Banca d'Italia

DG Economics, Statistics and Research - External Statistics Division

Banca d'Italia, Via Nazionale 91, 00184 Roma (Italia)

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.

Bop data refer to reference area Italy. San Marino and Vatican City are not considered as part of the Italian economic territory.

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 – national level

•  National Consolidated Law on Banking (Legislative Decree 385/1993) - Article 8.3 of the Consolidated Law on Banking requires Banca d'Italia to make statistics available on the entities that are subject to its supervision. The dissemination of a wide set of statistical indicators through the Banca d'Italia statistical publications is also performed as a service to the public.
•  Legislative Decree 195/2008 - Article 11 of the Decree assigns to Banca d'Italia the task of collecting information which is necessary for the compilation of balance of payments (b.o.p.) and international investment position (i.i.p.) statistics.

Institutional Mandate – European level

• Regulation no 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,
• Commission Regulation (EC) No 601/2006,
• Commission Regulation (EC) No 602/2006,
• Commission Regulation (EC) No 707/2009,
• Commission Regulation (EU) No 555/2012,
• Regulation (EU) 2016/1013
• Commission Delegated Regulation (EU) 2019/505 of 19 December 2018
• Quality reports for the BoP domain are prepared in accordance with Commission Regulation (EC) No 1227/2010 of 20 December 2010 implementing Regulation (EC) No 184/2005 (OJ No L 283/3).

At national level, data sharing and coordination are established among Banca d'Italia, Istituto nazionale di statistica (National Institute of Statistics, Istat) and Ministero dell'Economia e delle Finanze (Ministry of Economy and Finance, MEF) to facilitate the mutual provision of statistical data, while respecting confidentiality. A permanent committee ensures coordination on statistical matters between Banca d'Italia and Istat.

Regarding the disclosure of data that could permit the direct or indirect identification of the reporting economic entities, a specific policy is currently enforced for Italian Bop

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.

The policy adopted in Italy envisages not disclosing statistical data that refer to less than three reporting agents. Automatic procedures are applied in order to enforce the policy. This policy also applies to microdata.

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.

Italy provides to Eurostat complete datasets, as required by the BOP Regulation, with also all the required cells available for disclosure.

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

An advance release calendar giving Bank of Italy’s statistics release dates at least a quarter ahead of data diffusion can be found under Statistics release schedule

http://www.bancaditalia.it/statistiche/calendario-pubblicazioni/calendario-pubblicazioni.html?com.dotmarketing.htmlpage.language=1) under the headings Statistics > Statistics release schedule.

National Bop data are released simultaneously to all users through the internet website (http://www.bancaditalia.it/statistiche/tematiche/rapporti-estero/bilancia-pagamenti/index.html?com.dotmarketing.htmlpage.language=1, section Statistics > External transactions and positions > Balance of payments).

The data are also published in the Bank of Italy's monthly report Statistics Series – Balance of payments and International Investment Position and in the Bank of Italy's Annual report (https://www.bancaditalia.it/pubblicazioni/index.html).

Eurostat Website:

BOP: monthly and quarterly

FDI flows and stocks: annually

IIP: quarterly and annually        

ITS: annually

Bank of Italy's website;

BOP: monthly and quarterly

FDI flows and stocks: annually

IIP: quarterly   

Remittances: annually

No press release envisaged

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.

Bank of Italy's Statistical Database (BDS).

The data are also available on Bank of Italy's website in the Statistical database BDS: Balance of payments. This system enables users to search, view and download statistical tables in complete or partial form.

The total number of accesses to online Statistical Database (BDS) in the year 2022, for all the data domains (not only external statistics) amounted to 333.000.

Bank of Italy's microdata on specific items (i.e. Other Services) are accessible to researchers.

Micro data is accessible through the BIRD remote processing system, which is subject to the release of a user license. Authorized users receive detailed instructions on how to submit programs for processing.

Authors who refer in their publications to results obtained with the BIRD system are required to cite the source (e.g. "Source: Banca d'Italia, Survey on international services transactions of non-financial and insurance firms - direct reporting"); however, they may not involve the Bank of Italy in any way since they are entirely and exclusively responsible for the use of the data.

National balance of payments data are sent to the European Central Bank (ECB) and to Eurosta together with the extra euro area contribution, some days before the SDDS Plus publication on the Banca d'Italia's website, in the frame of data exchange for the aggregation of the euro area statistics.

Not applicable.

Bop Manual:

BI's Balance of payments and International investment position Manual (In Italian only) is available on Bank of Italy's website (https://www.bancaditalia.it/pubblicazioni/metodi-e-fonti-manuali/manuale_BOP.pdf).

Analysis and methodology:

Methodological notes are regularly updated on BI's website (in English). (https://www.bancaditalia.it/statistiche/tematiche/rapporti-estero/bilancia-pagamenti/index.html?com.dotmarketing.htmlpage.language=1)

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.

Banca d'Italia views its oversight of the body of statistical information as being primarily oriented toward satisfying the informational requirements of an ever increasing user base. Banca d'Italia's Committee for Statistics Management is also responsible for defining levels of data quality assurance and oversees data validation procedures for checking the consistency and plausibility of reported data. Senior officials of Banca d'Italia meet frequently in internal working groups on issues specifically related to the quality of euro-area and national statistics, from both the process and the product point of view. The statistics are processed, checked and disseminated according to International standards.

Internal tasks regarding the collection, processing and dissemination of statistics are organized in such a way to ensure that quality is closely monitored. The checks on the data are performed at various levels within the Directorate General for Economics, Statistics and Research both for individual and aggregates data:

* formal correctness of input data,

* logical coherence of accounting data,

* consistency and trends of elementary time series,

* trend analysis of output time series over time.

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

The Eurostat Quality Report focuses primarily on the factual requirements of Member States to compile and transmit BOP, IIP, ITSS and FDI data and their compliance with the legal obligations. In addition, it provides information relevant for assessing the quality of the BOP, IIP, ITSS and FDI data, with particular emphasis on total aggregates and major components needed to compile the aggregates.

The overall quality of the BOP, IIP, ITS and FDI datasets transmitted by Italy to Eurostat is very satisfactory, in line with the EU requirements, and all existing deviations were fully explained.

Eurostat supports Italy to continue its bilateral data exchanges in order to try to reduce major asymmetries, via the ITSS-ARM and the OECD forum(s) for its main identified asymmetries under travel, transport and other business services, and the FDI network as regards its FDI income bilateral asymmetry with France.

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.

At the internal level, the Banca d'Italia's Committee for Statistics Management coordinates the statistical needs of the main departments dealing with statistical resources to assist them in performing their institutional activities and to maximize cost-effectiveness in data collection.

A facility available in the statistical section of the Banca d'Italia website allows users to contact BI statistical staff directly for data requests and information on methodological aspects.

Analysis of the received requests allows Banca d'Italia to better identify users' needs. Within the ESCB a formal procedure is followed in order to collect user needs and assess the advantages of new statistical requirements against their costs for reporting agents before they are introduced (merits and costs procedure).

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. 

For Italy the data completeness rate is almost always 100%.

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.

(Qualitative assessment of revisions)

As to goods, Italy notices an improvement in comparison to the previous QR, in which the September 2019 benchmark revision of national accounts produced more adjustments for the data in 2020 than in 2021, both on credit and on debit side. Anyway, the revision amounts are very low, and in some cases negligible, related to the total credits and debits.

Concerning services item, almost all Upper Revision index values are in the acceptance range for the quarterly BOP; only one value (services D6, debit) nears the upper bound (67%). As to monthly data, Italy has have noted an underestimation in services (W1) for provisional data. Many Ebops items are compiled with times series models, and some coefficients estimation may be influenced by Covid data. Italy is investigating the issue.

As for secondary income, on the debit side Italy observes an improvement since 2019 and the value of the SMAPE (Symmetric Mean Absolute Percentage Error, measuring the relative size of the revisions) indicator is very small (1%), whereas on the credit side the increase is due to the introduction of a new component (monetary income).

In the capital account (W1), Italy touches the highest SMAPE value. On the debit side the revision is due to CO2 emissions trading volatility, and to several updates in the data provided by the enterprises. On the credit side, revisions mainly depend on the update of the public transfers provided by General Government  (also after the introduction of the PNRR ).    

With reference to primary income, both in monthly and quarterly figures, it should be taken into account that first estimates of income on FDI and other investment mostly rely on forecasts. Only after the acquisition of actual annual stocks and FDI income on equity data, investment income figures are revised.

As to Direct Investment, revisions (related to flows, stocks and primary income) are due to the acquisition of the actual annual stocks data.   

As for Other Investment in the IIP, the amount of revisions is very limited during the whole period, both for assets (2% on average) and for liabilities (1.1% on average). Therefore, the prevalence of upward (or downward) revisions is not due to a specific reason. Flows are derived from stocks, so similar observations apply.

As for Portfolio Investment assets in the IIP, the amount of the revisions is very limited during the whole period, both for assets (-0.3% on average the Extra-EU 27 figures and -0.5% the World figures) and for liabilities (0.2 % on average). Therefore, the prevalence of upward (or downward) revisions is not due to a specific reason. Flows are derived from stocks, so similar observations apply.

(Vintage analysis)

The different value observed in vintage 2020 for 2018 FDI inward flows and stocks (Rest of the world) is due to two new FDI liabilities vs EU27 which emerged during the last year FDI network annual exchange of FDI positions.   

As regards FDI abroad, differences observed between vintage 2021 and the previous one for 2018 and 2019, flows and stocks, are due to the acquisition of new real estate data.

With reference to 2020 FDI in the reporting economy stocks data vs Rest of the world, the value of r2022 is due to a huge revision introduced in the OFBV valuation of an Italian company controlled by a Dutch enterprise.

With reference to 2020 FDI in the reporting economy stocks data vs ExtraEU27, the value of r2022 is due to some revisions by reporting agents.

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).

National data collection and processing timetables are adequate to meet timeliness and periodicity for disseminating the BOP, IIP, FDI and ITS statistics according to the EC Regulation. 

Not applicable. 

Not applicable. 

For Italy the actual delivery of the data always anticipates the target date.

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.

Concerning services, Italy considers the bilateral exercises very useful in order to reduce asymmetries. Italy is currently involved in an ARM exercise with France: as a first result, discrepancies in SB and SJ items were strongly reduced. In coming months, Italy will participate to a new ARM exercise with Greece. Moreover, Italy is active in OECD Asymmetries Expert Group.

In general, with reference to FDI stock data, some differences remain in the valuation criteria with some countries (already highlighted in FDI network exchange exercises). Furthermore, differences can be also due to data sources: Italian 2021 stocks data, including the final estimations of reinvested earnings, are calculated on the basis of the annual FDI survey, whereas in some other countries annual FDI survey data for 2021 were not still available in September 2022.

As to FDI income, the difference with ES in DIA credits refers to a mistake in the COPC income components referred to a single participation reported by the Italian direct investor. This difference emerged during the activities of the Schuman Programme on BOP asymmetries.

Italy will continue in 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 differ from observed data. In particular, Italy recently contacted FR in order to understand the reasons behind the huge asymmetry in FDI income debits.

No comparability issues over time

No major breaks in QBOP and QIIP time series available to users

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). 

Italy follows the BOP methodology and concepts defined in the international guidelines.

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. 

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

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

Italy does not deviate from methodological standards.

No deviations from International standards

No deviations from International standards

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. 

Statistics of different frequencies are fully reconciled.

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 BOP/ITGS reconciliation table is available in the annex section (“Italy – Reconciliation table”)

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. 

As to Goods, differences in 2022Q1 and 2022Q2 are mainly attributable to vintages.

As to Services, differences are due to the different treatment of interbank FISIM in Bop and NA, as required by SEC2010 and BPM6 manuals. In 2022Q1 and 2022Q2 differences are mainly attributable to vintages.

These indicators refer to Chapter 6 and the corresponding tables of the Eurostat Quality Report: Coherence. All statistical outputs are internally consistent.

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.

Quarterly and annual data are fully reconciled for all domains.

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 annual data are fully reconciled.

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

Figures reported by Italy for BOP and IIP are fully consistent. However, please take note that in this table, on the assets side, the IIP totals on breakdowns "by functional category" and "by instrument" do not match. This because, on the "by instrument" side, two "reserve assets" instruments are missing in your report (INSTR_ASSET: FK - Reserve position in the IMF; INSTR_ASSET: FR41 - Other claims).    

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.

The ARE(EO) indicator for Italy does not exceed the 3rd quartile threshold of the EU27 for any of the time ranges reported in the table. The negative bias recorded in CS(EO) as from 2017Q3 is mainly due to negative EO's recorded in 2018, and has slowed down its negative trend in the last observed quarters. 

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 Italy, the data revision policy for Bop and IIP data coincides with the Harmonised European Revision Policy (HERP). The direction and magnitude of revisions are constantly investigated, also in order to identify the long-term trends in the revision patterns and whether series are identified for a systemic bias. 

The data revisions for BOP, IIP, FDI and ITS mainly follow the rules envisaged in the frame of the HERP. 

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 detailed table presenting the main data sources used by BOP domains is available in the annex section (“Italy – Data sources  table”).

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).

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

Italy confirms that EBOPS 2010 transactions are based on market prices.

Italy confirms that EBOPS 2010 transactions are recorded on an accrual basis.

Italy confirms that in case of a currency conversion the market exchange rate prevailing on the transaction dates is applied.

All the EBOPS 2010 items (standard components) are broken down by partner country.

Italy publishes detailed information about international tourism survey. For details look to website: https://www.bancaditalia.it/statistiche/tematiche/rapporti-estero/turismo-internazionale/index.html?com.dotmarketing.htmlpage.language=1

We have implemented automatic procedures for checking and validating the BOP-IIP-FDI-ITS data sources.

Together with deterministic controls, Italy’s Bop input data are validated by statistical analyses, which at a micro level ensure the consistency of the amounts declared by individual subjects based on their operations and their economic structure. These models identify anomalous data, taking into account in particular the influence that individual microdata have in the formation of macro aggregates of the balance of payments.

Automatic checks performed on the main Bop aggregates guarantee the coherence of macroeconomic statistics, avoiding the emergence of discontinuities in the time series

Finally, automatic procedures verify the data reliability requirement, as to the changes in the revised estimates compared to the initially released values.

Not applicable.

Not applicable.

We have not adjustment procedures applied to compiled estimates that are used to improve conformance with standards and/or to address quality concerns for BOP-IIP-FDI-ITS.

We do not use VIES data.

We publish current account seasonally adjusted on a monthly basis on Banca d'Italia website: Bank of Italy - Statistical Database (bancaditalia.it)