the Goods BOP component is the International Trade in Goods Statistics compiled by Customs Finland based on Intrastat for intra–EU trade and information on extra–EU transactions. In order to ensure compliance with the b.o.p. “change in economic ownership” principle data are adjusted by adding/deducting the following elements e.g:

(+) (-) Goods under processing (identified according to the nature of transaction codification system)

(+) (-) Other goods related to processing (ITS survey and case-by-case analysis in National Accounts)

 (+)Merchanting (ITS survey)

(-) CIF-FOB margins

(+) illegal goods, estimated for National Accounts purposes

(+) e-commerce by households

(+) purchase of second-hand cars by resident individuals from abroad.

All the adjustments are performed both for monthly and quarterly BOP.

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. 

Most of the differences displayed on the table are very close to zero, mainly due to rounding issues. Even the differences on assets and liabilities by functional category, which are a bit higher, are also due to rounding issues.

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

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.

Most of the differences displayed on the 
table are very close to zero, mainly due to 

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. 

Most of the differences displayed on the table are very close to zero, mainly due to rounding issues.

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

Most of the differences displayed on the table are very close to zero, mainly due to rounding issues.

This indicator refers to Eurostat Quality Report Chapter 6.1.5 Errors and Omissions (E&O). Although the BOP accounts are, in principle, balanced, imbalances result in practice from imperfections in source data and compilation. This imbalance is labelled net errors and omissions. According to BPM6 § 2.25, “a consistent sign indicates a bias in one or more components. A persistent positive value of net errors and omissions suggests that credit entries have been understated or omitted or debit entries have been overstated. In contrast, 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 size and the sign of the E&O item are analysed in the Eurostat Quality Report Tables.

We recognize that Finland’s errors and  omissions are high. Net lending is derived  from both the current account and the financial account, and sometimes they differ quite dramatically, and sometimes they don’t. We have not been able to see a systematic over- nor underestimation of net lending from either side. However if you look at errors and emissions over a longer time span as depicted in chart 4, the large fluctuations have a tendency to cancel out over time.
We will continue our efforts to improve data quality by monitoring and investigating deviations in net Errors and Omissions.

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.

The revision policy of National Accounts in Statistics Finland was reviewed in 2019 in line with the Harmonised European Revision Policy (HERP).

Several versions of the National Accounts for each statistical reference year are compiled. All the data available at the time of compiling each version are utilised, so the National Accounts become gradually revised. The final figures are published about two years after the end of the statistical reference year. When statistical data are published nationally, they are also delivered to Eurostat and the ECB.

The current account and non-financial accounts follow the same revision policy as National Accounts to keep the consistency through the whole accounts system.

In compilation of the IIP, financial account and QFA, HERP is noted, but a more flexible approach is followed. A lot of emphasis has been put to improve the consistency between QFA RoW and the financial account during the past few years. The findings and revisions due to this work have been considered important enough to be implemented right away. Another reason for the more flexible approach has been the revisions of the most important source statistics. To avoid inconsistencies and vintage differences between the IIP, financial account and QFA and for example MFI or Investment funds statistics some time require revisions right away.

Major revisions in Statistics Finland were performed in 2014 following the introduction of the BPM6 and the identification of new data sources in 2019. The last two major revisions of the IIP took place following the introduction of the BPM6 and the identification of new data sources.

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.

In principle, BoP, IIP and related statistics in Finland rely on enterprise surveys to which Statistics Finland and Bank of Finland are legally entitled. As not all external transactions/positions are directly observable and as the costs for respondents should be restricted as far as possible, administrative and statistical data sources are used.

The source data characteristics from various reporters are as follows:

1. ITGS, travel and reporting by financial enterprises to Bank of Finland are the main monthly data sources. Bank of Finland surveys cover all other functional categories 

2. Non-financial enterprises are obliged to report their data on a quarterly and annual basis.

3. Annual FDI reports have to be sent by economic entities on their stocks and reinvested earnings. 

Table 18.1 Data Sources (see Annex)

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).

EBO

PS 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).

(*) In principle, Enterprises’ survey or direct reporting (also known as primary source). (**) Other adjustments to improve the exhaustiveness and comply with the standards definition (i.e. Business to Households adjustments, or can be secondary data source(s) or model-based estimate(s) to cover services not captured by the primary source, like FISIM or dealers margins in the case of financial services)

Transactions are implemented according to the centre of predominant economic interest (residence) of participating units.

Transactions are based on market prices.

EBOPS 2010 transactions are recorded on an accrual basis.

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

EBOPS 2010 items are broken down by partner country.

Statistics Finland does not publish ITS data beyond EBOPS 2010 and its complementary groupings.

After the questionnaires have been accepted by the Central Bank or Statistics Finland, there are a number of validation practices in the compilation process for the BOP, IIP and related statistics. In principle, the plausibility of the data is observed (development of time series), presence of outliers, size of revisions as well as correspondence with other statistical data (e.g. Foreign Trade Statistics, Banking Statistics) as well as mirror data from main partner countries.

Not applicable.

Not applicable.

The c.i.f/f.o.b. adjustment for imports is estimated using freight costs based on the weight of the freight, the mode of transport, the tariffs, the nationality of transporter and the distance transported.

Reinvested earnings are calculated as a residual of the current operating profit and dividends distributed. For direct investment income, total annual earnings are derived from balance sheet information on assets and liabilities of direct investment enterprises in Country B and abroad (available with a lag of 16 months). Until the balance sheet data become available, the current 54 operating performance profits are estimated for the current year and allocated on a prorated basis.

No seasonal adjustment available for Finnish BOP data.